IDEAS home Printed from https://ideas.repec.org/p/mit/sloanp/3510.html
   My bibliography  Save this paper

The Trust Imperative

Author

Listed:
  • URBAN, GLEN L.

Abstract

Nearly 70% of Americans agree with the statement, "I don't know whom to trust anymore," according to a February 2002 Golin/Harris Poll1. Although trust in society and corporations seems to be at an all time low, now is a good time for businesses to embark on a trust-based marketing strategy. Increasing customer power will drive a new paradigm for marketing, a paradigm based on advocating for the customer by providing open, honest information and advice. At the same time, this customer power is reducing the effectiveness of old-style push-based marketing. Thus, the shift to trust-based marketing may be more of a mandatory imperative than an optional opportunity. Trust-based marketing involves much more than dropping millions of dollars on Super Bowl ads that say "trust us." Instead, it is an approach to marketing that shifts and deepens the relationship between a company and its customers. Rather than bombarding passive customers, a trust-based strategy creates a positive relationship with an increasingly loyal customer base. Trust-based marketing contrasts with traditional push-based marketing in the assumptions that it makes about customer. The old paradigm of push-based marketing assumed that customers did not know what was good for them. Under this old assumption, companies broadcast their hype to push products and services onto an ignorant customer base. The goal was to "push" products onto customers. This contrast between push-based marketing and trust-based marketing parallels McGregor's Theory X and Theory Y. (see Sidebar on Theory P vs. Theory T -- Theory X vs. Theory Y). The key is in changing the assumptions that companies hold about their customers.

Suggested Citation

  • Urban, Glen L., 2003. "The Trust Imperative," Working papers 4302-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
  • Handle: RePEc:mit:sloanp:3510
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/1721.1/3510
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheema, Amar & Papatla, Purushottam, 2010. "Relative importance of online versus offline information for Internet purchases: Product category and Internet experience effects," Journal of Business Research, Elsevier, vol. 63(9-10), pages 979-985, September.

    More about this item

    Keywords

    Trust-based Marketing;

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Trust-based marketing in Wikipedia English ne '')

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mit:sloanp:3510. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann). General contact details of provider: http://edirc.repec.org/data/ssmitus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.