Businesses in India and China command high levels of trust among their domestic consumers, according to PR firm Edelman’s 2009 Midyear Trust Barometer.

The survey was conducted via telephone interview among 1,675 consumers (in the 25-34 and 35-64 age groups) over the summer in six countries: China, France, Germany, India, the United Kingdom and the United States.

At 75%, India recorded the highest level of trust in business out of the countries surveyed.  China followed, with 60% stating they trust business to do what is right.  48% of those interviewed in the United States trust business to do what is right, up from just 36% back in January.  Similarly, France saw a big jump, from 30% to 41%.

Unlike in previous years, when trust in business and in government tended to move in opposite directions, trust in government is now also on the rise, with a 12-point increase in the U.S. (30% to 42%) and a 13-point hike in India (42% to 55%).  Interestingly, 55% feel business hasn’t done enough to co-operate with government to solve the global economic crisis; only 38% lay this claim against government.

Trust in all the major industries surveyed went up across the six countries.  The technology sector is now 15 points ahead of the next most trusted industry – biotech/life sciences.  Banks, automotive, and insurance sectors stabilised during the period with banks being the no. 2 most trusted industry in China and India.  In the U.S.A., trust in every industry – with the exception of technology, which was already very high – experienced double-digit growth.  Trust in the pharmaceutical and auto industries each jumped significantly – from 39% to 53% and from 32% to 46% respectively.

96% of Chinese and 81% of Indians surveyed say their country is ‘headed in the right direction’, compared to 47% in America and Germany, 37% in the U.K. and 31% in France.  Furthermore, almost 70% of those in India and China rate the reputation of large multinationals as good or excellent compared to just 30% of Americans, 29% of Germans, 24% of French and a mere 13% of British.

When asked what companies could do to rebuild trust over the long term, treating employees well (94%), having transparent business practices (93%), maintaining quality products and services (93%), and communicating frequently and honestly (91%) top the list.

The public places great importance on business’s commitment to finding solutions for issues such as global warming, energy costs, and access to affordable healthcare; however, 71%, 70%, and 64% respectively feel business has not done enough to create solutions to these challenges.

Asia Research (http://www.asiaresearch.com.sg/), Asia’s Market Research & Market Intelligence Journal, has reported in its latest issue some of the findings of a survey it conducted earlier this year.  The online survey of more than 250 agency-side market researchers gives us insight into the changing face of the market research industry in light of the global economic difficulties. Some of the survey’s main findings are shared with you here.

2009 has been a challenging year for the market research industry in Asia – as in the rest of the world.  In the main, clients’ budgets are lower in 2009 than they were in 2008 – typically 30% lower (although, of course, there have been some clients who have increased their market research spend).

One of the main ways in which many market research companies have been affected has been in their personnel.  Particularly hard hit have been the regional hubs of Singapore and Hong Kong – as well as in India, which has been one of the fastest growing research markets in recent years.  Interestingly, though, only 17% of senior managers interviewed stated that they have a recruitment freeze and 58% say they will hire full-time staff – at all management levels – in the next six months.

More common than redundancies have been caps placed on remuneration – including pay freezes (39%) and removal of bonuses (32%).  Other cost-cutting measures implemented have included less capital expenditure (27%), less corporate travel for business development purposes (24%), a freeze on expansion (24%), and less advertising (19%).

Those working in Australia and Indonesian market research agencies have felt less affected than many others by the recession; unsurprising given that these markets have generally been less impacted by the global economic slowdown.

2009 can be classified as a hirers’ market, with a number of high quality market researchers currently unemployed as a result of companies’ retrenchment.  In fact, only 8% of those currently in employment feel their jobs are at risk in the coming six months (although 22% of senior managers expect to have to make further redundancies in the same period).

In spite the gloom, many of the market researchers surveyed are optimistic about next year.  Only 5% think that the prospects for the market research industry in 2010 will be worse (1% say ‘much worse’ and 4% say ‘somewhat worse’).  By contrast, 67% are feeling positive (42% saying ‘somewhat better’ and 25% saying ‘much better’).  The remaining 27% think things will be about the same or aren’t sure.

The sectors that will offer the best growth opportunities in 2010, in the views of 114 senior managers, are:

·          Healthcare/Pharmaceutical (46%)

        ·          FMCG/Consumer (39%) 

·          IT/Telecommunications (37%)

        ·          Banking & Finance (37%) 

·          Government (24%)

        ·          Media (17%) 

·          Travel & Tourism (16%)

·          Manufacturing/Industrial (14%).

An additional 69 clients – or market research buyers – were also asked a number of questions.  29% of these expect their budgets to increase next year, versus 11% who believe they will decrease. Of those expecting an increase, they think their budgets will rise by, on average, around 20%.

B2B International, like other market research agencies, has had to adapt its services and offerings to meet changing client demands.  What does remain, however, is our promise to work out the best way to meet your research objectives at a competitive price, adding value and insight wherever we can.