reputations
American business reputations with consumers are failing over prices and quality; steps you should take
AMERICANS, FATIGUED by a third year of inflation, high interest rates, and tariff uncertainty, gave nearly half of all businesses poorer marks in the 27th annual study of corporate reputation conducted by Harris' (RQ) Reputation Quotient Survey.
Among the top 100 index of companies, more declined (46%) than improved (37%), as consumers criticized businesses for passing along higher costs, delivering poorer perceived quality for their stretched dollars, and even capitalizing on tariffs to pad profit margins. Of note:
- 77% of Americans say companies often sell lower-quality products and services while charging higher prices.
- 70% believe companies are taking further advantage of inflation to increase their profit margins.
- 60% feel companies will use tariffs as an opportunity to raise prices more than needed to boost profits.
This assessment comes as Americans are split over whether the economy is improving and whom to blame for their personal financial situation.
Inflation
Among those who feel stuck (39%) and falling behind (28%) – a quarter (26%) fault business for their predicament. Among those with a declining opinion of business, their number one reason cited was "companies not doing enough to keep prices fair from inflation".
More than half of all Americans said they had recently stopped doing business with a company due to unreasonably high prices (63%) and quality falling below expectations (54%).
"As opposed to COVID, when corporate reputations surged with breakthrough vaccines and reliable package delivery, businesses haven't answered this moment," says John Gerzema, CEO of The Harris Poll. "Americans don't see business with a solution for inflation. They want an ally."
Other key findings:
- Inflation fighters come out on top: Prioritizing the consumer paid off for some companies with Trader Joe's experience the sixth largest increase in score (+3.5) to take the top spot. New-comer Arizona Beverage Co. (99 cent price policy) emerges at #7.
- Perceived quality is falling: Consumers are twice as likely to say the quality of goods and services is falling behind their current prices than exceeding them (48% v. 22%). Especially as two-thirds (69%) report a noticeable decline in the quality of their everyday items.
- AI is still more hype than utility for most: More Americans today than last year don't find it important for companies to integrate AI into their products and services (47%, +5%-pts from May 2024), saying companies often overestimate their interest in AI-infused products (71%). With over two in five (43%) even against companies marketing that they use AI.
- Businesses should go back to the basics: American consumers point to quality as the most important consideration when considering company reputations today, followed by customer service, employee treatment and prices. As over three-quarters (79%) say brands with the best reputation are the ones prioritizing consumer wallets.