Materials Archive

Detailed FindingsSurvey of Consumer Perceptions of Business Structure, Public Corporations and Cooperatives

Conducted July 24-28, 2003
By Opinion Research Corporation

Introduction

A coalition of cooperative organizations commissioned a survey of 2031 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.

Governance Structure: Findings

Respondents were read a list of corporate governance characteristics and asked if that characteristic makes 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

Respondents were given nine positive business attributes and asked if they agreed or disagreed whether each attribute 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;
64% agreed that co-ops offered the most competitive prices, compared to 58% for publicly traded corporations; and
A nearly equal percentage agreed that co-ops and publicly traded corporations engage in charitable giving: 57% for co-ops and 58% for publicly traded corporations.
Publicly traded corporations outscored co-ops only on marketplace choice. While more than a majority (53%) agreed co-ops offer consumers more choices in the marketplace, 62% agreed that publicly traded corporations did.

Consumer Preference for Cooperatives

Respondents 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 and 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;
51% were more likely to hold policies with a mutual insurance company; and
33% were more likely to buy a unit or home in a local housing cooperative. Although 43% said knowing that a housing unit was a co-op would make them less likely to purchase a unit or home, a majority of African American respondents were more likely to purchase a unit or home if it was a cooperative.

Other findings include:

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.
Urban/suburban and rural residents are about as likely to say knowing a business isa cooperative increases the likelihood of using its services or buying its goods. Urban/suburban residents are more likely to favor credit unions, while rural residents are more likely to favor electric co-ops and mutual insurance providers.

Perceptions of Farmer-Owned Cooperatives

Respondents were asked whether they agreed or disagreed with four statements about farmer-owned cooperatives. Perceptions of farmer-owned co-ops were particularly strong.

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;
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.

Familiarity with Co-ops

Asked how familiar respondents were with co-op structure and philosophy:

47% said they were familiar with co-ops;
30% said they were not very familiar; and
22% are not at all familiar.
Familiarity was higher among men than women, among 45-64 year olds compared to other age groups, and among adults in households earning more than $35,000 annually compared to lower income groups.

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