Category: economics | 經濟學 | 경제학 | 経済

Writing about consumer grievance came from a couple of things. I was watching a lecture by professor Robert Reich at Stanford and it reminded me of Edelman‘s 2025 Trust Barometer report ‘Trust and the Crisis of Grievance‘.

Edelman’s annual report is a barometer, a global snapshot of who and what consumers trust. As long as I can remember Edelman’s report into trust of institutions has been in decline, but the 2025 report highlighting consumer grievance marked a perceived acceleration.

TL;DR

• Why it matters: Most brands treat consumer complaints as a customer service headache to be managed by a chatbot. That is a massive commercial misstep. Grievance is not an admin burden; it is a raw, unvarnished map of what your audience actually cares about.
• What is changing: We are seeing the rise of a distinct global grievance culture. When trust in traditional institutions wobbles, consumers direct their frustration at the brands they buy from. If you look closely at these grievances, you see the exact gaps where your business is failing to deliver on its promise.
• The big picture: Two distinct trust economies now exist. There is the formal, corporate version presented in annual reports, and the real-world version lived by your customers. When the gap between the two grows too wide, the goodwill sitting on your balance sheet evaporates.

Global grievance

In the report Edelman posited that trust in institutions was no longer a universally shared civic resource. Around the world, it had become a luxury commodity that is heavily segmented by income and social class.

Putting my cards on the table

You the reader should question my interpretation as an enquiring mind. With that in mind, it makes sense to understand my starting viewpoint as I started to go through the subject matter. I agreed with the essence that Edelman’s research has captured. And the bifurcation of the economy is being baked into marketing plans that I have worked on over the past few years.

I have my doubts about their methods. I believe that their motives are good admittedly moderated by commercial considerations, but I did find myself questioning the techniques used and data transparency.

I set out to find high quality research that validated, or challenged the concept of consumer grievance.

Edelman’s original approach was triggered by the 1999 ‘Battle of Seattle’. The survey’s structural model was built upon the mid-1990s theories of Francis Fukuyama. Fukuyama argued that institutional trust was primarily driven by upward mobility, structured legal systems, and guaranteed economic prosperity. 

Technological and economic change saw Edelman move to a general population sample. They also moved from telephone interviews to online surveys. The number of respondents increased from 1,300 in five countries to 36,000 respondents.

2020 saw a change in survey design that broke the idea of ‘to do what is right’ into two attributes:

• Competence
• Ethical behaviour

Business did well on competency but less well in ethical considerations. Government, media and NGOs were viewed as lacking in both . Edelman compensated for this by studying proximal trust and employee trust.

Edelman introduced the concept of ‘trust brokering’ – an organisations capacity to support dialogue and bridge social divides.

The Genesis of Global Grievance

With a flair for drama and storytelling Edelman’s Trust Barometer links the decline of trust and the genesis of consumer grievance back to the 1999 ‘Battle of Seattle’ protests against the World Trade Organisation ministerial conference held in the city. While a wide coalition of both left and right political figures, NGOs, organised labour were there to protest against unfettered globalisation the wheels were already in motion.

…globalization is not new, but that the present era of globalization, driven by competitive global markets, is outpacing the governance of markets and the repercussions on people. Characterized by “shrinking space, shrinking time and disappearing borders”, globalization has swung open the door to opportunities. 

Breakthroughs in communications technologies and biotechnology, if directed for the needs of people, can bring advances for all of humankind. But markets can go too far and squeeze the non-market activities so vital for human development. Fiscal squeezes are constraining the provision of social services. A time squeeze is reducing the supply and quality of caring labour. And an incentive squeeze is harming the environment. Globalization is also increasing human insecurity as the spread of global crime, disease and financial volatility outpaces actions to tackle them.

The above quote came from the introduction to the 1999 Human Development Report (HDR) by the United Nationals Development Programme (UNDP).

As the 1999 HDR introduction alludes, by 1999 globalisation was not new and was already happening from Japanese consumer electronics to Korean shipbuilding. Instead globalisation was moving at a pace that institutions were no longer able to keep up with it or control it.

This viewpoint is supported by Professor Reich’s lecture on the factors driving the rise voter interest in populist leaders like President Trump. Reich outlines a four decades-long trajectory marked by:

• The decoupling of productivity from wages. The US Board of Labour & Statistics paper Understanding of the labor productivity and compensation gap, considers the gap to have opened up in the 1970s. The fissure since the 1970s was also documented by the Economic Policy Institute’s work The Productivity-Pay Gap. The Federal Reserve Bank of St. Louis published research showed how corporate profits decoupled from employee compensation from the early 2000s on.
• The Reagan era erosion of labour bargaining power. Similar erosion also took place in the UK under the Thatcher government.
• The concentration of corporate market power. Deregulation from the 1980s on, allowed the financial and corporate sectors to become politically and economically dominant. Reich argued that this created a system average citizens perceived as rigged to favour corporations and big banks over ordinary workers. The 2008 bank bailout while ordinary citizens faced foreclosures cemented this perception. This isn’t only a western issue. 44% of China’s workforce now work in the gig economy.
• The resulting financial exhaustion of the working and middle classes. American families employed three coping mechanisms to maintain their standard of living. First, they simply worked longer hours. Second, women entered the paid workforce in massive numbers, creating the dual-income household out of necessity. Third, the other measures reached their limit, they tapped into the equity in their homes, until 2008

The US Bureau of of Labour had three hypotheses for factors driving the labour compensation – productivity gap:

Globalisation: Increased offshoring shifted production and service activities to other countries. Consequently, income that might have previously gone to domestic workers was reallocated to intermediate purchases and foreign labour.

Increased Automation: As technological automation increases, the overall need for human labor input drops. When machines replace workers, the share of income dedicated to capital naturally increases relative to the share dedicated to labor.

Faster Capital Depreciation: Modern business capital, such as computer hardware and software, degrades or becomes obsolete much faster than the heavy machinery used in previous decades. Because these assets must be upgraded or replaced more frequently, a higher share of industry income must be diverted away from wages to cover these ongoing capital replacement costs

When the report explored specific industry sectors such as electrical power generation and supply, the divergence correlated with a fourth factor, deregulation. This happened to the US energy market in 1992.

The Energy Policy Act, 1992 created domestic competition. Incumbent local monopolies became more efficient or went under. Productivity was achieved through new technology and aggressive cost-cutting including layoffs. Workers produced far more value per hour, but because the company is fighting to keep prices low to compete, wages didn’t rise at that same rate.

Two trust economies exist

But all of these factors didn’t impact across society equally. What Edelman’s Trust Barometer acknowledged, but didn’t highlight at the time was the existence of two trust economies existing in the same space, but for different people.

The top quartile of income earners trusted the system. The bottom quartile didn’t. This was mirrored in findings by other organisations, notably the OECD’s Government at a Glance 2025 report and UNU WIDER Trust in a changing World 2025 paper.

There is a decline in governmental trust documented by the Pew Research Center Public Trust in Government: 1958-2025 – a consistent downward trend much longer than 1999, back as far as the mid-1960s for the American public, much earlier than Edelman’s work seems to suggest.

Business and consumer grievance

Edelman posits that businesses have become more trusted than governments. It’s a comforting anchor for a business that sells corporate reputation work. The reality may be different. The decline in government trust has merely set a very low bar according to research by Bentley University and Gallup. The rise of zero-sum thinking exemplified by Zero-sum Thinking and the Roots of US Political Differences paper for the National Bureau of Economic Research (NBER), will sweep business attitudes along as part of systemic distrust. The Carnegie Endowment for International Peace posits that this zero-trust thinking has brought conflict within the US itself and driven protests around the world – globalised consumer grievance.

The Bridging Divides Initiative (BDI) at Princeton University documented an increase in political violence risk factors across the US mirroring the 1960s and early 1970s . German insurance company Allianz warned that this behaviour represented a risk to large businesses across their operations and supply chains. This is outside and separate to government military actions like the US – Iran conflict or the Russian invasion of Ukraine.

There are problems inside organisations as well. Employer trust has been in decline according to Edelman. The causes are diverse and amplify consumer grievance:

• Globalisation
• Automation and LLMs
• Economic conditions

Managers are supervising but failing to manage. They struggle to coach or develop their staff sufficiently.

Media sector consumer grievance

The media business is seeing the impact first hand. Fear of deliberate deception is at the cente of the World Economic Forum Global Risks Report for 2025. That fear is driving growing divisions in society and between societies, further feeling consumer grievance. According to The Reuters Institute Digital News Report of the same year these concerns about deception are driving audiences away from ‘legacy’ media companies to platforms of editorialists and opinion formers across podcasts, YouTube and other social platforms.

Edelman claims that this audience migration is down to beliefs about the motivations of media organisations. 75 percent of high-grievance respondents believe news organisations would rather attract a big audience than report what people actually need to know. 67 percent believe the media prefers to support an ideology over informing the public.

On slight glimmer from Edelman’s data was that trust in traditional media dropped by four points, versus trust in search engines dropping by five. But that delta will be cold comfort to media executives watching their business being eaten alive by technology platforms.

Goodwill on the balance sheet

Goodwill on the balance sheet of a company tries to capture brand value, the value of customer relationships and wider stakeholder trust within a business. PwC research provided some empirical evidence to support RoI on the stakeholder trust component of goodwill. But Edelman overreaches in its 2026 Edelman Trust Barometer Special Report: Brand Growth in an Insular World report to try and do the same with brand value. In this case, Edelman tries to use survey responses, rather than observed behaviour data and the scientific method to try and overturn several decades of validated marketing science research.

Consumer grievance: so what?

It’s very easy to ignore consumer grievance as ethereal fiction or background noise. Being part of the solution can end up being part of the problem.

Brand purpose real talk

For some brands it make sense to pick a side, but if you do commit to the brand purpose. It may cost you, but if you really have a brand purpose, or ‘higher purpose’ as David Aaker called it, then the 30% opportunity cost in marketing effectiveness is worth it in your calculus.

Effectiveness expert Les Binet’s two question test on brand purpose makes a lot of sense:

• Would you still do it if you couldn’t publicise it?
• Would you still do it if reduced your long term profits?

If the answer to either question is no, then it’s not purpose driven.

Brand purpose can be a struggle to retrofit. After the success of Dove being re-positioned from a functional product to the ‘real beauty’ positioning; Unilever looked to replicate the effect with varying degrees of success.

You also need to be aware of brand purpose not being global. Apple, Meta and Nike have made decisions in Asia that are vastly different to what they do in western markets. There is no coherence or congruency in their world view. Neoliberal universal values died in corporations long before they were devalued in mainstream western political discourse. Both the online world and social media will shine a spotlight on this difference. This perceived corporate hypocrisy will increase consumer grievance and reduce consumer trust in the brand to do ‘the right thing’.

You could make the argument that Apple, Meta and Nike all fail Binet’s brand purpose test.

Outside of geopolitical differences, even the most basic demographic differences can be landmines for brand purpose. It’s an accelerant for consumer grievance and one that marketers at the likes of Unilever and P&G have either ducked, or got tonally wrong.

Patagonia is arguably the most prominent brand purpose led brand, yet it faces a slew of dilemmas. You could argue that Patagonia’s self description as being ‘a work in progress‘ is at best a temporary fix with an uncertain sell-by date during a time of consumer grievance.

Brand promise

The brand promise is the idea of what a consumer can expect from the product or service that they are purchasing. There is a temptation to reduce costs. You see this with automated services and reduced sized packaging.

If you are transparent about the trade-off consumers will self-select and be fine with it. Telecoms companies have been doing this for years.

• Plusnet – BT’s no-frills ISP
• Voxi – Vodafone’s self service brand that comes at a discounted price

Does your consumer journey penalise behaviour instead of rewarding loyalty. if it does, that will fuel consumer grievance. Audit these friction points and act on them. Fix underlying operations-related grievances and the customer lifetime revenue will take care of itself.

You can more content on consumer behaviour here.