Is Firm Trust Essential In A Trusted Environment? How Trust in the Business Context Influences Customers

Customers are influenced not only by how much they trust a company and its representatives but also by how much they trust the broader context where the market exchange is taking place. In this research we test two rival sociological perspectives regarding the influence of customer trust in this broader context. One of these perspectives proposes that trust in the context replaces trust in individual firms and their representatives. This view suggests that firm/representative trust is not always critical, especially for customers with high trust in the context. An alternative perspective is that trust in the context fosters and legitimates trust in firms and their representatives. This view implies that firm and representative trust is a necessary mediator of trust in the context. Using empirical results from two studies implemented in two different countries, we test predictions based on both perspectives. Results from both studies support the proposition that trust in firms and their representatives is a necessary mediator of trust in the context.