HAMPTON ROADS, VA - A national survey reveals that being a member of a local chamber of commerce is an effective business strategy because two-thirds of consumers believe that such companies use good business practices, are reputable, care about their customers, and are involved in the community.
The study, conducted by The Schapiro Group, an Atlanta-based strategic consulting firm, surveyed 2,000 adults and found that consumer perceptions of chamber members to be positive in many ways:
Hampton Roads Chamber of Commerce member Wade Powell, President, Dale Carnegie Training of Eastern Virginia, said, “There is tremendous value in a Chamber membership. You get to know other executives in the area and they get to know you. It’s great business exposure. We have one customer that we met at an event about six years ago, and we still do business with them. Most importantly, it gives us an opportunity to contribute back to the business community in which we operate.”
Major Impact on Small Businesses
Small businesses represent the largest segment of most local chamber membership rolls, and the study indicates that chamber membership has consistent and powerful benefits for small business members—if consumers are aware that the small business is involved with its local chamber.
For example, if respondents know that a small business is a member of its local chamber, the business enjoys a 49% increase in its consumer favorability rating, a 73% increase in consumer awareness, a 68% increase in its local reputation, and an 80% increase in the likelihood that consumers will patronize the business in the future.
Most people know fairly well what their local chambers do; the study assessed the effect of this knowledge on perceptions of chamber members. The researchers said ”any belief about the chamber of commerce—whether that belief was true or not—could have a significant positive impact on how someone views a member… he or she is more likely to think that the [member] company’s products stack up well and have a favorable opinion toward the company.”
The key factor in developing and maintaining positive consumer perception of chamber members, the Schapiro Group said, was that “positive outcomes only occur when consumers know that a business is a chamber member (i.e., being involved in the chamber is a known facet of the company's reputation).”
Accordingly, when consumers know that a large business is a member of the chamber, they are likely to patronize the company more often, to express favorable opinions about the company, to know more about the company, and to buy the company's products. The strength and nature of these effects differ by industry:
Large Restaurant Chains
When consumers know that a restaurant franchise is a member of the local chamber of commerce, they are15% more likely to report knowing a lot about the franchise, 58% more likely to eat at the franchise more often, 68% more likely to eat at the franchise in the next few months, and 37% more likely to think favorably of the franchise. Among consumers who do not eat at the franchise so often, those who are aware that the franchise is a member of the chamber are 33% more likely to hold favorable opinions of the franchise. Among consumers who hold less favorable opinions of the franchise, those who are aware that the franchise is a member of the chamber are 65% more likely to eat there in the coming months.
When consumers know that an insurance company is a member of the local chamber of commerce, they are 29% more likely to report knowing a lot about the company, 36% more likely to think favorably of the company, and 36% more likely to consider buying insurance from it. Among consumers who hold less favorable opinions of the insurance company, those who are aware that the company is a member of the chamber are 25% more likely to consider purchasing insurance from it. Among those who have not considered purchasing insurance there in the past, chamber membership increases that likelihood by 37%.
When consumers know that an auto dealer is a member of the local chamber of commerce, they are 21% more likely to have a favorable opinion of that company and 31% more likely to consider purchasing their next car from that company. Among those who have ever considered buying a car from a particular auto dealer, chamber membership leads to a 44% increase in consumers’ likelihood of purchasing a car there in the future.
The study, commissioned by the American Chamber of Commerce Executives (ACCE), in cooperation with the Western Association of Chamber Executives, was sponsored by Insperity, a Houston-based company that provides human resources and other business services to more than 100,000 businesses nationwide. J. Mac Holladay, founder and CEO of Market Street Services, an economic development firm in Atlanta, was a key contributor of concepts used to develop the study.
The new study tracks similar data reported by The Schapiro Group in 2007. “Despite changes in markets and demographics, a nagging recession and the growing influence of the internet, the chamber brand today is stronger and more dynamic than ever,” said ACCE President Mick Fleming. “We’re proud that the numbers prove, once again, that engagement in a chamber means a positive perception of the business in the eyes of the buying public.”
About the Hampton Roads Chamber of Commerce (www.HamptonRoadsChamber.com)
The Hampton Roads Chamber of Commerce is a not-for-profit, member-based business organization. The Chamber is a vigorous advocate for the economic success of its nearly 2,000 member businesses, which employ more than 280,000 men and women in southeastern Virginia. The Chamber promotes Hampton Roads’ healthy business climate through economic development, public policy initiatives, services and benefits to members. The Chamber is dedicated to creating economic opportunity and enhancing the quality of life in Hampton Roads.