An investigation into corporate trust and its linkages

Abstract

We use a second order model of corporate trust to empirically investigate trust-commitment and loyalty building mechanisms in the Indian context. The development of corporate trust is found contingent on both organizational practices and employee behaviour, which are conceptualised as first-order dimensions of the second-order construct of corporate trust. The conceptualization of corporate trust is shown to be valid irrespective of the exchange situation involving durable, non-durable or service products. Results of a survey conducted with 835 Indian consumers show that the higher order construct of corporate trust predicts affective, normative and continuance commitment to the organisation behind the brand. Affective commitment is found to be the highest driver of customer loyalty (word-of-mouth and share-of-wallet) in the Indian context. The results vary slightly across different exchange situations and provide various implications to theory and practice with an aim at building long term customer relationships in the Indian context.