Costco shows how ‘trust, like, respect’ drives raving fans and revenues, while ‘lie, cheat, steal’ feeds distrust and dislike
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Consumers don’t trust big advertising. Not surprisingly, they do trust word-of-mouth. And today’s primary driver of information and opinion, social media, is really word-of-mouth on steroids.
So, brands can be elevated or decimated at warp speed. While social media is rife with disinformation, it’s also a powerful way to share brand preferences and truths (or falsehoods).
Costco has proven the value of word-of-mouth for decades. Lacking a formal advertising and marketing department, they’ve built a global powerhouse that’s both exceedingly popular and profitable.
Contrast that with the big-brand advertising agency depicted in the TV series “Mad Men.” Typical of the genre, Don Draper’s agency develops highly creative and clever ad campaigns that may or may not show brand truth and transparency.
I know this realm very well, having grown up working for “Mad Men West,” a major Denver ad and public relations agency that emulated the TV stereotype in many ways.
Just as in real life, Don Draper’s inner drive for truth ultimately creates conflicts within the agency. The first episode, “Smoke gets in your eyes,” focuses on their big-tobacco client efforts. By the fourth season, Draper clearly has soured on the industry, in part because of health findings. In episode 12, “Dump tobacco,” he takes out a full-page New York Times ad damning the tobacco industry and stating that his agency will no longer accept tobacco clients.
Unlike the setting for “Mad Men” in the sixties, communications channels are virtually unlimited and relentless. Social media and reviews are lie detectors of sorts—making reputation management a highly volatile and stressful undertaking.
‘Trust, Like, Respect’ vs. ‘Lie, Cheat, Steal’
The battle lines are clear in government, politics, and corporate America. “Lie, Cheat, Steal” has become the norm. Everywhere you look, misinformation and disinformation are driving power and greed. Brands making exaggerated or false claims too often succeed at selling people once. They do everything they can to get someone in the door to drive up sales, even as these customers exit as soon as they experience the disconnect between marketing claims and actual performance.
Financial statements look good because of the influx of new business—and shareholders, the only stakeholders many large companies cater to, are happy. What they don’t see is the rapid exit of customers to the competition.
It’s the same in our current national political theater—getting initial public support, only to see it wane quickly as people become convinced that “mad men” are at the helm.
When consumers see the truth, they not only leave but publicly express their dismay. Enter social media and other digital channels to help do that, along with traditional word-of-mouth.
Public dissatisfaction with big advertising is legion. However, even while consumers rail against it, they’re assaulted 365/24/7 with it. This creates a massive chasm between believability and trust, and reluctant patronizing of distrustful brands and companies.
A 2022 Forbes article emphasizes the malaise: “‘People hate advertising. They f@&*ing truly and actually, hate it … and this all the agencies’ and advertisers’ fault.’ Those comments were made by Boudica chief creative officer and former Hearst content chief Joanna Coles during a panel about the future of creativity at Advertising Week. Coles had said that consumers will take any opportunity to skip ads. Ironically, her co-panelist, Procter & Gamble Chief Brand Officer Marc Pritchard, the world’s biggest advertiser, has largely agreed with that observation.”
The article continues, “Marketers spend billions on ads, while, in the meantime, consumers tend to spend their lives trying to avoid them…This is not an accident. There is a gap between Madison Avenue and its customers, and brands are paying the price…Advertising is not trusted. The shocking fact is, that, 96% of people don’t believe that ads are truthful, according to Inc. Magazine.”
Martech.org points out in a 2025 article: “For decades, marketing relied on high-volume, broad-targeting strategies, prioritizing sales over relationships. While this approach achieved results, it also overwhelmed consumers with overly personalized, often intrusive messaging, diminishing trust and authenticity…Un-marketing offers a more innovative, consumer-focused alternative. Instead of bombarding audiences, it emphasizes relevance, respect and value-driven interactions.”
The article adds, “By resisting overly targeted ads and focusing on meaningful personalization, your brand can cut through the noise, build deeper connections, and regain consumer trust.”
In contrast, word-of-mouth reigns supreme. A graphic from ReminderMedia on Facebook referencing Neilsen says it simply: “Over 9 in 10 people trust referrals from friends and family over any other form of advertising.”
Truth and Trust outweigh grandiose claims more than ever
As consumers encounter ever-growing “Lie, Cheat, Steal” experiences, their yearning for “Trust, Like, Respect” is stronger than ever. Company takeaways include:
- An ever-increasing opportunity to beat the competition (and bottom-line predictions) by doing what’s right by all stakeholders—including customers/clients and employees. Think Costco, whose customer service is legendary. In addition, they honor their employees with good wages, favorable working conditions, and exemplify trust, likeability, and respect at every turn. Interestingly, Costco’s board voted to continue their Diversity, Equity, Inclusion (DEI) initiatives even as President Trump rails against them. (In my view, companies like Costco already are honoring DEI without needing to have formal policies in place.)
- Ultimately, painstakingly, the tide will turn back toward truth and trust—in corporate America, as well as government and politics. But, for now, consumers need to be on guard constantly.
- In the future, corporate America will be clearly delineated into two camps. The lie, cheat, and steal camp will see ever-accelerating rates of decline as consumers gravitate toward trust, like, and respect—choosing to patronize companies whose marketing claims reflect and match their performance.
Let’s get on with it. The sooner, the better.
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Mark Lusky Communications helps companies that honor customers, workers, communities, the environment, and stakeholder governance tell their story to the world. Interested? Let’s talk.
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