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SMALL BANKS AND CREDIT UNIONS MAINTAIN CONSUMER TRUST
December 2nd, 2008
(New York, December 2, 2008)– Consumers have lost trust in brokerage and investment companies, insurers, and large national banks. However, according to a recent TNS survey even at this time of market turmoil, local/regional banks and credit unions maintain high levels of trust with consumers.
TNS, a leading marketing information group announced today the results of a survey of 1,000 US households regarding consumer trust. This survey was fielded during the period of October 29 through November 2, 2008. Within the financial services category, consumers trust banking and brokerage/investment houses the least.
“Given what we’ve seen in the markets since this past summer and fall, it is no surprise that consumers have lost trust in large financial institutions,” said Trish Dorsey, Senior Vice President, Brand and Communications, TNS. “The smaller local banks and credit unions clearly have a unique opportunity to connect with consumers right now. Moreover, they have an opportunity to do so in new ways given the way the media landscape is changing.”
Small, Local Banks and Credit Unions Maintain Consumer Trust
More than half of US consumers claimed their trust in larger national banks and brokerage/investment companies has declined over the past three months. Those same consumers indicated that their trust in smaller regional/local banks and credit unions has either held steady or actually improved (roughly 20 percent) during this same time.
When asked if there are financial institutions they could trust, fewer than 20 percent of respondents said they currently trust large national banks (20 percent), brokerage/investment companies (9 percent) and insurers (9 percent). Smaller regional banks (41 percent) and credit unions (45 percent) fared much better in terms of consumer trust.
Moreover, larger banks, brokerage companies, and insurance companies showed a dramatic recent fall, with more than half of respondents saying they are less trusting of these institutions than they were three months ago.
Most Trusted Media – Word of Mouth and Print Advertising
Outside of financial services, the public sector and the news media/advertising fared worst in the rankings compared to all other industries surveyed. Only 35 percent of respondents showed any level of trust in advertising.
Among various types of media (both brand-generated and consumer-generated) included in this same survey, word-of-mouth (e.g. conversations with family and friends) rated as the most trustworthy form of advertising. Consumers rated word-of-mouth as most credible (25 percent positive), trusted (32 percent) and consistently likely to provide the information they rely upon (26 percent). Moreover, consumers are more likely to feel that this channel is acting in their best interest whereas other channels are not.
“Online blogs, social networks and paid pop-ups scored poorly for credibility and trustworthiness – all hovering around the five percent mark for positive trust ratings,” commented Dorsey. “This could be due to one of several factors - do consumers distrust blogs as a whole because they may not know the persons writing on a blog? Do consumers make a link between the online channel in general and safety and security?”
Of the paid advertising investigated, print advertising outstripped television advertising as credible (21 percent compared to 11 percent), trustworthy (17 percent vs. nine percent) and consistently providing reliable information (18 percent vs. 10 percent). Print is traditionally seen as most trustworthy, given that it is usually more detailed and complete (potentially important in complex categories like financial services).
Over this time, trust in television and online advertising has decreased substantially; 36 percent and 35 percent of respondents stated that their trust has declined in the last three months. Trust in word-of-mouth, on the other hand, has increased by 16 percent.
So what’s a big brand to do? “Clearly you are who you are,” said Dorsey, “but for financial institutions, these shifts in trust are certainly worrisome as trusted brands will be the winners in the end. With the corresponding shifts we’re seeing in consumer trust of certain media, it will be more important than ever to remain true to your fundamental brand DNA and to communicate that in a way that is relevant to the consumer, in a media in which they want to engage.”
About TNS
TNS is a global market information and insight group.
Its strategic goal is to be recognized as the global leader in delivering value-added information and insights that help its clients make more effective business decisions.
TNS delivers innovative thinking and excellent service across a network of 80 countries. Working in partnership with clients, TNS provides high-quality information, analysis and insight that improve understanding of consumer behavior.
TNS is the world’s leading provider of customized services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management, Retail & Shopper and Customer Intelligence. TNS is a major supplier of consumer panel, media intelligence and audience measurement services.
TNS is the sixth sense of business. For more information, visit www.tns-us.com.
The Kantar Group
The Kantar Group is one of the world’s largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently acquired TNS – the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit www.kantargrouptns.com.
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