The 1st annual study by Environics Communications of Canadians’ trust in information sources, organizations and leaders

2016 REPORT

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WHAT IS THE INDEX?

The Environics Communications 2016 CanTrust Index examines the sources that Canadians trust for important information

as well as their trust in organizations and leaders to do what is right for Canada and our society.

We examined several Canadian population segments including Newcomers and Primary Shoppers.

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WHO IS ENVIRONICS?

Environics Communications identifies and engages with audiences and influencers to build trust in companies and brands.

Environics Communications is a leading Canadian integrated marketing communications agency with approximately 130 team members in

offices in Toronto, Ottawa, Montreal and Washington, DC.

This survey demonstrates our commitment to knowing Canadians. The study is an online sample of 1,001 Canadians conducted between

February 29 to March 7, 2016. It is nationally representative by region, age and gender. The subsample of Newcomers (with 15 or fewer years in Canada) was 151.

The subsample of Primary Shoppers was 562.

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Executive Summary: Trust

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EXECUTIVE SUMMARY: TRUST

Canadians show highest levels of trust in not-for-profit organizations(NFPs), followed by news media.

• We see about one-third unsure of whether they trust, ordistrust, various aspects of Canadian companies/organizations.

• For large corporations, there is a higher proportion who‘trust very little’ (ratings of 1 out of 7).

Canadians place the most trust in their CEO, followed by their Mayor,then the Prime Minister. There is no “Trudeau halo”.

• There’s an interesting overlap within groups that trust their CEO a little and a lot, with home ownership a potential influencer of trust.

• Popular Mayors in Calgary and Toronto help boost the national score.

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Newcomers show higher trust levels in large corporations, governmentand political leaders.

• In this sub-sample we asked people who have lived in Canada for15 years or less and compared responses against national averages.

Word of mouth, product sampling, editorial content and consumerreviews yield the highest levels of trust among Canadians.

• Quebecers are less likely to trust word of mouth, and product sampling, but have higher levels of trust for many other information sources.

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Broadcasting, food retailers and banks are among the sectors/industries that yield the most trust; however, almost one-third indicate no trust for all industry categories.

• Quebecers have higher levels of trust in almost all industry sectors.

Social media platform firms and energy/pipeline companies are tied with low levels of trust.

Canadians are more likely to trust an organization if it creates local jobs, if they enjoy the company’s products or services, if open and accessible, and if it is Canadian-owned.

• Canadians aged 50+ tend to place more importance on these actions in determining their level of trust for them.

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Three-quarters of Canadians deem it important for CEOs of companies to be visible on social media.

• Canadians aged 50+ deem it very important.• Primary Shoppers are more likely to say it’s not at all important.

Approximately four-in-five would prefer product verification by 3rd party or government organizations, as a means to verify their quality promises.

• Newcomers are more likely to be in favour of verification.

Online reviews drive purchasing behaviour.• About four in five Canadians check online reviews prior to

purchasing a product and almost all (90%) claim it impacts their purchasing decisions.

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The Results

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TRUST IN ORGANIZATIONS

▶ Self-identified Primary Shoppers are more likely to be distrustful (22%)

▶ Newcomers are more likely to trust large corporations (37%)

Average(Trust Index):

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Canadians trust not-for-profits and news media most to do what is right for Canada

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Canadians place the most trust in the CEO of their own organization

TRUST IN LEADERS

▶ Newcomers are more likely than the average to trust their Premier (at 34%)

▶ Albertans, are more likely to trust theirPremier (41%), and Calgarians their Mayor (66%)

▶ Those with lower income ($15k-$25k) are less likely to trust in general (at 46%)

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Broadcasting, food retailers and banks among the top trustworthy industries

TRUST IN INDUSTRY▶ In general, Quebecers and Newcomers are

more trusting of most sectors. Primary Shoppers are the least trusting.

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Key drivers of trust: job creation, product enjoyment, and open communication

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Three-quarters of Canadians deem it important for CEOs to be on social media

CEO VISIBILITY & ACCESSIBILITY

Very important

76%

Not very importantSomewhat important

Not all important

31%

45%

18%

6%

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A majority prefer product verification by independent third-parties

QUALITY PROMISES OF PRODUCTS BY LARGE CORPORATIONS

I don’t know

I prefer verification by government inspectors or independent third-parties

I trust their quality promises

79%

11%10%

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Canadians place the most trust in word of mouth and product/service sampling

TRUST IN SOURCES OF INFORMATION ABOUT A PRODUCT OR SERVICE

Net:Editorial trust 55%

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Consumers prefer editorial content and word of mouth to get current news

PREFERRED INFORMATION SOURCESNET:Editorial trust 89%

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Traditional news sites are preferred, but mobile apps and online news sites also popular

PREFERRED ONLINE SOURCES TO RECEIVE INFORMATION

▶ While mobile apps and online-only news sites were 7% of Canadians’ first choice, they are part of the top 3 preferred online sources

▶ Newcomers are more likely to prefer online-only news sites as their 1st choice (at 13%)

▶ Young Canadians are more likely to prefer Facebook (30%), while those aged 25-49 prefer Twitter (5%), and online news sites (9%)

▶ Quebecers are more likely to prefer Facebook (18%) or another online source (9%)

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Most Canadians check online reviews from experienced consumers prior to purchase

Who is more likely to be influenced by the online reviews they read? • 95% Newcomers• 95% Married/common law• 97% Those with teenage kids in their household• 95% Those who trust large companies

Has reading an online review or comment from others who have purchased the same product or service you are seeking ever been the reason you have chosen to buy or not buy that product or service?

Yes84%

No16%

PREVALENCE OF CHECKING ONLINEREVIEWS PRIOR TO PURCHASE

Yes 90%

No 10%

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Appendix:

Profile of Respondents

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REGION

76% 24%Born inCanada

Born Elsewhere

58% speak English25% speak French8% speak Chinese

(incl. Mandarin/Cantonese*note: all other languages 5% or less

Age

18 to 24

25 to 34

35 to 44

45 to 5465+

8%

19%

22%

21%30%

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EDUCATION

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MARITAL STATUS

28% 7%

3%62%

Single,never married

Married/livingcommon-law

Separated/divorced

Widowed

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SOCIAL MEDIA USE

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EMPLOYMENT

66%employed

20% are retired5% are students5% are unemployed

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LIVING

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TENURE IN CANADA

*Note: Tenure in Canada only asked to people born outside Canada

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AVERAGE HOUSEHOLD INCOME

For more information please contact:

JOSH COBDEN • 416-969-2746 • jcobden@environicspr.com

VANESSA EATON • 416-969-2713 • veaton@environicspr.com

THANK YOU