Trust takes a long time to build, but can be destroyed very quickly, according to the dean of the University of Victoria’s Gustavson School of Business.
Saul Klein, who unveiled the school’s second annual Brand Trust Index Thursday, said over the course of the last year an analysis of consumer behaviour suggests trust is hard won, but easily lost.
“We were able to verify that trust takes a long time to build. You can’t move up on trust very quickly. On the other hand, you can move down incredibly quickly,” said Klein. “If something goes wrong and if things go bad it can destroy you.
“And it will be a long slow build to try and recover that trust.”
The index was established last year to raise awareness of the role trust plays in the minds of consumers when making purchasing decisions. It also measures the relationships between social equity, trust, and advocacy for brands in Canada.
This year the index expanded its scope, nearly doubling the number of people surveyed to 6,384, expanding the number of brands people were asked about to 276 from 249 and expanding the number of categories rated by about a third.
Klein said they expanded the index because of the encouraging response they got last year and to include companies like Airbnb and Uber who are shaking up the establishment.
President’s Choice and Mountain Equipment Co-op tied for top spot on this year’s list, with Costco, Home Hardware and Shoppers Drug Mart rounding out the top-five most trusted brands in Canada.
Last year’s top brand, Tim Horton’s did not crack the top 10 this year, but remained No. 1 in the restaurants/takeout category.
Klein said because of the number of changes in methodology and means of analysis and the expansion in this year’s index it’s very hard to draw direct comparisons with the 2015 index.
“We are hoping that what we have now is the more stable measure that we will continue to roll out in the future,” he said.
Klein said one of the key findings over the last year was that consumers are changing what they value in a company.
Through analysis of the responses UVic has identified three dimensions of trust that reflect a change in consumer behaviour – evolving from trusting a brand based on product delivery and how it treats customers to basing choices on a brand or company’s values.
“[What] we think will play more of a role in terms of evolution is moving from buying the experience to where we think they will focus more on buying values and responding better to brands that are seen to be playing a more responsible role in society,” he said.
Klein said their results show a company’s values are no longer just a “nice to have” characteristic.
“We are able to show they are fundamentally important for what will drive consumer choice,” he said.
Trust Index
1. (tie) President's Choice
1. (tie) MEC
3. Costco
4. Home Hardware
5. Shoppers Drug Mart / Pharmaprix
6. Canon
7. DAVIDsTEA
8. Fairmont Hotels & Resorts
9. (tie) Band-Aid
9. (tie) Columbia Sportswear
