Automobile association leads UVic brand index

The Canadian Automobile Association has taken over top spot in the annual Brand Trust Index published by the University of Victoria’s Peter B. Gustavson School of Business.

It passed Mountain Equipment Co-op, which was No. 1 last year and the year before that. Costco finished in third.

The index, in its fourth year, was created to show how much trust influences consumers in their spending decisions and reflects the business school’s emphasis on responsible leadership.

Saul Klein, dean of Gustavson School, said the index is “about putting out a message that trust is important and the way to build trust is by acting responsibly.”

The index examines three kinds of trust. Functional trust is about whether a brand delivers on its promises — is it reliable, of good quality and does it provide value for money?

Relation trust refers to how a brand treats its customers and about their experience with the brand. This includes if it communicates honestly, fixes things when something goes wrong and respects privacy.

Values-based trust can cover everything from protecting the environment and community support to how employees are treated. “We think over time, that is the one that is going to become more and more important,” Klein said.

There is a strong business case for acting responsibly, he said. “Consumers aren’t going to do business with organizations they don’t trust.”

Data shows that there is a strong correlation between trust and likelihood to recommend a brand, Klein said.

Building trust is about the functional and relational aspects of your business, he said. “But ultimately it’s about what you are doing for the greater good and what are your values, and how do those align with what people are looking for.”

Examining trust shows that being successful financially and contributing to the broader social welfare can take place at the same time. “We are saying that doing good for society is actually in your own commercial interest,” Klein said.

Customers are increasingly looking to spend their money with an organization with a broader sense of purpose, Klein said. This comes at a time when it is more difficult for brands to stand out on a purely functional basis, he said. In that case, a company’s values are the differentiator.

The index measures national brands only. Researchers assembled 299 brands in different categories. It contracted the work of surveying 6,342 consumers to a market research company, which made sure it provided representative results of Canada’s population.

Fairmont Hotels & Resorts finished fourth in the index, followed by home retailing giant Ikea, CBC/ Radio Canada, which jumped from 16th to sixth, Shoppers Drug Mart/Pharmaprix, Home Depot, which jumped from 37th to No. 8, Marriott Hotels and WestJet.