What may be more even important than businesses making mistakes, is the reasons for the mistakes and how a brand works to them.
Every year, the Gustavson School of Business, run by its Dean, Dr. Saul Klein, provides new insights into consumer behaviour and brand perceptions in Canada.
The Brand Trust Index continues into its fifth year and in May 2019, they highlighted the importance of a company standing up for its values, through its words and more importantly its actions.
The Index also highlighted the effect that this has on consumer trust.
- Many businesses sourcing product domestically due to pandemic
- Amazon becoming popular shopping choice for Canadians this holiday season
- Many entrepreneurs believe their businesses won’t survive a second lockdown
The Index provides a view on failures on this front can have a strong impact on consumer trust overall and on the willingness to recommend a brand.
This view by Gustavson is supported by Mountain Equipment Co-op (MEC), being number one in this year’s ranking despite having taken flak for a lack of diversity in their advertising. MEC’s adept response to the concerns raised allowed them to retain consumer trust.
The top three most trusted brands in Canada are membership-based businesses.
Five new brands made the top ten, namely Home Hardware, Band-Aid, Interac, Columbia Sportswear, and Canadian Tire.
While trust in key institutions has eroded significantly over the past few years, the average brand trust score for all brands surveyed in the 2019 trust index has improved from last year.
Brands that violate the trust of customers through active malfeasance or a lack of transparency remain at the bottom of the rankings.
Eight out of 10 brands at the bottom of the Gustavson Brand Trust Index also ranked among the brands that Canadians are least likely to recommend.
Consumers are less forgiving if high-level malfeasance is involved and the brand is slow to admit its errors or to provide appropriate remedies.
The Index made note that female consumers tend to be more trusted than their male counterparts, while millennials are less trusting compared to any other generation.
Studies also show that values-based trust continues to be a key area for brands to be successful and differentiate themselves, in increasing customer loyalty.
The Gustavson School of Business is part of the University of Victoria, BC.
Click here for the full list and more information on Canada’s most trusted brands.