All businesses must face up to declining trust in large corporations. Many management actions, which are supported by financial markets, are adding to the problem, such as global corporations, downsizing, longer working hours, mergers and acquisitions, closing of unprofitable branches etc. While this analysis will not focus on these issues there is a growing body of research demonstrating that while the short term effects of these actions may be positive they can lead to long term problems due to a lack of customer, employee and other stakeholder trust. A paradox At the same time that trust in traditional institutions, including business, is declining there is the paradox that individuals appear to trust large brands more than smaller ones. This highlights that many issues impact on trust and that to trust a person or a brand there must be interaction over time.
Big brands benefit from more interactions with customers over time.
While qualitative research in general is being questioned the loudest complaints are reserved for focus group research. Yet focus groups continue to be the back bone of most qualitative research projects. Fuelling much of the discontent is the fact that qualitative research has not developed significantly since the 1970s and marketers want more information from tools which struggle to meet their demands. This does not mean that qualitative research should be seen as a poor tool. In fact discontent reflects the very opposite.