Document Type

Article

Publication Date

1-1-2010

Abstract

Driven in part by recent corporate failures, consumers are increasingly distrustful of motivations and behaviors of corporate leaders, firms, and entire sectors of the economy. How do firms win consumer loyalty in distrust-dominated environments? We use two competing theoretical lenses to investigate the most salient strategic path to firm loyalty in trust- and distrust-dominated environments, from the consumer perspective. We find that consumer distrust in a firm is a grave threat to loyalty across industries. Additionally, we show that distrust-dominated environments present unique opportunity for some firms with high consumer trust to gain loyalty, while trust-dominated environments present fewer opportunities.

Keywords

trust, distrust, environmental scanning, consumer loyalty

Rights

© The Author(s). This is an open access work distributed under the terms of the Creative Commons Attribution-Non-Commercial (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial reuse, distribution, and reproduction in any medium, provided the original work is properly cited.

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Department/Center

Design & Innovation

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