REPUTATION LEADERS NETWORK

2015 City RepTrak®The World’s Most Reputable Cities

The World’s View on Cities: An Online Study of the Reputation of 100 Cities

RepTrak® is a registered trademark of Reputation Institute. Copyright © 2015 Reputation Institute. All rights reserved.

REPUTATION LEADERS NETWORKAbout Reputation Institute

Reputation Institute is the world’s leading reputation-based research advisory firm, founded by Dr. Charles Fombrun and Dr. Cees van Riel in 1997.

Reputation Institute’s RepTrak®

Research is the world’s largest and highest quality normative reputation benchmark database.

• 7 Dimensions of Reputation• 10 Years of Data Indexed• 40 Countries Measured• 15 Stakeholder Groups• 3,000 Companies per Year• 6M Responses per Year

Our most prominent management tool is the RepTrak® model for analyzing the reputations of companies and institutions – best known via the Forbes-published Global RepTrak® 100, the world’s largest study of corporate reputations.

We enable leaders to make business decisions that build and protect reputation capital and

drive competitive advantage

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REPUTATION LEADERS NETWORK

Fernando Prado

Managing Partner, Reputation Institute

@fpradoRI @Reputation_Inst #CityRepTrak

TODAY’S SPEAKER

REPUTATION LEADERS NETWORK

• City RepTrak® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

REPUTATION LEADERS NETWORK

Emotional Reputation

Rational Reputation

THE CITY REPTRAK® MODEL

REPUTATION LEADERS NETWORK

Supportive

Behaviors

Value

CreationPerceptions

Direct

Experiences

Country Actions &

Communications

3rd-party

Influence

Stereotypes

THE REPUTATION ECONOMY

REPUTATION LEADERS NETWORK

Stakeholder Group (Target): G8 general public (only

people who were “somewhat” or “very” familiar)

City Selection:

– Largest populations

– Largest GDP

– Cities which enjoy the highest amount of

tourism

Data Collection Method : CAWI (online interviews)

Data Collection Period: From February to March 2015

Sample: Over 19.000 consumers from G8 countries

rating the 100 cities included in the study

2015 CITY REPTRAK® STUDY OVERVIEW

REPUTATION LEADERS NETWORK

• City RepTrak® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

REPUTATION LEADERS NETWORK

SYDNEY

THE MOST REPUTABLE CITY IN 2015 IS…

REPUTATION LEADERS NETWORK

1

2

3

4

5

6

7

8

9

10

78,4

76,8

78,9

76,1

75,8

75,6

75,5

75,5

75,4

79,1Sydney

Vienna

Venice

Edinburgh

Barcelona

Copenhagen

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

New in Top Ten 2015

2015 CITY REPTRAK® – TOP 10

Melbourne

Stockholm

Vancouver

Geneva

REPUTATION LEADERS NETWORK

Vancouver London

Sydney

Vienna Geneva

Copenhagen Vienna

Oslo

Rome

Sydney

Barcelona

Venice

Florence

Oslo

Stockholm Florence

Barcelona

Melbourne Vancouver

Venice

Sydney

Toronto

Stockholm

Vienna

Venice

Edinburgh

Florence

London

Copenhagen

Zurich

2013 2012 20112014

Florence

Munich

Sydney

Vienna

Venice

Vancouver

Oslo

Barcelona

Montreal

London

CITY REPTRAK® IN RECENT YEARS – TOP 10

1

2

3

4

5

6

7

8

9

10

2015

Sydney

Vienna

Venice

Vancouver

Barcelona

Melbourne

Stockholm

Geneva

Copenhagen

Edinburgh

REPUTATION LEADERS NETWORK

1

2

3

4

5

6

7

8

9

10

Tokyo

New York

Los Angeles

Seoul

London

Osaka

Paris

Moscow

Shanghai

Chicago

GDP2Population1 Tourism3

Tokyo

Paris

Guangzhou

Bangkok

London

Shanghai

Singapore

Seoul Istanbul

Jakarta

Delhi

Manila Dubai

Kuala Lumpur

Hong Kong

Karachi

New York

1Demographia World Urban Areas: 11th Annual Edition; 2Global Metro Monitor Map (Brookings); 32015 MasterCard's Global Destination Cities Index

THE MOST REPUTABLE CITIES ARE NOT NECESSARILY THE LARGEST

Seoul

Beijing

New York

REPUTATION LEADERS NETWORK

1

2

3

4

5

6

7

8

9

10

Vienna

Zurich

Auckland

Munich

Vancouver

Frankfurt

Düsseldorf

Copenhagen

Geneva

EIU’s 2014 Global

Liveability

Melbourne

Helsinki

Vienna

Copenhagen

MelbourneToronto

Tokyo

Calgary

Zurich

Vancouver

Adelaide

Sydney

Perth

Stockholm

Munich

Auckland

Helsinki

Vienna

Mercer’s 2015

Quality of Living

Monocle’s 2015 Most

Livable Cities

BUT THE CITIES WITH THE BEST QUALITY OF LIFE ARE SIMILAR

Sydney

Berlin

Sydney

Vancouver

Reputation Institute Top Ten

REPUTATION LEADERS NETWORK

London

Paris

Vancouver

Sydney

Florence

Cape Town

Venice

Chicago

New York

San Francisco

Tokyo

Cambridge

World's Most Beautiful Cities

AS ARE THE MOST BEAUTIFUL CITIES…

Reputation Institute Top Ten

REPUTATION LEADERS NETWORK

IEP’s 2015 Global Peace Index

…AND THE SAFEST PLACES

REPUTATION LEADERS NETWORK

1-34

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

CITIES WITH A STRONG REPUTATION (70-80 POINTS)

REPUTATION LEADERS NETWORK

35-64

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

CITIES WITH AN AVERAGE REPUTATION (60-70 POINTS)

REPUTATION LEADERS NETWORK

65-99

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

100-101

Cities with a poor reputation (0-40 points)

CITIES WITH A WEAK REPUTATION (40-60 POINTS)

REPUTATION LEADERS NETWORK

Afghanistan

Albania

Algeria

Andorra

Angola

Argentina

Armenia

Australia

Austria

Azerbaijan

Bahamas, The

Bahrain

Bangladesh

Barbados

Belarus

Belgium

Belize

Benin

Bhutan

Bolivia

Botswana

Brazil

Bulgaria

Burkina Faso

Burma

Burundi

Cambodia

Cameroon

Canada

Cape Verde

Chad

ChileEvolution 2014-2015

Athens 11.8%

POSITIVE EVOLUTION OF CITY REPTRAK® IN THE LAST YEAR

Bogota 10.5%

Santiago 12.4%Melbourne 9.9%

Karachi 14.0%

Mumbai 11.2%

Shanghai 10.1%

Singapore 9.9%

Hong Kong 9.3%

Seoul 15.1%

REPUTATION LEADERS NETWORK

Afghanistan

Albania

Algeria

Andorra

Angola

Argentina

Armenia

Australia

Austria

Azerbaijan

Bahamas, The

Bahrain

Bangladesh

Barbados

Belarus

Belgium

Belize

Benin

Bhutan

Bolivia

Botswana

Brazil

Bulgaria

Burkina Faso

Burma

Burundi

Cambodia

Cameroon

Canada

Cape Verde

Chad

ChileEvolution 2014-2015

NEGATIVE EVOLUTION OF CITY REPTRAK® IN THE LAST YEAR

Nairobi -7.1%

Brisbane -6.9%

Warsaw -4.9%

Abu Dhabi -4.4%

Taipei -4.3%

Perth -3.6%

Tel Aviv -3.3%

Munich -3.2%

Frankfurt -2.5%

Hanoi -2.4%

REPUTATION LEADERS NETWORK

There is a demonstrated correlation between the reputation of a city and the

reputation of its country. In general, a city’s reputation tends to be higher than

that of the country in which it resides.

THE COUNTRY’S REPUTATION DEFINES THE REPUTATION OF ITS CITIES

REPUTATION LEADERS NETWORK

Paris

London

RomeNew York

Vegas Tokyo

BarcelonaBerlin

Washington DC AmsterdamLos AngelesMoscow Venice

San Francisco

MadridTorontoSt.Petersburg

Frankfurt Milan

MunichMiami

Chicago Montreal

FlorenceHong KongOrlando

Vancouver

Boston

BrusselsOsaka

Vienna

Sydney

Edinburgh

Athens

Dublin

Zurich

PragueDubai

New Orleans

SeattleIstanbul

JerusalemStockholm

Singapore Copenhagen

Atlanta Budapest

Bangkok MelbourneShanghai Houston

Rio de JaneiroBeijingKiev Lyon

Cairo

Mexico City Helsinki GenevaLisbon OsloSeoulNew Delhi Warsaw

Buenos Aires

Abu DhabiCancúnBucharestJohannesburg

Baghdad Sao Paulo

Cape Town

Kuala LumpurSantiago

Mumbai AucklandBrisbaneTaipeiManila

Hanoi

LimaKolkata/Calcutta Mecca PerthTehran Nairobi

Santo DomingoJakartaAdelaideCaracas

San Juan

MontevideoMacau

Bogota

Port-au-Prince

Gold CoastMonterreyGuangzhouKarachi

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

25 35 45 55 65 75 85

Well-known cities with

a strong reputation

Little-known cities with

a strong reputation

Communicate

AND A CITY ALSO NEEDS TO BE WELL-KNOWN

REPUTATION LEADERS NETWORK

34.7%

37.7%27.6%

35.3%

37.6%27.1%

Weights

2014

Adj R2 = 0,663

n = 15477

IMPORTANCE OF THE REPUTATION DIMENSIONS

REPUTATION LEADERS NETWORK

10.6

8.0

7.5

6.8

6.6

11.8

9.0

7.5

Safety

Well-Respected Leaders

Social, Economic & Environmental Policies

Well-Developed Political & Legal Institutions

Adequate Transport, Communications & Infrastructure

Advanced Economy

27.6%

Financially Stable & Future Growth

Well-Respected Products & Services

Business Environment

Technology

Headquarters of Leading Companies

Adj R2 = 0,675

n = 15477

Beautiful City

Appealing Experiences

Well-Known Personalities

Appealing Environment

37.7%

Effective Government

34.7%

7.2

6.9

6.8

5.7

5.6

IMPORTANCE OF EACH ATTRIBUTE

REPUTATION LEADERS NETWORKTOP TEN CITIES BY DIMENSION

Advanced Economy Appealing Environment

Stockholm

Melbourne

Sydney

Tokyo

Zurich

Geneva

Berlin

London

Copenhagen

New York

Effective Administration

1

2

3

4

5

6

7

8

9

10

Tokyo

New York

Berlin

London

Stockholm

Zurich

Geneva

Melbourne

Sydney

Hong Kong

Rome

Paris

Barcelona

Vienna

London

New York

Sydney

Amsterdam

Venice

Prague

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

REPUTATION LEADERS NETWORK

Very poor

Measures the admiration, esteem, trust and good

feeling generated by one city relative to others.

Emotional Reputation (City RepTrak® Pulse):

Obtained by the sum of the scores for each

attribute multiplied by the weight.

Rational Reputation (City RepTrak® Index):

City RepTrak® Pulse >

City RepTrak® Index

City RepTrak® Pulse <

City RepTrak® Index

Positive emotional halo

Negative emotional halo

CITY REPTRAK® MODEL: THE EMOTIONAL HALO

REPUTATION LEADERS NETWORKGAP BETWEEN EMOTIONAL & RATIONAL REPUTATION

Venice

Florence

Athens

Edinburgh

Prague

New Orleans

Dublin

Cancun

Lisbon

Madrid

1

2

3

4

5

6

7

8

9

10

Las Vegas

Moscow

Tel Aviv

New York

Abu Dhabi

Los Angeles

Ryad

Tokyo

Washington DC

Bogota

1

2

3

4

5

6

7

8

9

10

63.5

66.8

58.6

69.9

68.5

61.8

67.5

59.0

64.4

68.0

71.1

53.6

55.3

76.1

62.3

71.3

54.1

77.4

68.6

50.6

-6.7

-6.5

-5.5

-5.3

-3.7

-3.2

-3.1

-3.1

-3.0

-2.9

11.9

6.7

6.6

5.7

5.6

5.3

5.2

5.1

5.1

5.0

Emotional Halo

(Pulse-Index)

Emotional Halo

(Pulse-Index)

Country RepTrak® Index 2015 – Top 10 / Bottom 10 emotional halos

REPUTATION LEADERS NETWORK

North America 67.0

Europe 69.7 Asia-Pacific 59.7 Africa 51.4

Latin America 56.7

*Average score of the cities measured in each region.

Of the top 20 cities in the ranking, 15 are

European, with Stockholm in the lead.

Cities in Northern Europe obtain better

scores in reputation as they are well

perceived in the rational dimensions but

better emotional halos are reserved for

those with more historical tradition.

EUROPEAN CITIES STAND OUT ON THE GLOBAL STAGE …

REPUTATION LEADERS NETWORKSYDNEY AND MELBOURNE LEADING THE RANKING

Sydney

Melbourne

Australia – ranked in the top five of the most

reputable countries over the last six years – is

where Sydney and Melbourne, the two most

reputable cities in 2015, are located.

Both cities are the most heavily populated in the

region and stand out for the public’s perception of

the quality of their institutions, strong economy

and attractive environment.

REPUTATION LEADERS NETWORK

From Canada – the reputation champion in the Country RepTrak® 2015 –

Vancouver is the highest ranked Canadian city to make the list. Vancouver is

consistently named as one of the top five worldwide cities for livability and

quality of life.

VANCOUVER, THE CANADIAN REPRESENTATIVE

REPUTATION LEADERS NETWORKUS CITIES HAVE LOW EMOTIONAL HALO

San Francisco is the highest ranked city from the USA,

placing 24th, but New York performs better in the rational

dimensions (among the top ten cities in Quality of

Institutions, Advanced Economy and Appealing

Environment).

Most of the US cities included in the survey have a

negative emotional halo, except New Orleans.

REPUTATION LEADERS NETWORKASIAN CITIES AT THE TOP OF THE UPWARD TREND

Asian cities achieve the highest reputation

improvements, though they still have weak scores.

Seoul is the city with the highest reputation score

improvement (+15.1% over 2014), followed by Karachi

(+14.0%).

While China as a country improves its reputation, its

main cities do as well: Shanghai (+10.1%), Hong-Kong

(+9.3%) Macau (+5.8%) and Guangzhou (+5.0%).

Mumbai (+11.2%) and New Delhi (+9.3%) improve their

reputations after the declines of the previous year,

following India’s trajectory.

REPUTATION LEADERS NETWORK

• City RepTrak® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

REPUTATION LEADERS NETWORK

As in the case of companies, countries and cities also have their own reputation which has an impact

on their economies.

Places with a good reputation

welcome more tourists

Places with a good reputation

attract FDI

Places with a good reputation attract

foreign knowledge & talent

Places with a good reputation

increase exports

Places with a good reputation

improve their public diplomacy

WHY IS PLACE REPUTATION IMPORTANT?

REPUTATION LEADERS NETWORK

The good reputation of a city strongly correlates with an increase in the supportive

behaviors shown towards the city, such as visiting the city, living or working in the

city, or deciding to invest in the city.

A BETTER REPUTATION LEADS TO STRONGER SUPPORT

Sydney

Baghdad

Tehran

REPUTATION LEADERS NETWORK

Visit

0.73

Invest

0.72

Live

0.74

Work

0.74

Buy

0.75

Attend/organize

events

0.71

VALUE CREATION: REPUTATION & SUPPORT

REPUTATION LEADERS NETWORK

Visit Invest Live

SUPPORTIVE BEHAVIORS TOWARDS CITIES – TOP 10

Work Buy Attend/organize events

REPUTATION LEADERS NETWORK

• City reputations can be measured in a similar way to those of people or companies.

• The overall reputation of a city is an emotional perception constructed through direct experience, its own communication, the perspectives of third parties and generally accepted stereotypes.

• The overall emotional perception can be explained through different attributes and dimensions. Three main dimensions explain a city’s reputation:

• Quality of life (Appealing Environment)

• Quality of institutions (Effective Administration)

• Level of development (Advanced Economy)

• Cities with a strong reputation are positively perceived in all three dimensions.

• Stockholm lead the Effective Administration dimension

• Tokyo is the best perceived city in Advanced Economy

• Rome is the city with the best performance in Appealing Environment

• Reputation has a strong impact on the supportive behaviours of stakeholders that improve a city’s economy: tourist arrivals, foreign direct investment, exports, etc.

CONCLUSIONS

REPUTATION LEADERS NETWORK

• A city’s reputation is in great part determined by the country’s reputation and is strongly related to its familiarity.

• Sydney is the city with the best reputation, followed by Melbourne. Both are in one of the top five most reputable countries. Both cities stand out by the perceptions of their Effective Administration, Advanced Economy and Appealing Environment and are among the most livable cities in the world.

• In fifth place, Vancouver is the top Canadian city in the ranking, which is consistently named as one of the top five global cities for livability and quality of life.

• 15 cities of the top 20 are European, with Stockholm in the lead. On average, Northern European cities have higher reputation scores.

• San Francisco is the top US city in the ranking, but New York performs better in the rational dimensions (due to its negative emotional halo). Most of the US cities included in this survey have a negative emotional halo, except New Orleans.

• Following the trend of Asian countries (Country RepTrak® scores), the Asian cities in the study achieve the greatest reputation improvement, although most of them still have weak scores.

CONCLUSIONS (2)

REPUTATION LEADERS NETWORK

PERCEPTION

Bad

Good

Good

RE

AL

ITY

Communication is required

to capitalize on good

reality and overcome poor

perceptions

Change is required to alter

‘reality’ and minimize

reputational risk

Bad

REPUTATION MANAGEMENT

REPUTATION LEADERS NETWORK

The report and recording from this webinar can be found on Reputation Institute’s website:

http://www.reputationinstitute.com/research/City-RepTrak.aspx

Visit our website: www.reputationinstitute.comFind us on Twitter: @Reputation_Inst

CITY REPTRAK®