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BBB/Gallup survey: Americans’ trust in business drops
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WASHINGTON — The Better Business Bureau (BBB) announced findings from its second BBB/Gallup Trust in Business Index survey, noting American consumers say that in a seven-month period their trust in businesses has fallen in 13 of 15 industries measured, with an overall composite Index decline in consumer trust of 14 percent.
And nearly half (47 percent) of those surveyed say they have only “some, very little or no trust at all” in companies they do business with in everyday life.
The survey and Index, which measure consumer trust in businesses they regularly deal with, were commissioned by the BBB and conducted by Gallup.
Based on its findings, the BBB will organize a business forum, ultimately geared toward reversing the current downward trend in trust between consumers and businesses.
The BBB Forum will bring together a broad cross section of senior leadership from across industries examined in its survey, including representation from small and medium enterprises, as well as multinational corporations doing business in North America.
“The survey results reflect poorly on overall consumer confidence. The level of trust that Americans report having in the industries measured has fallen. This is not good news,” said Edward Johnson, president and CEO of the Better Business Bureau.
The first BBB/Gallup Trust in Business survey was conducted in September 2007; the second in April 2008.
Consumers were asked to indicate their degree of trust in businesses using six categories: A Great Deal of Trust, Quite a Lot of Trust, Some Trust, Very Little Trust, No Trust or Don’t Know.
From the first to second survey, nine industries had a 10-percent-or-more drop in the combined “A Great Deal of Trust” and “Quite a Lot of Trust” grouping, including:
• Auto dealers: -19 percent
• Reale estate brokers: -19 percent
• Department stores: -16 percent
• Gas stations: -15 percent
Another nine industries experienced a greater-than-10-percent-increase in the combined “Very Little Trust” and “No Trust” grouping, including:
• Home improvement stores: +33 percent
• Banks, financial institutions and stock brokers: +30 percent
• Department stores: +27 percent
• Gas stations: +27 percent
Department stores and gas stations ranked among the top four in both the “Most Trusted” (dropped) and “Least Trusted” (gained) groupings.
And only the banks, financial institutions and stock brokers segment saw a greater-than-5-percent change in the actual percentage of consumer responses in both the “Most Trusted” (dropped) and “Least Trusted” (gained) groupings.
“A drop in consumer trust has an adverse impact on the business community. However, for those companies who distinguish themselves from their competition by operating ethically and supporting trust in the marketplace, an opportunity is present,” added Johnson.
When asked what factors affect their trust in businesses, 77 percent of consumers cited increasing prices of food, health-care and energy as having major negative impacts.
Seventy-seven percent also said the actions of our nation’s most important companies affect the trust they have in businesses they deal with every day.
When asked what would strengthen their trust in businesses surveyed, 86 percent of respondents said it would be “very” or “somewhat” helpful for businesses to allow credible third-party assessment of their performance.
In contrast, only 58 percent said having government more actively involved in regulating performance would be “very” or “somewhat” helpful.
Demographic data show consumers with no college education drove down trust levels in seven of 15 industries.
As for gender, women specifically cited declining trust in home improvement and department stores, whereas men noted low degrees of trust in pharmacies, drug stores, banks, financial institutions and stock brokers.
And nearly half (47 percent) of those surveyed say they have only “some, very little or no trust at all” in companies they do business with in everyday life.
The survey and Index, which measure consumer trust in businesses they regularly deal with, were commissioned by the BBB and conducted by Gallup.
Based on its findings, the BBB will organize a business forum, ultimately geared toward reversing the current downward trend in trust between consumers and businesses.
The BBB Forum will bring together a broad cross section of senior leadership from across industries examined in its survey, including representation from small and medium enterprises, as well as multinational corporations doing business in North America.
“The survey results reflect poorly on overall consumer confidence. The level of trust that Americans report having in the industries measured has fallen. This is not good news,” said Edward Johnson, president and CEO of the Better Business Bureau.
The first BBB/Gallup Trust in Business survey was conducted in September 2007; the second in April 2008.
Consumers were asked to indicate their degree of trust in businesses using six categories: A Great Deal of Trust, Quite a Lot of Trust, Some Trust, Very Little Trust, No Trust or Don’t Know.
From the first to second survey, nine industries had a 10-percent-or-more drop in the combined “A Great Deal of Trust” and “Quite a Lot of Trust” grouping, including:
• Auto dealers: -19 percent
• Reale estate brokers: -19 percent
• Department stores: -16 percent
• Gas stations: -15 percent
Another nine industries experienced a greater-than-10-percent-increase in the combined “Very Little Trust” and “No Trust” grouping, including:
• Home improvement stores: +33 percent
• Banks, financial institutions and stock brokers: +30 percent
• Department stores: +27 percent
• Gas stations: +27 percent
Department stores and gas stations ranked among the top four in both the “Most Trusted” (dropped) and “Least Trusted” (gained) groupings.
And only the banks, financial institutions and stock brokers segment saw a greater-than-5-percent change in the actual percentage of consumer responses in both the “Most Trusted” (dropped) and “Least Trusted” (gained) groupings.
“A drop in consumer trust has an adverse impact on the business community. However, for those companies who distinguish themselves from their competition by operating ethically and supporting trust in the marketplace, an opportunity is present,” added Johnson.
When asked what factors affect their trust in businesses, 77 percent of consumers cited increasing prices of food, health-care and energy as having major negative impacts.
Seventy-seven percent also said the actions of our nation’s most important companies affect the trust they have in businesses they deal with every day.
When asked what would strengthen their trust in businesses surveyed, 86 percent of respondents said it would be “very” or “somewhat” helpful for businesses to allow credible third-party assessment of their performance.
In contrast, only 58 percent said having government more actively involved in regulating performance would be “very” or “somewhat” helpful.
Demographic data show consumers with no college education drove down trust levels in seven of 15 industries.
As for gender, women specifically cited declining trust in home improvement and department stores, whereas men noted low degrees of trust in pharmacies, drug stores, banks, financial institutions and stock brokers.
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