By Billy Liang Wu

Ever come across individuals who only purchase a particular brand regardless of
availability of other alternatives in the market at lower prices? The case may be
with an iPhone instead of another phone or Starbucks rather than the local cafe,
or with a Nike shoe compared to other brands. Customers develop loyalty
towards businesses based on their trust in these businesses. However, product
quality alone cannot explain the loyalty of customers to a particular business.
Brand trust is defined as the belief that a business would always deliver on its
promises. When people trust a business, they feel more confident buying from
the business as they expect good outcomes. Brand trust becomes a business
asset with time.

The main way by which companies build trust is through consistency. Every time
someone makes a purchase, there is an expectation of consistent quality of the
product. For instance, whenever one purchases the same drink in any Starbucks,
one expects it to taste the same no matter the store location. Consistency gives
people assurance of what they will get when they purchase something. If one
experiences inconsistent quality of the goods or services, then one may lose
confidence in the company.

Customer service is also very important. Not all the products will be perfect
always, but how the company solves problems will determine customer loyalty.
The ability to listen to customers’ complaints and solve them in a manner that
shows respect and care for the clients increases the chances of loyalty.
Honesty is also essential in establishing trust. Companies that are open about
prices, policy and products will develop better relationships with customers.
When there is misrepresentation of the products, such as misleading advertising or hidden costs or failure to deliver what one promised, a company loses
credibility. In the current world of social media, businesses have to be extra
careful about this issue.

The next factor contributing to the brand trust is reputation. Many people
nowadays tend to research the goods before buying it. People tend to read
reviews, watch videos, and ask friends about certain products. The good
reputation created by others makes people trust a particular business even more.
That is another reason why business tries to encourage its customers to write
reviews since they know how important trust is.

Creating a good brand identity is another method used by business to develop
customers’ trust. Businesses usually use logo, company values, and company
mission and message to create the image of business. Some companies
concentrate on innovativeness, some on low price and affordable prices, while
some companies concentrate on good services. By fulfilling those goals and
values, companies can attract customers’ attention and develop loyalty.
The importance of understanding of brand trust for consumers and future
entrepreneurs is obvious. As consumers, we can learn how to approach the
choice of certain products better. Being future entrepreneurs, we understand the
importance of building trust, which requires more time than sales but will
eventually pay off.

In the final analysis, products can always be duplicated, prices can vary, and
there will always be other companies to compete against. Building trust, on the
other hand, is a very hard task to do. It is the organizations that maintain their
integrity by providing value, treating clients fairly, and honoring their commitments that end up building relationships.

Sources
https://www.investopedia.com/terms/b/brand-equity.asp
https://www.investopedia.com/terms/b/brand-loyalty.asp
https://www.forbes.com
https://www.sba.gov
https://hbr.org