BBB Reports Americans' Trust in Business has Dropped in 13 of 15 Industries Examined

  
     
September 03, 2008

Consumers Say Least Trusted are Auto Dealers and Real Estate Brokers, but Banks are Quickly Losing Consumers’ Trust

Columbus, Oh - September 3, 2008 - Better Business Bureau announced findings from its second BBB/Gallup Trust in Business Index survey, noting American consumers say 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 that they regularly deal with, were commissioned by BBB and conducted by Gallup. Based on its findings 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.

"With only 33 percent or less of Americans reporting have a ‘great deal’ or ‘quite a lot of trust’ in 11 of 15 industries measured in the survey, it is very concerning" said Kip Morse, president, Better Business Bureau and BBB’s Center for Character Ethics. "And these trust levels are dropping rapidly as we have seen a 14 percent drop from last fall when we started taking these measurements. Our Center For character Ethics recognizes this community issue and we see it as a call to action for businesses, especially in an ailing economy—the 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.

“A Great Deal of Trust” + “Quite a Lot of Trust” = Most Trusted Grouping:

Key Industry Segments

Survey II – 4/08 Percentage of Respondents

Survey I – 9/07

Percentage of Respondents

Total Percentage Change –

From Survey I to II

Pharmacies and Drug Stores

59

65

-9%

Grocery Stores and Supermarkets

55

59

-7%

Banks, Financial Institutions and Stock Brokers

42

48

-12%

Home Improvement Stores

41

46

-11%

Office Supply Companies

33

34

-3%

Department Stores

31

37

-16%

Electronics and Appliance Stores

28

29

-3%

Health Care Insurers

26

26

0%

Contractors

24

27

-11%

Auto Repair and Maintenance Shops

24

27

-11%

Cell Phone and Wireless Service Providers

23

21

+9%

Gas Stations

22

26

-15%

Furniture Stores

19

22

-14%

Real Estate Brokers

13

16

-19%

Auto Dealers

13

16

-19%

Total Number of Adult Americans Surveyed

1003

1204


“Very Little Trust” + “No Trust” = Least Trusted Grouping:

Key Industry Segments

Survey II – 4/08 Percentage of Respondents

Survey I – 9/07

Percentage of Respondents

Total Percentage Change –

From Survey I to II

Auto Dealers

48

47

+2%

Real Estate Brokers

41

36

+12%

Health Care Insurers

37

37

0%

Cell Phone and Wireless Service Providers

32

32

0%

Auto Repair and Maintenance Shops

34

31

+10%

Gas Stations

30

22

+27%

Contractors

27

24

+11%

Banks, Financial Institutions and Stock Brokers

20

14

+30%

Furniture Stores

20

19

+5%

Electronics and Appliance Stores

14

13

+7%

Department Stores

11

8

+27%

Office Supply Companies

9

7

+22%

Home Improvement Stores

9

6

+33%

Pharmacies and Drug Stores

7

6

+14%

Grocery Stores and Supermarkets

5

4

+25%

Total Number of Adult Americans Surveyed

1003

1204


"We have seen the decline in consumer trust causing serious problems for businesses, but more importantly, it is an opportunity for businesses that understand the importance of trust and operate and lead with integrity to gain a competitive advantage as more and more consumers demand trust in the marketplace." added Morse.

When asked what factors affect their trust in businesses, 77 percent of consumers cited increasing prices of food, healthcare 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 shows 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 and Drug Stores, and Banks, Financial Institutions and Stock Brokers.

About the Survey Methodology
These findings are part of the ongoing BBB/Gallup Trust in Business survey. Gallup fielded the survey March 26 to April 20, 2008. The sampling included 1,003 respondents, 18 and older, randomly selected from across the U.S. The overall sampling error in the results is plus or minus three percentage points. For findings based on subgroups within the overall population, the margin of sampling error would be greater.

About BBB
BBB of Central Ohio serves Columbus and 21 surrounding counties as a leader in advancing marketplace trust by encouraging best practices, celebrating role models, and denouncing substandard behavior. BBB sees trust as functions of respect, ethics, intent, delivering results and addressing concerns. Businesses and charities that earn BBB Accreditation have agreed to live up to our high standards and principals for trust. BBBs provide free and easily accessible Reliability Reports on businesses, Wise Giving Reports on charities, educational information, objective advice, and dispute resolution of marketplace complaints. The first BBB was founded in 1912, and today a network of 128 local BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million businesses and charities. Please visit www.bbb.org for more information about BBB.

About Gallup
For more than 60 years, the Gallup Organization has been a recognized leader in the measurement and analysis of people’s attitudes, opinions and behavior. While best known for the Gallup Poll, founded in 1935, Gallup’s current activities consist largely of providing marketing and management research, advisory services and education to the world’s largest corporations and institutions.