What do consumers do when they are going through the purchase decision? They gather information. But, do they gather information for all the options? Most likely the answer is no, they do not.
Consumers tend to stick to certain brands they trust. This is very important for not only organizations, people and businesses to understand.
Lets take a theoretical situation where John is looking for a surround sound system. After getting off of work on Friday, John stops at a gas station to fill up his car. While he is standing at the gas pump, day dreaming about his choices for which sound system he would like to buy this weekend, a person walks up to him asking him if he would like to buy a surround sound system for $150 (a friend of mine was approached and given this price). When I bought a BOSE surround sound system, I paid upwards of $800 for it. If you were John would you pay cash for a surround sound system sold on the street. In most cases no you wouldn’t, because you have no trust in the person selling it, and you would also have to trust that it actually works.
Lets look at another example, this one taken from “The Brand Gap”, written by Marty Neumeier, a book I read a few years ago. Looking back, before the Revolutionary War of the United States, when there was also paper currency. But right after the Revolutionary War paper money became much less valuable than previous to the war. Silver and Gold became currencies that people of that time could trust. Since then, it took close to a few hundred years in order for citizens to accept Silver Certificates as a substitute, even though they were still backed by metal reserves. Further, it wasn’t until a hundred years later that we were willing to accept Federal Reserve Notes, which aren’t even backed by metals but instead by the brand of America. Quickly afterwards in the book Neumeier writes “Will we soon be ready to accept international cyber-currency as an improvement on credit cards? Sure, if we can trust it.” (This book was written almost ten years ago)
Nearly ten years later we are seeing just that, the acceptance of a cyber-currency named ‘Bitcoin’. Why are some companies from all over the world taking it as a form of payment, why is an individual selling his house in the Hampton’s for Bitcoins? The answer is simple, we are beginning to trust it.
Much like trusting a person, or a form of currency when we make purchase decisions we are engaging in trust, whether it be the brand of a product, or a brand of the distributor. Nevertheless we are Trusting The Brand. We trust the brand because of previous experiences, word-of-mouth, or the fact that the brand has been around for many years. There are many reason why we trust certain brands, but this trust from consumers is very important.
How do you get consumers to trust you? How do you get a person to trust you? Through time and actions can a perception of trust come about.