Trust in the development of new channels in the music industry

Abstract

The purpose of this study is to investigate whether factors that promote trust influence channel selection decisions. We develop a theoretical model implicating alternative factors that promote trust as antecedent to the choice between new and traditional channels. The model augments prior research investigating relational trust with discussion of institutional mechanisms that engender trust in business-to-consumer relationships. We offer a preliminary test of the model via examination of music transactions made via retail establishments, websites, and downloading services. Our analysis is based on data from 410 customers from the three alternative marketing channels. Because music is distributed through alternative channels, it is an interesting context to study how trust affects channel selection. The results implicate factors that promote institutional and relational trust as antecedent to selection decisions in the music industry. We conclude with a brief discussion of the implications for channel management and theory.