State Of Distrust: New Survey Indicates Corporate Trust Waning Among The Influential Americans®

NEW YORK, June 13, 2011 /PRNewswire/ -- Distrust of corporations remains high among American consumers three-plus years after the nation's financial crisis, with a majority (64%) saying it's harder for US companies to gain their trust today than it was a few years ago.  Further, it appears this lack of confidence will continue into the future, with more than half (55%) saying it will be harder for corporations to gain their trust in the future. Distrust is particularly high among The Influential Americans®, GfK Custom Research North America's proprietary, leading-indicator segment representing the 10% of Americans most involved in creating change in society. Three in four of The Influential Americans (74%) find it harder to trust companies today than they did a few years ago, and 6 in 10 (61%) agree it will be even harder to earn their trust in the future.

The findings are from the GfK 2011 Corporate Trust Survey of 1,000 Americans examining the factors influencing trust among consumers. The national online survey examined trust across ages and industries, as well as the factors influencing the level of trust consumers have towards corporations.

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Corporate Actions Driving Mistrust

According to the survey, the top reasons for mistrust suggest that corporations have issues to address on multiple fronts. At the top: public perceptions of "CEO's and senior executives being overpaid"; "corruption among corporate management"; that companies "make up lost earnings at their customers' expense"; and that "more and more products are being made overseas."

While Americans across the board cite similar reasons for their mistrust in companies, The Influential Americans® are more likely to say that a "lack of stability of the 'top' companies" is a major reason for their distrust of business. But, in what appears to be a potential source of comfort for the business community, this bellwether segment puts less weight on "declining product/service quality" as a reason for declining levels of trust.

Surveys by GfK Roper Consulting, GfK's team of consumer and public opinions trend experts, corroborate that consumers remain highly suspicious of corporations. Only 16% of the public, for example, feel corporate corruption will "get better" in the next five years, a decline of 9 percentage points from 2003, according to GfK Roper Reports® US.

"Trust is one of the most important factors that American corporations need to focus on if they are going to engage and retain their most loyal and influential customers," said David Krajicek, Co-President, GfK Custom Research North America. "American corporations find themselves at a critical juncture in the development of their individual brands. Communication and transparency are paramount moving forward for companies to shore up and rebuild levels of trust that have been flagging among American consumers. Specifically, by understanding what influential consumers in a particular category think, brands can identify opportunities for rebuilding trust in their target segments. For example, our findings among The Influential Americans® suggest product and service quality can also serve as building blocks for restoring trust."

Corporate Trust Across Industries

Trust levels vary by industry, with The Influential Americans viewing Technology companies as the most trustworthy with a trust level of 70%.

"With The Influential Americans' history of being leading indicators of mainstream technology adoption – which we've seen in recent years in their passion for smart phones and social networking – this finding is significant," explained Krajicek. "This indicates how technology innovations and improved product and service quality can help drive perceptions of trust.  Moreover, it suggests that technology companies will be seen as role models in this critical period in the economy."

The Influential Americans® also stand out for being less critical than the average American of embattled industries such as Insurance (44%) and Financial Services (45%). "The Influential Americans' role as word-of-mouth leaders – folks who are actively recommending products and services – means that, if approached correctly they could be allies in rebuilding trust in the financial services industry," said Doug Cottings, Managing Director, GfK Financial Services. "Strong endorsements, based on personal experience, could help companies break through the clutter and build business."

The GfK Custom Research North America 2011 Corporate Trust Survey

The GfK Custom Research North America 2011 Corporate Trust Survey was conducted using GfK Roper Omnibus Services OmniWeb® from May 6 to May 8, 2011. This national online survey is based on interviews with 1,000 Americans age 18 years and older. The data have been weighted to match national online norms of age, sex, education, race and geographic region.

About GfK Custom Research North America

Headquartered in New York, GfK Custom Research North America is part of the GfK Group. The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in three business sectors—Custom Research, Retail and Technology and Media. The no. 4 market research organization worldwide operates in more than 100 countries and employs over 10,000 staff. In 2010, the GfK Group's sales amounted to EUR 1.29 billion. For more information visit www.gfkamerica.com. Follow us at www.gfkinsights4u.com or on Twitter @gfkamerica.

SOURCE GFK Custom Research North America