August 28, 2008
A Gallup Poll conducted for the Better Business Bureau (BBB) finds American consumers' trust in businesses has fallen in 13 of 15 industries measured. The poll's overall composite Index of consumer trust declined 14 percent over a seven-month period.
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 that they regularly deal with, were commissioned by BBB and conducted by Gallup. Based on its findings BBB said it will organize a business forum, ultimately geared toward reversing the current downward trend in trust between consumers and businesses.
The BBB Forum will try to 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.
"It is simply shocking that only 33 percent or less of Americans reports having a 'great deal' or 'quite a lot of trust' in 11 of 15 industries measured in the survey," said Steve Cole, president and CEO, Council of Better Business Bureaus. "And these trust levels are 14 percent less than they were last fall when we started taking these measurements. This trend should be a call to action for businesses, especially in an ailing economythe link between consumer trust and profitability is well established."
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 a lot of Trust" grouping, including:
• Auto Dealers : -19 percent
• Real 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 in 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 five percent change in the actual percentage of consumer responses in both the "Most Trusted" (dropped) and "Least Trusted" (gained) groupings.
