An analysis of antecedents and consequences of trust in a corporate brand

Abstract

Purpose – The paper aims to present a comprehensive framework for understanding consumer trust in a corporate brand, incorporating both the antecedents and consequences of trust. The paper also seeks to account explicitly for the differences in antecedents and consequences of trust found among customers and among non-customers. Design/methodology/approach – Data were obtained from 308 face-to-face interviews conducted in Germany. Structural equation modelling was used in order to test the proposed hypotheses. Findings – The results indicate that competence and credibility have a high explanatory power as antecedents of trust. Trust has a considerable impact on supplier selection for existing and new products, as well as on the word-of-mouth (WOM) behaviour of consumers. There are strong differences between customers and non-customers in terms of the antecedents and consequences of trust in a corporate brand. Research limitations/implications – In order to generalise the findings, the model needs to be tested with other samples and research objects. Marketing research into trust should focus on competence and credibility as important antecedents of trust. The findings propose that trust has positive effects on purchase intention and WOM behaviour. Marketing research should pay more attention to the role of trust in gaining new customers. Practical implications – Because of the positive influence on marketing success, managers should focus on trust-building activities that centre on competence and credibility primarily with current customers. However, trust also seems to be a good device to gain customers from competitors. Originality/value – The contributions of the paper are, firstly, a more complete framework of trust that analyses both antecedents and consequences of trust simultaneously. Secondly, the study allows a direct comparison of the difference in antecedents and consequences of trust between customers on the one hand and non-customers on the other.