April 2010 Author: MMC Source: fast.MAP, Mintel, DMA, Telegraph.co.uk, Marketing insights – consumer trust Which professions and organisations do consumers.

April 2010

Author: MMC

Source: fast.MAP, Mintel, DMA, Telegraph.co.uk,

Marketing insights – consumer trustWhich professions and organisations do consumers trust the most – and the least? This report examines UK consumers’ attitudes to MPs, banks, the police, their local council, teachers, advertisers and more. MPs and the banking sector fare badly, but teachers and police score well. However, consumer trust in many professions has dropped across the board when compared with data from 2008 and 2009.

Introduction

Consumer trust• MMC has commissioned fast.MAP to monitor consumer trust in different

organisations and professions, across three different periods in 2008 to 2010.

• Methodology –fast.MAP sent out a trust survey to 1,017 panel members that echo the demographic profile of the UK in April 2010. The survey repeated questions that fast.MAP had put to panels of similar size and same demographic make-up in December 2008 and August 2009, enabling period-on-period analysis.

• The panel members were asked to rate how much they trust various organisations, individuals and groups including:

Source: fast.MAP MMC Consumer Trust Study 2010

• Bank• Your Bank

• MPs• Your MP

Consumer mistrust – the triggers

Negative press surrounding the global credit crunch• Negative press surrounding the global credit crunch crisis and the financial market and banks’

inflated pay rates has resulted in low consumer confidence in the financial services sector. A survey conducted by the DMA researching consumers attitudes to banks, insurance companies, and investment businesses and services reveals that public trust in the financial sector has dropped below that of the media. In fact the only sector with a lower level of public trust is the government.

Banks fail to supply enough affordable mortgages and loans• The banks have had to tighten their lending criteria. The BOE base rate is at an all-time low,

however, banks are not passing on this rate to their customers. Consumers judge the financial industry by what it is doing and banks not supplying affordable mortgages and loans creates bad will.

MPs exposed for claiming for personal expenses on their work expenses

• On 15 June 2007 MPs were ordered to release details of how much taxpayers’ money they claim for running a second home under headings such as mortgages, food, service charges, utilities, telecoms bills, furnishings, service charges, cleaning, insurance and security. On 25 October 2007 figures were released revealing that MPs had claimed £87.6m in allowances during the previous year, a rise of 5% on the sum for the previous 12 months. On 8 May 2009 the Daily Telegraph prints details from receipts submitted by members of the Cabinet in support of claims running into thousands of pounds. This is the start of a series of articles detailing ‘the scandal of members’ expenses across all parties’.

Source: www.dma.org.uk/news, Mintel Report British Lifestyles – Consumer Choices in a Fear Led Economy April 2009, Telegraph.co.uk

http://www.dma.org.uk/news

• Trust in organisations has gone down across the professional spectrum.

• Only 14% of respondents said that their trust had not gone down in any of the organisations listed.

• MPs, the government, banks in general, your MP and your local council lost most trust among respondents in the last year.

• 71% of respondents said they trust MPs in general less than they did a year ago.

• 63% of respondents said they trust the government less than they did a year ago.

Consumer trust in organisations/groups has fallen over the past year

From the following organisations, please select all those which you trust less now than you did a year ago.

However, consumers mistrust MPs and the government the most

• 72% of respondents said they completely mistrusted/ mistrusted MPs.

• 68% of respondents said they completely mistrusted/ mistrusted the government.

• Organisations/professions respondents mistrusted the least were the police and school teachers with

only 20% saying they completely mistrusted the

police and only 11% saying they completely mistrusted school teachers.

How much do you trust the following organisations/profession? Please rate each profession/organisation between 1 and 5 where 1= complete mistrust and 5 = complete trust

Base: 1,017 responses 2010 Source: fast.MAP MMC Consumer Trust Study 2010

Completey Mistrust/Mistrust (1/2)0%

10%

20%

30%

40%

50%

60%

70%

80%

72%

68%

64% 63%

52%

47%

25%

21% 20%

11%

MP's

The government

Marketers

Advertising messages

Religon in general

Banks

Your local council

Your religon

The police

School teachers

Consumers trust school teachers, the police and their religion the most

• 50% of respondents said they completely trusted/trusted school teachers.

• 45% of respondents said they completely trusted/trusted the police.

• Only 7% of respondents said they completely trusted/trusted the government and only

5% of respondents said they completely trusted/trusted MPs.

How much do you trust the following organisations /profession? Please rate each profession/organisation between 1 and 5 where 1= complete mistrust and 5 = complete trust

Base:1,017 responses 2010 Source: fast.MAP MMC Consumer Trust Study 2010

Completely trust/trust (4/5)0%

10%

20%

30%

40%

50%

60%

50%

45%

29%

19%17% 16%

13%

7%5% 5% 5%

School teachers

The Police

Your religon

Banks

Your local council

Religon in general

Your MP

The government

MP's

Marketers

Advertising messages

fast.MAP MMC Consumer Trust Study 2010

Which organisations and professions do people trust? Key findings

Key findings: Banks

• Only 3% of respondents said they completely trusted ‘banks’.

• 47% of respondents said they didn’t trust banks or completely mistrusted ‘banks’.

• The percentage of respondents who said they didn’t trust banks or completely mistrusted banks has grown +15% since December 2008.

• 12% of respondents said they completely trusted

their bank. This has gone down 5% since December 2008.

• 25% of respondents said they completely mistrusted or mistrusted their bank.


Key findings: MPs

• Only 1% of respondents said they completely trusted MPs.

• 43% of respondents said they completely mistrusted MPs.

• The percentage of respondents who said they completely mistrusted their MP has actually fallen since December 2008, however, the percentage of respondents who said they mistrusted their MP has risen 10% since December 2008.

• 2% of respondents said they completely trusted their MP – down -3% since December 2008.

• 31% of respondents said they completely mistrust their MP – up 6% from Dec 2008.

• 25% say they mistrust their MP.Source: fast.MAP MMC Consumer Trust Study 2010

Key findings: Banks versus Your bank MPs versus Your MP

Banks

• Consumer trust in ‘their bank’ is higher than consumer trust in ‘banks’.

• 12% say they completely trust ‘their bank’

compared to only 3% who say they completely trust banks.

• 22% say they completely mistrust banks compared to only 11% who say they completely mistrust their bank.

MPs

• Consumer trust in their MP is higher than consumer trust in MPs in general.

• 42% of consumers say they completely mistrust

MPs. Only 31% say they completely mistrust their MP.


fast.MAP MMC Consumer Trust Study 2010 Which professions and organisations

do people trust? Results


Trust in banks has gone down since April 08• 33% of

consumers were neutral regarding their trust in banks.

• 47% said they completely mistrusted or didn’t trust banks, up 6% from Dec 2008.

• Only 3% said they completely trust their bank and

16% trusted their bank, which is down

from 25% in Dec 2008.

How much do you trust the following organisations?

Please rate each profession/organisation between 1 and 5 where 1= complete mistrust and 5 = complete trust

BANKS

Base:1,017 responses 2010

22%

25%

33%

16%

3%

20%21%

31%

25%

3%

0%

5%

10%

15%

20%

25%

30%

35%

Completelymistrust

2 3 4 Completelytrust

Apr-10

Dec-08

+10%%%+19%

+6%

-36%

0%

Source: fast.MAP MMC Trust Study 2010/2008

Consumer mistrust in ‘their bank’ has increased since December 2008

• 42% of consumers say they completely trust or trust their bank, this is down

13% from Dec 2008.

• The percentage of consumers who are neutral about trust in their bank has gone up

to 31%, this is an

increase of +55% from oDec 2008.

• 26% of consumers say they mistrust their bank, this has remained fairly static when compared to Dec 2008.

How much do you trust the following organisations ? Please rate each profession/organisation between 1 and 5 where 1= complete mistrust and 5 = complete trust

YOUR BANK


0%

+7%

+55%

+21%

-29%


43% of consumers completely mistrust MPs• Only 1% of

consumers say they completely trust MPs

and 4% say they trust MPs, down from 12% in Apr 2008.

• 43% say they completely mistrust

MPs, down 4% from Dec 2008. However, consumers who say they trust MPs went

up to 29% from

10% in December 2008.


MP’s


43%

29%

22%

4%1%

47%

19%21%

12%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Completelymistrust


Apr-10

Dec-08

-9%

+53%

+5%

-66%

+0%


Consumer mistrust in their MP has gone up • Only 2% of

consumers say they completely trust their MP, this is down 3% from Dec

2008. 11% say

they trust MPs,

down from 8% in Dec 2008.

• 31% say they completely mistrust their MP, this is up

6% from Dec 2008.

• 25% say they mistrust their MP, up 8% on Dec 2008.


YOUR MP


31%

25%

28%

11%

2%

25%

17%

34%

19%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Completelymistrust


Apr-10

Dec-08

+24%

+47%

-18%

-42%

-60%


fast.MAP MMC Consumer Trust Study 2010 Trust in Banks versus Your bank

Trust in MPs versus Your MP


Consumer trust in banks versus your bank

• Consumer trust in their bank is higher than consumer trust in banks.

• 12% of consumers say they completely trust their bank, compared to

only 3% who say they completely trust banks.

• 22% of consumers say they completely mistrust banks, compared to only

11% who say they completely mistrust their bank.


Banks v your bank


22%

25%

33%

16%

3%

11%

15%

31%

30%

12%

0% 10% 20% 30% 40%

Completelymistrust

2

3

4

Completelytrust

Your bank

Bank

9% difference

14% difference

2% difference

10% difference

11% difference


Consumer trust in MPs vs your MP

• Consumer trust in their MP is higher than their trust in MPs in general, however, only

2% say they completely trust their

MP and only 1% say they completely trust MPs.

• 43% of consumers say they completely mistrust MPs compared

to only 31% who completely mistrust their MP.


Banks versus your bank


43%

29%

22%

4%

1%

31%

25%

28%

11%

2%

0% 20% 40% 60%

Completelymistrust

2

3

4

Completelytrust Your MP

MP

1% difference

7% difference

7% difference

4% difference

12% difference


Constant re-qualification of the panel to ensure that background variables are updated. Differences from initial recruitment can result in being removed from the panel The consumer panel comprised 1,017 adults recruited from the 30,00 fast.MAP wholly-owned, closed panel whose profile echoes that of the UK’s population profile in age and gender. Demographic data, collected via online lifestyle survey, made it possible for only people who are both mail and internet responsive to be selected for the panel. This pre-existing data also makes it possible for fast.MAP to examine in detail the demographics of a group of people who respond to a question in a specific way. For example, it might choose to investigate their age, sex, income, family or marital status to establish whether there are any significant similarities. The advantage of the fast.MAP panel - which has been running for more than eight years and has achieved accurate results for marketers within sectors including automotive, charity, finance, catalogue and mail order, telecomm, internet, fast moving consumer goods and medical - is that it is extremely representative of a direct marketing-responsive audience. It is used by direct marketing, marketing, advertising and sales promotion agencies and brands to gain feedback on marketing, advertising (print/ web/ mail/ video/ radio) or sales activity, e.g. testing different creative treatments, scripts or envelopes; list selection; data planning and purchase and media planning. It is now possible to reach far more people for research purposes via the internet than the telephone, because so many households have registered for the Telephone Preference Service (TPS). Online research offers many benefits. Two of these are overwhelmingly important for the fast.MAP Marketing-GAP study. One is the availability of the wealth of demographic and lifestyle data on panel members, which allowed the profiling of cluster groups of those who respond in specific ways. By relating these profiles back to the database, it was possible to identify and quantify the number of other individuals who fitted the same profile. The second benefit is that the research was done in real-time to gain fast, continuous feedback. This means that, for example, if people change their views following, say, a Government announcement, a disaster, a product recall, or a rise or fall in the interest rate, it is possible to instantly track this change and factor its effect into the findings.

AppendixDetails of research surveys and terms used

ValidityWhen looking at the validity of research findings four things are of prime importance – recency; sample size (that a statistically relevant number of people took part in the survey); whether the respondents form a representative sample; and the manner in which the question is posed. The research was conducted among a very large sample of 4,000 consumers and is therefore more statistically relevant than similar research done among a smaller sample: The bigger the panel, the more accurate the results. Since the order in which multiple choice answers appear can influence response (it has been shown that for some individuals items higher up a list are more likely to be selected than those lower down) the order items appearing on all multiple choice lists was randomly changed throughout the survey, to avoid bias. Results can also be biased by the way in which responses are collected. A very obvious example would be for a face-to-face interviewer to ask the question: "Do you donate to a charity at least once a month?" Or even worse, for the question to be asked by someone easily identifiable as being connected with a charity. In such cases guilt will become a factor and people are likely to lie to save face, rather than admit they've not given to charity recently. With an online, anonymous survey, people are more likely to give honest answers to awkward questions.

RecencyOne of the greatest benefits of online research is that it takes place in "real time" so that at any moment it is possible to monitor response levels and observe progress. Since answers have been input by the respondents, the delay which occurs because written data has to be entered by a third party is avoided. Also, it has been shown that data entry errors are less likely to occur when people enter their own responses online. This is partly because a third party may make a data-entry error if they have difficulty in deciphering someone else's writing and partly because if an individual takes the trouble to fill in an online questionnaire, they are likely to enter the data more accurately than a keyboard operator whose attention may wander during monotonous, repetitive data-entry work. Using face-to-face surveys or paper questionnaires, it would take two or three months to achieve responses to 34 multiple-choice, complex questions from 4,000 people who mirror the UK population profile. This is because, it would be necessary to first identify individuals with the right demographic profiles and persuade them to participate. Then, either the questionnaires would have to be mailed or delivered or a qualified, nationwide research team would have to be assembled to do the interviews. Responses would be returned to base for input and data processing before results could be presented in a useable form.

AppendixDetails of research surveys and terms used

Mail Media Centre, the MMC logo and the Royal Mail cruciform are all trademarks of the Royal Mail Group Ltd. Marketing insights – consumer trust © Royal Mail Group Ltd 2010. All rights reserved.

Royal Mail Group is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London EC4Y 0HQ.

To find out more about the information in this presentation, please call us on

0800 917 0640

or email us at [email protected]

If you would like more details about the fast.MAP data, contact:David Cole, Managing Director, fast.MAP

0207 242 0702 or email at [email protected]

mailto:[email protected]

mailto:[email protected]

April 2010 Author: MMC Source: fast.MAP, Mintel, DMA, Telegraph.co.uk, Marketing insights – consumer trust Which professions and organisations do consumers.

Documents

trust survey

mmc consumer trust study

bank mps

financial sector

lower level of public

low consumer confidence

different organisations

financial services sector