Building trust by signaling trustworthiness in service retail

• Published in: The Journal of services marketing Vol. 28; no. 5; pp. 361 - 373
• Main Authors: Kharouf, Husni, Lund, Donald J, Sekhon, Harjit Singh
• Format: Journal Article
• Language: English
• Published: Santa Barbara Journal of Services Marketing 05.08.2014; Emerald Group Publishing Limited
• Subjects: Behavior; Brand loyalty; Business schools; Customer relations; Customer services; Marketing; Perceptions; Retailing industry; Structural equation modeling; Studies; Trust
• ISSN: 0887-6045; 2054-1651
• DOI: 10.1108/JSM-01-2013-0005

Purpose The purpose of this research is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. We position trustworthiness as a mediator in the link between retail strategies and the development of trust. We model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach We validate our model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using Structural Equation Modeling. Alternate models are estimated and the results provide support for our theory-based trustworthiness mediation model. Findings Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications Our research highlights the importance for retailers to signal their trustworthiness in order to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of our research provide important insights for both researchers and managers.