The most trusted brands in Canada are the ones that make Canadians feel like they belong, according to the latest rankings from the University of Victoria's Gustavson School of Business.
Mountain Equipment Co-op, the Canadian Automobile Association and Costco topped this year's annual Gustavson Brand Trust Index, which evaluates 294 brands based on the level of trust among their customers. MEC and Costco maintained their positions at first and third in this year's rankings, while CAA made its debut on the list at No. 2.
Saul Klein, dean of the Gustavson school, said it's no coincidence that the top three organizations on the list are membership-based. "There's something about the membership-based organizations that allows them to keep a very close connection with their customers," Klein told CTV News Channel on Tuesday.
The list was compiled by surveying customers on their attitudes toward various brands based on three major criteria: how well the brand functions as a service, how well it treats its customers and how closely its values aligned with those of its customers.
"More trust leads to more loyalty, less price sensitivity and overall better satisfaction with the brand," Klein said.
The top 10 brands on the list are as follows:
1. Mountain Equipment Co-op
2. Canadian Automobile Association
3. Costco Wholesale
4. Fairmont Hotels & Resorts
5. IKEA
6. Chapters/Indigo
7. President's Choice
8. Interac
9. Cirque du Soleil
10. WestJet
CAA and Cirque du Soleil cracked the top 10 in their first time as part of the survey.
Chapters/Indigo and WestJet made significant improvements over last year, when they were ranked in the 50s.
Despite a swirl of negativity around airlines in general lately, Klein says WestJet has weathered the storm and come out looking very good, especially by comparison to other carriers. "Even though they had some problems, their relationship to their customers is so strong, and their ability to respond when something goes wrong is so powerful, that it keeps them very much at the top," Klein said.
Klein also hailed the success of Interac, which has established a reputation as a simple, reliable and straightforward service.
"Interac is just incredibly efficient at what it does," Klein said, adding that it's "the most trouble-free basic service you can imagine."
The index was compiled using a statistically representative sample of 6,560 consumers, who were asked to rate 294 Canadian companies and brands. The brands are drawn from 26 different industries.
Volkswagen scored the lowest on the list, followed by Kentucky Fried Chicken and Walmart.
