Wednesday, May 07, 2014

Marketing Insight : What drives brand trust ?

Last day, I went to buy a small appliance as a gift, there were two brands- one was an instore brand and another a very well known brand. The in-store brand product looked very good with more features than the national branded product. At the similar price point , the instore brand looked a very good buy.  
When my wife asked my  " expert" opinion, I urged her to go for the national brand despite the fact that I knew that the private label brand would have been a better choice. 

On introspection, I found that what I was doing by choosing the national brand was risk-reduction. That is what branding is all about isn't it ? The national brand offered a much less featured product so on a value calculation, the private label offered more value. But as a consumer, the national brand offered less perceived risk.
So why did I as a consumer felt that the national brand offered less risk compared to the private label ? 
Firstly, the brand was reputed ( familiar) and its legacy gave me comfort that it would not fail me in terms of performance. Secondly, as a consumer, I had a positive experience with the brand which made me trust the brand more than the private label. Thirdly since the product was an electrical appliance, the perceived risk is more compared to another product category. 

So for marketers, creating trust for a new brand is not easy especially in product categories have high perceived risk ( common sense !) . And brand's role is that of risk-reduction. And as a consumer, I can say that for me a brand would be trusted if it is familiar and has perceived product expertise. 

What do you think are the drivers for brand trust as a consumer ?


  1. Anonymous12:28 AM

    At a similar price point a known brand would always be preferable!
    Drivers for brand trust would be: Years of existence of the brand, Advertising, product line, Innovation, guarantees offered, after sales service locations, product benefits, product recommendations from friends, online presence, brand website quality, online product reviews.

  2. Advertising is a major driver which comes to my mind. Certification (labeling), standard packaging of the products come next.

    Next is the perceived notion of where a sector/product originates from. For example, cars from Germany are perceived to be built with great engines (VW, Merc, etc) and considered good and instill trust. Things manufactured in Japan instill better quality than ones manufactured in China or India.

    Strangely, branding as a foreign brand rules the roost. Most Indians do not know that Killer is an Indian brand.

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  4. hi, i like ur view nd analysis of private nd branded product feature , and the psychology of the consumer towards branded and unbranded product. but my que. is if a company is well known in the market, and trying to tap into the new market with new product feature at that time what abt preceived risk of the consumer /??/

    may consumer buy it ? or not ?

    manager at reliance retail ltd.

  5. if the well known company launch is product in the new market. then wht abt customer perceived risk.. if reliance launch soap, shampoo, and spray... then would u buy it ? as a consumer. as reliance is well known brand nd known at all level.

    what is ur view. (perceived risk)

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  8. 1) Past Experiences with the brand (or its parent/sister brands) as a consumer/customer

    2) Parent Brand (Could even be a person) - E.g. I may trust a new "Tata product" because I trust the "Tata Group" or "Mr. Ratan Tata"

    3) Recommendations/Word Of Mouth

    4) Current market position (in terms of market share)

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