Published 01-24-05
Submitted by Edelman
Trust Discount for U.S. Corporations in Canada and Europe
For the second straight year, the Edelman Trust Barometer found that opinion leaders are significantly less likely to trust individual U.S.-based global corporations operating in Europe and Canada, such as Coca-Cola (U.S. = 69% vs. Europe = 45% and Canada = 46%); McDonalds (58% vs. 25% and. 35%); Burger King (53% vs. 21% and 27%) P&G (74% vs. 44% and 49%); and Citicorp (CitiGroup) (56% vs. 25% and 30%). However, there is no trust discount for U.S. companies operating in Brazil, China or Japan. Nor does a trust discount exist for Asian and European companies in the U.S.; major non-U.S. corporations have similar trust ratings in every market, such as Shell (U.S. = 46% vs. Europe = 40%); Nissan (U.S = 68% vs. Japan = 63%); Danone (U.S. = 58% vs. Europe = 55%); and Siemens (U.S. 57% vs. Europe = 60%).
The study suggests that the trust discount for U.S. corporations in Europe and Canada is tied to opinion leaders' perceptions of U.S. culture, values and government. Thirty-two percent of Europeans stated that they are "less likely" to purchase U.S. products because of American culture. More than 40% of opinion leaders in Canada, Europe and Brazil are "less likely" to purchase U.S. products because of the Bush administration. American culture remains a relatively positive attribute in Japan, China and Brazil where 50% or more say it makes them "more likely" to purchase U.S. products.
Across all eight markets, trust is highest in technology and electronic companies (Microsoft, Samsung, Sony, IBM etc.) and there is no drag associated with any country of origin.
"The trust discount issue goes beyond the dislike of the Bush administration to a more serious question of American culture and values," said Michael Deaver, Vice Chairman, Edelman.
"American companies must particularly focus on building credibility in Europe and Canada, by being as local as possible in their face to the market, while engaging in continuous dialogue with local stakeholders."
Customized Approach Needed in Local Markets
Overall, the Edelman Trust Barometer finds a significant divergence of views with opinion leaders in the U.S., Brazil, China expressing more far confidence in institutions - business, government, NGOs and media - than do their counterparts in Europe, Canada and Japan. There are dramatic differences by market in the drivers of trust and in the sources that respondents turn to for credible information, including:
About the Edelman Annual Trust Barometer The Edelman Annual Trust
Barometer tracks the attitudes of 1500 opinion leaders around the world-- which institutions, companies, sources of information they trust, what drives that trust the credibility of institutions, sources of information and the drivers of trust. The sixth survey was conducted through 25-minute telephone interviews among 1500 opinion leaders: 400 in the United States; 450 in Europe - 150 each in the United Kingdom, France and Germany; 200 in China and 150 in Canada, Brazil and Japan between December 2003 and January 2004 by StrategyOne. Opinion leaders are defined as being between 35-64 years, college educated with a household income of more than $75,000 or equivalent and report a significant interest and engagement in the media, economic and policy affairs. There is no tracking data for Japan and Canada, which were added this year.
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