NEARLY HALF OF ALL CORPORATE REPUTATIONS DECLINE AGAIN IN 2025 AS CONSUMERS TAKE OUT FRUSTRATIONS OVER HIGH PRICES

Rhea-AI Summary

According to the 27th annual Axios-Harris Poll 100 Rankings, corporate reputations continue to decline in 2025, with 46% of companies seeing decreased ratings while only 37% improved. The study reveals consumers' growing frustration with companies' response to inflation, with 77% of Americans believing companies are selling lower-quality products at higher prices and 70% suspecting businesses of exploiting inflation for profit gains. Trader Joe's secured the top position, followed by Toyota and Arizona Beverage Company, highlighting consumers' preference for value-focused brands. The survey, based on 25,000 Americans' responses, shows that 63% have stopped patronizing businesses due to high prices, while 54% cited quality concerns. Quality emerged as the most crucial factor in company reputation, followed by customer service, employee treatment, and pricing. [ "Trader Joe's experienced a significant reputation score increase (+3.5) to reach #1 position", "Value-focused companies like Arizona Beverage Co. (with 99-cent price policy) emerged strongly in rankings", "79% of consumers recognize and reward brands prioritizing consumer wallets" ]

Positive

• None.

Negative

• 77% of Americans report companies selling lower-quality products at higher prices
• 70% believe companies are exploiting inflation to increase profit margins
• 48% of consumers say product quality is falling behind current prices
• 69% report noticeable decline in everyday item quality
• 63% stopped doing business with companies due to unreasonably high prices

Insights

Market Research Analyst

Consumer frustration with inflation has damaged corporate reputations, with value-focused companies like Trader Joe's gaining ground while 46% of companies saw reputation declines.

The latest Axios-Harris Poll 100 Rankings reveals a significant deterioration in corporate reputations, with 46% of companies experiencing declines compared to only 37% showing improvements. This trend directly correlates with persistent inflation and consumer price sensitivity.

The data shows a profound consumer trust crisis around pricing and value. An overwhelming 77% of Americans believe companies are delivering lower-quality products while raising prices, and 70% suspect businesses are exploiting inflation to expand profit margins. Additionally, 60% believe companies will use tariffs as an excuse to implement excessive price increases.

This consumer sentiment has created tangible business consequences, with 63% of Americans reporting they've stopped patronizing businesses due to unreasonably high prices and 54% citing quality concerns. The research demonstrates that perceived value has become the dominant factor in corporate reputation, explaining why Trader Joe's claimed the top position with a 3.5 point score increase.

Particularly telling is that 48% of consumers believe product quality is falling behind price increases (versus just 22% who feel the opposite), and 69% report noticeable quality declines in everyday items. Meanwhile, consumer interest in AI integration has decreased, with 47% not finding it important for companies to incorporate AI – a 5% increase from 2024.

These findings signal that investors should carefully evaluate how companies in their portfolios are balancing price increases with maintaining quality and value perception. Businesses successfully navigating this inflation environment by prioritizing consumer value – like Trader Joe's, Toyota, and Arizona Beverage Company – are being rewarded with enhanced reputational capital.

Many companies fail to fulfill consumer needs as inflation has shifted America's focus and priorities toward seeking value and spending more carefully.

This, according The Axios-Harris Poll 100 Rankings on Corporate Reputation released this morning, is why Trader Joe's ranked first - followed by other value-prioritizing brands like Toyota and Arizona Beverage Company - among the top 10 most reputable companies in the country this year.

NEW YORK, May 20, 2025 /PRNewswire/ -- Americans, fatigued by a third year of inflation, high interest rates, and tariff uncertainty, gave nearly half of all businesses poorer marks in the 27th annual study of corporate reputation conducted by Harris' (RQ) Reputation Quotient Survey. Among the top 100 index of companies, more declined (46%) than improved (37%), as consumers criticized businesses for passing along higher costs, delivering poorer perceived quality for their stretched dollars, and even capitalizing on tariffs to pad profit margins.

Of note:

• 77% of Americans say companies often sell lower-quality products and services while charging higher prices.
• 70% believe companies are taking further advantage of inflation to increase their profit margins.
• 60% feel companies will use tariffs as an opportunity to raise prices more than needed to boost profits.

This comes as Americans are split over whether the economy is improving and whom to blame for their personal financial situation. Among those who feel stuck (39%) and falling behind (28%) – a quarter (26%) fault business for their predicament. Among those with a declining opinion of business, their number one reason cited was "companies not doing enough to keep prices fair from inflation". And over half of all Americans said they had recently stopped doing business with a company due to unreasonably high prices (63%) and quality falling below expectations (54%).

"As opposed to COVID, when corporate reputations surged with breakthrough vaccines and reliable package delivery, businesses haven't answered this moment," says John Gerzema, CEO of The Harris Poll. "Americans don't see business with a solve for inflation. They want an ally."

Other key findings:

• Inflation fighters come out on top: Prioritizing the consumer paid off for some companies with Trader Joe's experience the sixth largest increase in score (+3.5) to take the top spot. New-comer Arizona Beverage Co. (99 cent price policy) emerges at #7.
  
  
• Perceived quality is falling: Consumers are twice as likely to say the quality of goods and services is falling behind their current prices than exceeding them (48% v. 22%). Especially as two-thirds (69%) report a noticeable decline in the quality of their everyday items.
  
  
• AI is still more hype than utility for most: More Americans today than last year don't find it important for companies to integrate AI into their products and services (47%, +5%-pts from May 2024), saying companies often overestimate their interest in AI-infused products (71%). With over two in five (43%) even against companies marketing that they use AI.
  
  
• Businesses should go back to the basics: American consumers point to quality as the most important consideration when considering company reputations today, followed by customer service, employee treatment and prices. As over three-quarters (79%) say brands with the best reputation are the ones prioritizing consumer wallets.

The Axios Harris Poll 100 is based on a survey of nearly 25,000 Americans in a nationally representative sample conducted January through March. The two-step process starts fresh each year by surveying the public's top-of-mind awareness of companies that either excel or falter. These 100 "most visible companies" are then ranked by a second group of Americans across the seven key dimensions of reputation to arrive at the ranking. If a company is not on the list, it did not reach a critical level of visibility to be measured.

For information on all companies and their ranking on the 2025 Axios-Harris Poll 100, or to purchase an in-depth analysis of a company's reputation, click here.

About The Harris Poll
The Harris Poll is one of the longest-running surveys in the U.S., tracking public opinion, motivations and social sentiment since 1963. It is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building 21^st century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. Learn more by visiting www.harrispoll.com and follow Harris Poll on Twitter and LinkedIn.

About Axios
Axios is a digital media company launched in 2017. Axios – which means "worthy" in Greek – helps you become smarter, faster with news and information across politics, tech, business, media, science and the world. Subscribe to our newsletters at axios.com/newsletters and download our mobile app at axios.com/app.

About Stagwell
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.  

Contact
John Gerzema
jgerzema@harrispoll.com 

Drew Higham
Drew.Higham@harrispoll.com 

Jacklyn Cooney
Jacklyn.Cooney@harrispoll.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/nearly-half-of-all-corporate-reputations-decline-again-in-2025-as-consumers-take-out-frustrations-over-high-prices-302460311.html

SOURCE Stagwell Inc.

FAQ

What are the key findings of the 2025 Axios-Harris Poll 100 Corporate Reputation Rankings?

The study found that 46% of companies saw reputation declines while 37% improved. Trader Joe's ranked first, followed by Toyota and Arizona Beverage Company. 77% of Americans believe companies are selling lower-quality products at higher prices, and 70% think businesses are exploiting inflation for profit.

Why did Trader Joe's rank #1 in the 2025 corporate reputation rankings?

Trader Joe's ranked first due to its value-prioritizing approach, experiencing a 3.5-point increase in reputation score. The company's success aligns with consumers' current focus on fair pricing and value during inflationary times.

How has inflation affected consumer behavior according to the 2025 Harris Poll?

63% of consumers stopped doing business with companies due to high prices, while 54% cited quality concerns. 77% believe companies are selling lower-quality products at higher prices, and 70% think businesses are exploiting inflation for profit gains.

What factors do Americans consider most important for company reputation in 2025?

Americans prioritize quality as the most important factor, followed by customer service, employee treatment, and prices. 79% of consumers believe the companies with the best reputations are those prioritizing consumer wallets.

How was the 2025 Axios-Harris Poll 100 conducted?

The poll surveyed nearly 25,000 Americans in a nationally representative sample from January through March. It used a two-step process: first measuring public awareness of companies, then ranking the 100 most visible companies across seven reputation dimensions.