Trust Payoffs in Distrust Dominated Environments

Posted: 28 May 2011

See all articles by Rachel Talton

Rachel Talton

Synergy Marketing Strategy & Research, Inc.

Jagdip Singh

Case Western Reserve University - Department of Marketing and Policy Studies

Nicholas Berente

University of Notre Dame

Date Written: May 25, 2011

Abstract

Stoked by corporate failures from Enron to Lehman Brothers, consumers are increasingly skeptical of the motivations of industry sectors ranging from banking to health care. Do organizations dare build trust in times of distrust? Does it pay? Using institutional perspectives of trust production, we examine consumer perceptions of firm-level trust under varying institutional contexts, and the influence of firm-level trust on consumer loyalty in distrust- versus trust-dominated environments. We find that although firms produce less trust in distrust-dominated environments, firms that successfully build trust in distrust environments show a 50% increase in consumer loyalty relative to trust environments.

Keywords: Trust, Distrust, Institutional Theory, Consumer Loyalty

Suggested Citation

Talton, Rachel and Singh, Jagdip and Berente, Nicholas, Trust Payoffs in Distrust Dominated Environments (May 25, 2011). First International Conference on Engaged Management Scholarship, 2011, Available at SSRN: https://ssrn.com/abstract=1852643

Rachel Talton

Synergy Marketing Strategy & Research, Inc. ( email )

3634 West Market Street
Suite 104
Fairlawn, OH 44333
United States

Jagdip Singh

Case Western Reserve University - Department of Marketing and Policy Studies ( email )

Cleveland, OH 44106
United States

Nicholas Berente (Contact Author)

University of Notre Dame ( email )

Notre Dame, IN 46556
United States

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