UK’s most trusted companies revealed

MORE than half of consumers will pay a premium to the company they
believe has the best reputation, even if they can buy a product or
service cheaper elsewhere, a new survey published today
reveals.

And the Confederation of British Industry survey found that
Yorkshire-based supermarket group Asda is among the top six
companies with the best reputations among shoppers. High street
favourite Marks & Spencer topped the poll followed by John
Lewis and Virgin.

Excellent customer service was cited by almost half of all
survey respondents (48 per cent) as the characteristic that most
helps a firm build its reputation.

Another third (36 per cent) said that products and services
always living up to expectations mattered most. Seven per cent said
a good reputation was down to being a good employer while four per
cent attributed it to brand appeal.

The survey, conducted by YouGov, reveals the 10 companies UK
consumers say have the best reputation. At the top of the list of
unprompted replies is Marks & Spencer, which gained almost
twice as many mentions as the next highest, John Lewis Partnership
– itself closely followed by the Virgin Group.

The next three highly rated companies were Tesco, Sony and Asda,
with Amazon, Apple, Boots and then the BBC completing the top
ten.

Among the 58 per cent of consumers willing to pay more to their
most highly regarded company, 43 per cent would pay up to five per
cent over and above a cheaper price, almost a third (29 per cent)
are happy to pay six to ten per cent more, while a one in six (16
per cent) would pay more than a 10 per cent premium.

Commenting on the findings, Richard Lambert, the CBI's
director-general, said: “What comes through in our survey is
that great reputations rest or fall on delivery. Whether the
promise is of quality, fun, value or luxury, the 21st century
customer is savvy enough to sniff out and avoid the shoddy or
disappointing. Environmental credentials and social responsibility
are also becoming increasingly more important to consumers'
purchasing decisions.

“M&S has coupled great products and customer service
with an ambitious but credible environmental and ethical campaign,
'Plan A'. This survey shows that, in addition to whatever
dividends it returns in higher sales and profits, the initiative
has considerably boosted the retailer's wider
standing.”

Overall, a large majority of the public (82 per cent) felt that
companies must work harder at restoring their reputations.

However two-thirds (64 per cent) said that, as long as a company
behaves responsibly and delivers good service, they don't mind
if it makes a big profit. And just under half (43 per cent) felt
that if company chiefs perform well they deserve to be rewarded
with a high salary (against 27 per cent who disagreed).

Most people (86 per cent) believed that companies perform an
important role in creating jobs and wealth in the UK.

The survey suggests that people are inclined to trust companies
best when they know more about them. Fifty seven per cent said they
sometimes act as an advocate for their company, talking positively
to others about its products or services.

Thirty eight per cent said they trust the company they work for
more than other firms, compared to only 11 per cent who said the
opposite.

Poor customer service was thought by two in five of respondents
to the YouGov survey (42 per cent) to most damage a good reputation
and a third (30 per cent) said that products not living up to
expectation were most to blame.

Scandals, such as fraud or criminal acts were considered by 17
per cent to be the most important factor. Only seven per cent said
big payments to executives did the most damage.

For a distrusted company to rebuild its reputation, 45 per cent
of consumers said the best thing for it to do is come clean and
publicly apologise. A further third (28 per cent) believed a
company's best policy was to compensate customers, while 11 per
cent said a change of management was required.

Eight per cent would be most persuaded to change their view
after reading positive stories in the press.

The banking and finance sector was cited by a third of consumers
(36 per cent) as most in need of restoring its reputation. This may
have increased due to the recent troubles of Northern Rock.

Almost a fifth (19 per cent) of consumers said transport
providers, such as bus, rail, coach and ferry companies most needed
a reputation boost.

Mr Lambert concluded: “It is clear that companies can never
be complacent. A great reputation takes a lifetime to build and
seconds to lose. But the picture painted by our survey and report
shows encouraging signs for businesses willing to go the extra mile
and demonstrates that a good quality reputation is worth its weight
in gold.”