KPMG survey reveals reputation drives consumer demand
New research from KPMG Australia’s Reputation Advisory team reveals Australians care about the reputation of an organisation when thinking about buying goods and services. Over 85% of respondents said reputation was important when making purchasing decisions, with 50% saying they would not transact with companies they believe have a poor reputation.
The KPMG Reputation Research 2022 surveyed 500 Australian consumers to understand what they think about certain business sectors, governments and their reputations, as well as how much trust they put into these organisations.
Interestingly, when it comes to determining an organisation’s reputation, the most important factors were the effective delivery of goods and services (62%), adherence to accepted ethical and moral values (57%) and a brand that they trust (56%).
Over a third (34%) of respondents said they would post on social media platforms if they thought an organisation was conducting business in a manner that was in opposition to their own personal beliefs or expectations. 82% responded that they care that businesses behave in a fair and reputable manner.
“Reputation clearly matters to Australian consumers and it is influencing their purchasing decisions. Managing your reputation can no longer be at the periphery of decision-making as we see that market share is directly linked to a company’s reputation. There is a big opportunity for organisations to demonstrate they are sharing value with the community and acting in an ethical and responsible way,” said Sarah Ramsey, director at KPMG Reputation Advisory.
Trust varies across sectors
Supermarkets is the only sector (compared to energy retailers, mining and resources, and banking and finance) that the vast majority (70%) of respondents believe to have a good reputation. A slightly higher rate (71%) trust supermarkets to behave ethically and to do what is right.
Less than half of survey respondents (47%) believe that the mining and resources sector has a good reputation and a similar number (48%) trust the sector to behave ethically and to do what is right. Just over a third (34%) say they distrust the resources sector.
Energy retailers have some more work to do to build trust and reputation, with only 42% of respondents believing that energy retailers have a good reputation and 52% trusting the sector to behave ethically and to do what is right.
“We are seeing a seismic change in community expectations as customers, investors and stakeholders are demanding that organisations are purpose-led and act in a responsible manner, while sharing value back with the community. To grow sustainably over the longer term, organisations should proactively manage their reputation with concrete plans that build trust with all their stakeholders,” said Sudeep Gohil, partner at KPMG Customer Advisory.
“It is encouraging to see a shift in the market as organisations truly understand the growing importance of reputation management and the positive impact it can have when done well. This is now an essential part of our customer advisory offering, and we are pleased to have the market-leading capability available to help our clients build trust and reputation with their customers and all their stakeholders,” he added.
… some behavioural data – what have I DONE different? This attitudinal stuff is for noobs. That goes for the Edelman Trust Barometer too.
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