Canada鈥檚 most trusted brand is a company many motorists call when they are stranded at the roadside with a flat tire, or need a set of jumper cables to start a dead car battery in a snowy parking lot, according to new research.

The Canadian Automobile Association (CAA) has taken the top spot in the annual . The motor club, best known for providing roadside assistance, unseated Mountain Equipment Co-op (MEC), which ranked number two this year. The Vancouver-based outdoor equipment retailer was number one in 2017 and 2016.

The index ranks 299 Canadian companies and brands according to a sample of 6,342 consumer opinions on a range of brand value measures. Costco Wholesale, Fairmont Hotels & Resorts, and Ikea rounded out the top five most trusted brands, respectively, in 2018.

Saul Klein, dean of the Gustavson School, said it is no coincidence that the top three brands are membership-based. He points to the 鈥渢ight connections鈥� these organizations have with their members and 鈥渟tronger feedback loops鈥� as the key drivers that build up trust.

鈥淚t keeps them much more in tune with what the changing requirements are,鈥� Klein told CTV News Channel on Monday. 鈥淥ther organizations are more susceptible to short-term market pressures, whereas if you look at the top ones, they really are able to take a long-term view and build a trusting relationship with their customers.鈥�

Klein said the index measures three kinds of trust:

  • How a brand delivers on promises such as pricing, value, quality and innovation.
     
  • How a brand relates to consumers, including honesty, respect for privacy, and response when something goes wrong.
     
  • Finally, how a business ranks in terms of values-based trust. That includes environmental commitments, treatment of employees, and engagement with the community.

鈥淭here is a need for business to think about acting responsibly, not only because it鈥檚 the right thing to do, but also because it鈥檚 good for business,鈥� Klein said.

He said the index, now in its fourth year, has also demonstrated the importance of putting forward a strong response when a brand鈥檚 reputation is publically tarnished.

鈥淟ast year, we saw Samsung take a big drop. If you remember, it was about the phones kind of self-combusting,鈥� he said. 鈥淭hey are not back to where they were before, but they have significantly recovered. It鈥檚 about recognizing the problem, responding very well, very quickly, taking it seriously.鈥�

On the other hand, Klein points to the fallout of Volkswagen鈥檚 diesel emissions cheating scandal. The German automaker ranks 298 out of 299 on this year鈥檚 index.

鈥淭he stronger the violation, the slow speed of response to it, makes it very hard to recover,鈥� Klein said. 鈥淚 don鈥檛 think they (Volkswagen) took the issue seriously enough. There was a period of denial.鈥�

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