1. Buy Local Santa Monica Member Survey Results Final Report December 2011 * Confidential *

2. Survey Overview  Survey Demographics  Perceptions of Buy Local  Efforts to Attract and Retain Customers * Confidential *

3. Survey Participation – By BID Buy Local Member Survey n = 104 Santa Monica Place 32% 67% 33% 28% 26% 17% 0% PIO Montana Avenue Downtown Santa Monica Other Main Street Pier Conservancy Percentage Complete By BID Complete 104 (27%) Not Complete 279 (73%) Survey Participation Potential Survey Participants: 383 14 25 37 8 0 16 4 104 # Complete * Confidential *

4. Survey Participation – By Chamber Membership 28% 72% Buy Local Member Survey n = 104 Chamber Member Non-Chamber Percentage Complete By BID Complete 104 (27%) Not Complete 279 (73%) Survey Participation Potential Survey Participants: 383 29 75 104 # Complete * Confidential *

5. Buy Local Member Survey n = 104 Sub-categoryCount% TotalCompleted% Completed Other4913%1633% Professional Services4111%1434% Clothing & Apparel4512%1329% Retail products287%932% Health & Medical205%735% Art, Framing & Gallery205%630% Jewelry154%640% Bars & Restaurants5514%59% Coffee shops144%536% Food - general and specialty226%523% Salons & Spas154%533% Auto123%325% Entertainment113%327% Fitness164%319% Home furnishing113%327% Sporting Goods92%111% TOTAL383100%10427% Survey Participation – By Industry Type * Confidential *

6. Headquarters in Santa Monica; 1 location 71% Survey Participation – By Business Type* Buy Local Member Survey n = 104 * Q16 – Please select the option below that best describes the type of business establishment you represent in Santa Monica Headquarters in Santa Monica; multiple locations 11% Headquarters not in Santa Monica; (i.e. branch office) 8% Locally-owned franchise of regional/ national chain 2% Home-based Business 9% * Confidential *

7. Owner 69% Survey Participation – By Respondent* Manager 28% Employee 3% Buy Local Member Survey n = 104 * Q17 – Please select the option below that best describes your role at your business: * Confidential *

8. Q1 - What were the Top 3 Reasons you decided to join Buy Local? To increase my visibility in the community 31% 72% 83% 47% 31% 30% 4% 3% To help raise awareness in the importance of supporting local businesses To increase sales To stay informed about local events that are important to my business To build my professional network with other local merchants To reinforce/strengthen my brand To take advantage of negotiated group discounted rates (e.g. advertising) Other Buy Local Member Survey n = 104 * Confidential *

9. Q2 - Based on your experiences to date or how important you believe it would be, please rate the effectiveness of each of the following Buy Local initiatives in helping your business: Social Media Buy Local Member Survey n = 104 Advertising Campaigns Community Outreach Events BuyLocalMarket.com Buy Local SM Website Negotiated Discounted Advertising Business Training & Education B2B Networking Very EffectiveSomewhat EffectiveNot Effective I Don’t Know/ Never Heard * Confidential *

10. Q3 - Please rank the following potential target audiences for Buy Local marketing campaigns by order of importance to your business: * 1 = Most Important; 6 = Least Important Buy Local Member Survey n = 104 Target Audiences Weighted Average* Santa Monica Residents1.5 Employees of large local employers (e.g. Santa Monica College, City of SM, Saint Johns, Activision) 3.4 Other Santa Monica business owners/managers (e.g. Think Local First/Business-to-Business) 3.6 Local institutions (e.g. schools, religious institutions) 3.8 Visitors to Santa Monica3.9 Associations (e.g. Chamber of Commerce) 4.8 * Confidential *

11. Q4 - How valuable would the following events be to you and other Buy Local members? Buy Local “Sidewalk Sales” Buy Local Member Survey n = 104 Business-to-Business networking events Buy Local Customer Appreciation Day Buy Local “Expo” Training and education seminars Very ValuableSomewhat ValuableNot Valuable * Confidential *

12. Q5 – If you had the ability to co-market with other local businesses, please rank in order of importance which of the following co- marketing opportunities would be most beneficial to you: * 1 = Most Desirable; 3 = Least Desirable Buy Local Member Survey n = 104 Co-Marketing Opportunities Desired Weighted Average* By Location (e.g. Montana Ave, Main Street) 1.96 By Business Category (e.g. restaurants, retail) 2.02 By Complementary Business Category (e.g. cafes and bookstores, florists and jewelers) 2.11 * Confidential *

13. Q6 – On a scale from 1 to 10 (10 equals highest), how likely are you to recommend Buy Local to another business in Santa Monica? Buy Local Member Survey n = 104 10 8 7 6 5 4 3 2 1 9 39% 15% 10% 5% 13% 1% 3% 1% 12% Scale % Responded Average * Confidential *

14. Poor Sales 39% Taxes 9% Gov’t Regulation 8% Cost of Labor 9% Other* 25% Buy Local Member Survey n = 104 * Includes lack of customers (8%), fears about economy (5%), parking (2%), rent (2%) and miscellaneous (8%) Q8 – What is the single biggest problem facing your business today? Cost/Availability of Insurance 5% Inflation 3% Interest Rates 1% Quality of Labor 2% * Confidential *

15. Q9 - Over the next 12 months, I believe our sales will be: Much Higher 57% 14% 25% 4% 0% Somewhat Higher No change Somewhat Lower Much Lower Buy Local Member Survey n = 104 * Confidential *

16. Attract New Customers Increase Existing Customer Sales Raise Prices 69% 30% 1% ‘Most Important’ (%) Buy Local Member Survey n = 104 Q10 - To increase gross sales over the next 12 months, please rank the following activities by order of importance: 28% 3% 66% 4% 6% 93% 2 nd Most Important 3 rd Most Important * Confidential *

17. More than Half 1 71% Less than Half 2 25% I Don’t Know 4% 1Sales breakdown as follows: 51-75% (44%) and 76-100% (27%) 2Sales breakdown as follows: 1-25% (8%) and 26-50% (17%) Buy Local Member Survey n = 104 Q11 – Approximately what percentage of sales comes from existing (i.e. repeat) business? * Confidential *

18. Facebook Email Marketing Twitter Referral Discounts Blog Loyalty Cards 19% 30% 58% 21% 15% 10% Buy Local Member Survey n = 104 Q12 – Which of the following do you undertake to engage your existing customers? Direct Mail Other None 28% 43% 69% * Confidential *

19. Effective 31% Very Effective 15% Q13 – How effective have your marketing efforts been at generating repeat business? Somewhat Effective 37% Not Effective 8% I Have No Idea 9% Buy Local Member Survey n = 104 * Confidential *

20. Email address Full name Telephone Address Product/Service purchased 36% 49% 71% 39% 12% Buy Local Member Survey n = 104 Q14 – What type of customer information do you currently collect (if any)? Dollars spent Visit frequency We don’t collect any information 48% 60% 87% * Confidential *

21. Social media (e.g. Facebook, Twitter) Email marketing Online advertising Print advertising Customer referral programs 13% 26% 37% 13% 3% Buy Local Member Survey n = 104 Q15 – In the past 12 months, which of the following did you undertake to attract new customers? Daily deals (e.g. Groupon, LivingSocial) Trade shows We don’t collect any information 25% 29% 72% 34% 55% 60% Business networking (e.g. Chamber) Direct mail Other * Confidential *

22. Satisfied 27% Extremely Satisfied 13% Q16 – How satisfied have you been with your Daily Deal experience(s) you have implemented? Neither Satisfied/ Dissatisfied 37% Dissatisfied 20% Extremely Dissatisfied 3% Buy Local Member Survey n = 30 * Confidential *