Measuring Trust: Through Competence—or Warmth?

Applications

Contributor / Adam Waytz

Associate Professor of Management and Organizations
Kellogg School of Management / Psychology

Part 1 / Measuring Trust: Through Competence – or Warmth? (0:00)
Research suggests that first impressions are critical in determining whether or not to trust someone, and that when a trust breach occurs, it can be difficult to restore. A cross-disciplinary perspective provides insight into how broken trust can be addressed.

Part 2 / Warmth vs. Competence in Gauging Trust (0:38)
We decide whether to trust another person almost immediately, and the decisive factor is their perceived warmth. But when businesses try to build trust, they typically focus on competence, which can be quantified. Warmth seems much less measurable, though organizations have become better at expressing it with indicators showing they are friendly to good causes.

Transcript

BUMPER: Trust and First Impressions

I think what the research suggests is that first impressions go a long way and that people are making a decision about, “Do I trust this person? Do I trust this organization? Do I trust this brand?” relatively immediately.

And furthermore, trust is very difficult to restore once it is breached.

BUMPER: Warmth vs. Competence in Gauging Trust

So, the work of Susan Fisk and others has shown that warmth really predominates judgments of trustworthiness, more so than competence.

So, the first and the most important thing that people are basing their judgments of trust on are, “Do I feel that this is someone that’s benevolent? Is this a person or a company or a brand that’s kind, that’s good, that I would like to be friends with?”

The problem is, in the world of business, people tend to focus on conveying competence.

When they want to restore trust or when they want to gain people’s trust initially, businesses tend to focus on competence: letting people know that they’re intelligent, that they’re capable, that they have the ability to act on whatever their intentions are.

Consumers and people in the world and just people who are engaged in social life care about competence second. They care about warmth first. This is also important for leaders as well.

Amy Cuddy and colleagues wrote an article in Harvard Business Review that I like to refer to which is called “Connect, Then Lead.”

Often leaders think that they need to convey their competence to the organization above all else. But the most important thing is first to connect with subordinates and peers and other executives on this dimension of warmth.

I think why we focus so much on competence in the world of business is that competence is much easier to measure. We can see performance ratings; we can see sales numbers; we can see return on investment.

Competence is something that is very visible, so we tend to focus on what is visible and what’s quantifiable.

Warmth is something that feels a bit squishier, a bit more abstract, and even a bit less quantifiable, yet warmth is what people are really thinking about when they’re judging, “Do I trust this person? Do I trust this organization? Do I trust this brand?”

Now, some companies and some organizations have gotten much better at quantifying warmth or quantifying things like social responsibility: “How much is my organization engaged in fair practices towards its workers? Positive interactions with the community? Benevolent actions towards the environment?”

And we can start seeing the emergence of the corporate social responsibility scores. I think this is a step forward in organizations trying to capture warmth in a more quantifiable manner and then conveying that to potential consumers who really care about these dimensions.

Keep up with the latest insights on trust

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With only 100 milliseconds on the clock to prove you're trustworthy, the importance of first impressions cannot be ignored.

The Importance of First Impressions and Trust: Key Findings

Research
Contributor / Adam Waytz
Adam Waytz Psychology Definitions,Reputation Management,Swift Trust A lot of the key articles in psychology on the topic of trust I think have really come out in the 21st century. And one really key article that emerged in 2006 was a study in Psychological Science by Willis and Todorov.

And Willis and Todorov conducted a really elegant study that simply discovered the remarkable finding that trust is something that people tend to judge in another person’s face within 100 milliseconds.

Now, how they conducted this study was they gave participants a variety of different faces — they exposed participants to a variety of different male and female faces.

And the first part of the study just involved an unconstrained session where participants made various judgments about these faces.

So, how attractive is the person in this photograph? How likeable is the person in this photograph? And how trustworthy is the person in this photograph?

In the second portion of the study, participants were presented with the same faces extremely rapidly. So, some were presented at 100 milliseconds; some were presented at 500 milliseconds; and some were presented at 1 second.

And various participants, after this brief exposure to the face, were simply asked the question, “Do you find this person trustworthy, yes or no?”

And what they found was very striking. First of all, there was an extremely high correlation between these snap judgments of, “Do I judge this person as trustworthy, yes or no?” after just a brief exposure to a face — a monumental correlation with those judgments and the judgments made in the absence of time constraints.

So, this suggests that people are making judgments about trustworthiness within 100 milliseconds.

What was also interesting was that, as time increased (so, as participants saw these faces at 500 milliseconds or after a whole second), the correlation didn’t really change that much.

So, what these findings tell us is that trustworthiness is something that people judge very automatically, even before we’ve gotten our wits together to really decide how confident we are in our judgment.

And they really correspond to the same judgments we make about trustworthiness when we have unlimited time to judge people.

BUMPER: Key Research on Trust in Neuroscience

Neuroscientists have also really taken up the topic of trust in their studies as well. One definitive paper on the neural underpinnings of trusting behavior comes from Krueger and colleagues, published in Proceedings of the National Academy of Sciences.

This experiment involved a multi-round trust game. So, this is the game where there is an investor that decides how much money to invest with a trustee, and the trustee then decides how much to pay back.

In these studies, the trust game is administered in a similar fashion to how it’s administered in classic psychological studies, in studies within economics; the only difference, of course, was that in this study, participants brains were scanned while they were making decisions about whether or not to trust and how much to trust people.

The central findings of these studies were that there was a central network of brain regions that was involved in decisions about whether or not to trust, and these brain regions are those that are typically involved in what is called “mentalizing,” or thinking about the mind of another person, thinking about the intentions of another person.

So, this mentalizing network was consistently recruited when people were making decisions about whether or not to trust.

What was also interesting was that this study looked at the differences between conditional trust and unconditional trust.

What’s meant by conditional trust is trust with the assumption that my partner in this game might behave in a self-interested fashion. Conditional trust is, I’m only going to trust you if you’re going to repay me, repay my trust.

Unconditional trust has to do with trusting people indiscriminately, irrespective of what you think their intentions might be.

Another major finding of this study was that separate brain networks were recruited when people engaged in conditional versus unconditional trust, suggesting that these are different psychological processes.

BUMPER: Warmth vs. Competence

A short review paper in Trends in Cognitive Sciences by Susan Fisk, Amy Cuddy and Peter Glick really summarizes a body of research that is essential to understanding how psychologists think about trust and how psychologists study trust in this day and age.

What Fisk and colleagues have found over years and years of studies is that we essentially judge people on two dimensions: How warm is this person? So, how benevolent is this person? And how competent is this person? Does this person have the capability of acting on his or her intentions?

And the most interesting finding that comes out of this research is that people don’t treat warmth and competence the same.

People judge these things relatively rapidly; they base a lot of their judgments about whether to approach or avoid another person on judgments of warmth and competence. But warmth tends to predominate our social judgments.

In other words, warmth is the first thing that we judge when we judge another person (competence comes slightly after), and warmth carries the weight of our judgments when deciding whether or not to trust someone.
In some instances, there are similarities between chess and the psychology of trust.

Friend or Foe? A Psychological Perspective on Trust

Foundations
Contributor / Adam Waytz
Adam Waytz Psychology Definitions,Government,Healthcare,Measurement,Regulation,Reputation Management,Social Psychology,Swift Trust I’m going to be talking about trust from the perspective of psychology, neuroscience, and psychophysiology.

And in these fields and subfields, trust is studied in a fairly straightforward manner: People want to know, and researchers want to know, under what conditions do people trust each other, and what are the factors that people use to determine whether or not to trust someone?

Now, despite the straightforward manner in which trust is studied in these fields, trust is really a multifaceted concept in these fields as well.

BUMPER: Key Components of Trust

So, drawing on a definition that actually comes from outside of psychology, from McKnight and Chervany in the information sciences, we can think about trust as consisting of four different things: benevolence, integrity, competence and predictability.

Benevolence essentially means, is this person a kind person? Integrity means, is this person an ethical person?

Competence means, does this person have the ability to do what needs to be done? And finally, predictability means, does this person behave in a way that I can consistently forecast?

The key question that people want to know about in these fields is, how do people judge whether someone or another entity is friend or foe? What are the dimensions that people use in judging whether someone is trustworthy or not?

BUMPER: Neural and Hormonal Bases for Trust

Trust is also studied in the subfields of neuroscience and psychophysiology, where these fields take psychological questions and simply ask, what are the neural or hormonal or physiological underpinnings of psychological phenomena?

The basic questions that psychology, neuroscience and psychophysiology are trying to answer are essentially twofold: One is, how do people decide whether or not to trust another person? What are the characteristics of the target? What are the situational determinants that lead someone to trust another person or not?

And second, a more recent question that people have gotten really interested in these fields is, how automatic is trust? How quickly do we make the decision to trust another person?

So, one of the debates that predominates psychology is the degree to which trust truly is automatic — that is, how quickly do we judge another person as trustworthy or untrustworthy.

A second debate in this field focuses on a much more specific topic, which is the topic of, what is oxytocin’s role in guiding trust?

Oxytocin is this hormone that’s been implicated in all sorts of behaviors related to social bonding and affiliation.

And work in the early 21st century by Paul Zak and colleagues determined that administering oxytocin to people (that is, increasing people’s oxytocin) increased their willingness to trust people.

But more recent research has questioned, how much is oxytocin actually solely positive in nature? Is it really this “love drug” that people like to refer to it as?

Another questions is, how much are the studies that show the role of oxytocin and trust, how much are those studies able to replicate when administered time and time again?

BUMPER: Measuring Trust

How people measure trust and trusting behavior in psychology and neuroscience and psychophysiology is very straightforward. Often, it simply consists of asking people, “How much do you trust this person, on a one-to-seven scale where one is not at all and seven is very much?”

So, a typical study would present people with various targets — maybe targets that they are just viewing the face of, maybe targets that they’ve interacted with — and then the study would ask people, “How much do you trust this person?”

Other research uses classic economic games. There’s one game that’s known as the “investment game,” or the “trust game,” that can actually measure trusting behavior.

So, within the field of psychology and its associated fields of neuroscience and psychophysiology, the questions that we’re asking about trust are really relatively simple: How do people decide and how quickly do people decide whether or not to trust another person?

However, the way that trust can be conceptualized is incredibly multifaceted.

So, trust might mean trust in the predictability of someone, trust in the warmth or benevolence of someone, trust in the integrity of someone, or trust in the competence of someone to get things done.
Harry Rosen establishes consumer trust with every suit they sell.

Consumer Trust in Company Culture: A Competitive Advantage

Applications
Contributor / Larry Rosen
Larry Rosen Retail Breaches,Building Brands,Institutions and Context,Leadership,Long Term Focus,Regulation,Retail I'm Larry Rosen, the CEO of Harry Rosen Inc., Canada's largest quality menswear retailer, and for us, trust has always been the centerpiece of our organization. And without earning the trust of our customers, without earning the trust of our associates and earning the trust of our vendors, I don't think we could point to 62 years of fairly significant success in men's retail.

We find that when you can earn a man's trust and make the process easy for him, he'll reward you with his loyalty over the years, and when you think of a man's shopping every year and building a business wardrobe and a personal wardrobe, that's pretty good annuity to have if you can keep his trust.

And so, everybody knows it's part of our cultural mission as a company not to let a customer down, not to lie to a customer. If something doesn't look right on a customer, you tell them. I mean, it's not about the sale today. It's about the long-term relationship we have. So it's not uncommon to hear on a selling day that, "You know what? That's not the right thing for you today. I don't have exactly what you need." To us, selling isn't about short-term. Selling is about lifetime value of a customer. And, you know, the other part of it is when you violate trust, when you let a customer down and listen, we have 1,000 associates, somebody's going to do something that upsets a customer where he feels he's been betrayed, and how we recover from that is so critical. I personally spend a decent part of my week dealing with customer problems¬¬ — we'll do whatever it takes to earn back that trust.

And even when they've lost confidence in us, when we react the way we do with that very, very proactive approach to earning back their trust, they come back to us. And in fact, they become more passionate about our brand.

BUMPER: Fostering a Culture of Trust

There's — the things that keep our associates in line with our values — there's really two things that really make a difference. One is, we as a company spend more on training, I believe, than any other company per associate. We train them on how to deal with the customers. We teach them all the philosophy of earning customers' trust. The other part that really is important, and this is, I mean, people have written on this, but it's not easy to quantify, is the culture of our company.

Our culture supports the right behaviors. It's funny because on occasion, a competition have come in and hung out big dollars and hired away people thinking they're going to get — going to get a piece of our expertise — but when the culture is a surrounding, the behavior isn't as natural, and people — people will behave in accordance with a great corporate culture.

BUMPER: Redefining Customer Engagement

It's interesting because on a strategy level, when we saw that the landscape was changing three or four years ago when the American department stores announced they were coming in, we realized that we had to look for competitive advantages that were compelling that couldn't be duplicated. Why do customers really choose us? What makes us a compelling choice? And what can we do that they can't imitate?

A pinnacle moment for us as an organization — as a relationship-based seller — came a few years ago when we used to call our associates on the floor, we used to call them sales associates. And we realized that that term really, I mean, everybody has this thing of a salesman on the floor and they, you know, the guy you have to hide from and who, when he approaches you, says, "May I help you?" and you say, "I'm just looking. Thank you."

And we changed their name to clothing advisors because we wanted a name that said that these are experts, that they're highly trained experts that are going to help make the shopping process for you easier. That one little change improved the whole culture of the organization, and I think it improved the client experience because we consistently refer to our people on the floor as clothing advisors.

You think it's, I mean, well, that's a simple name change. But it really encapsulated what we were trying to do and what our key competitive advantage was.
The change of name from a sales associate to clothing advisor, I think it really related a lot to the issue of customer trust. It supported our competitive advantage, but it also supported the fact that our clients could have trust in our associates to help them build their wardrobes and shop with us long-term.

Other pages in Videos:

Pages in The Trust Project at Northwestern University