Consumer Perceptions of Co-ops
In survey after survey, consumers rate co-ops
as more trustworthy than investor-owned corporations and they say
that they would prefer to do business with co-ops. The following
are some recent survey findings confirming the public’s trust
in and preference for co-ops.
2003 National Survey of Consumer Perceptions
of All Types of Co-ops
In 2003, a coalition of cooperative organizations
commissioned a survey of 2,031 adult Americans, conducted July 24-28
by The Opinion Research Corporation of Princeton, N.J., regarding
their perceptions of different corporate governance practices, their
perceptions of cooperatives and publicly traded corporations, and
the likelihood that they would do business with cooperatives. At
the 95 percent confidence level, the survey has a two percent margin
of error.
2003 Survey Findings
Governance Structure
When people were asked if the following governance characteristics
make a business more or less trustworthy:
- 68% said that a business that has consumers on its board of
directors is more or much more trustworthy;
- 66% said that a business that is owned by the people who use
the services of the company or buy its goods is more or much more
trustworthy;
- 63% said that a business that is governed by a board of directors
made up of the people who use the services of the company or buy
its goods is more or much more trustworthy;
- 62% said a business that is locally owned and controlled is
more or much more trustworthy; and
- 55% said a business that allows its customers to democratically
elect its board of directors is more or much more trustworthy.
Perceptions of Co-ops vs. Publicly Traded Corporations
When people were asked if they agreed or disagreed whether the following
attributes described co-ops and publicly traded corporations:
- 81% agreed that co-ops can be counted on to meet their customers
needs, compared to 65% for publicly traded corporations;
- 79% agreed that co-ops are committed to providing the highest
quality service to their customers, compared to 58% for publicly
traded corporations;
- 78% agreed that co-ops are committed to and involved in their
communities, compared to 53% for publicly traded corporations;
- 77% agreed that co-ops have the best interests of consumers
in mind when conducting business, compared to 47% for publicly
traded corporations;
- 76% agreed that co-ops run their businesses in a trustworthy
manner, compared to 53% for publicly traded corporations;
- 74% agreed that co-ops provide products and services that are
of high value, compared to 63% for publicly traded corporations;
- 68% agreed that co-ops are ethically governed, compared to
45% for publicly traded corporations; and
- 64% agreed that co-ops offered the most competitive prices,
compared to 58% for publicly traded corporations.
Consumer Preference for Cooperatives
When people rated whether knowing that a business is a cooperative
affects the likelihood they would use or purchase a product or service
being offered:
- 73% were more likely to buy products from a food cooperative;
- 71% were more likely to use a credit union;
- 69% were more likely to patronize independent, local businesses
that belonged to a buying co-op;
- 67% were more likely to buy electricity or telecommunications
services from a local, member- owned utility co-op;
- 56% were more likely to use day care services provided by a
parent-owned co-op;
- 55% were more likely to prefer health care services offered
by a consumer-owned cooperative; and
- 51% were more likely to hold policies with a mutual insurance
company.
Perceptions of Farmer-Owned Cooperatives
When people were asked whether they agreed or disagreed with the
following statements about farmer-owned cooperatives:
- 83% agreed (48% strongly) that farmer-owned co-ops help farmers
succeed;
- 82% agreed (48% strongly) that farmer-owned co-ops strengthen
rural communities;
- 64% agreed (39% strongly) that food products grown and/or processed
by a farmer-owned cooperative were of better quality than food
produced by other types of companies; and
- 69% agreed (33% strongly) that they were more likely to purchase
food products grown and/or processed by a farmer-owned cooperative
than those produced by other types of companies.
Other findings
Those who are already members of cooperatives are more likely
to favor co-op products and services; even among non-members, being
a co-op is a net plus.
- Those who are already members of cooperatives are more likely
to agree that the positive business attributes describe co-ops.
Still, more than half of non-members agreed all the statements
described co-ops.
- Adults 55 and younger are more likely to favor cooperative
products and services than adults 55 and older.
- African Americans are more likely to favor co-op products and
services than whites.
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