The primacy of corporate brand trust for new market entrants

Abstract

Purpose The purpose of this paper is to test if the order in which potential customers receive company related information and product related information about a new brand can influence their trust and purchase intentions towards that brand. The empirical context is when both product and company are new to a market and share a brand name. Design/methodology/approach Two experiments, each involving a different product type, are used to test whether higher trust and purchase intentions towards a new brand are likely when company related information is provided first compared to when product related information is provided first. Findings Company related information is more diagnostic than product related information and carries more weight in initial consumer trust judgements particularly when it is evaluated first. There is a similar primacy effect on purchase intentions but one mediated by initial trust. The effect is more pronounced for product types that involve a higher perceived risk when buying. Research limitations/implications This paper adds to our understanding of the respective roles of corporate and product communication in the process of brand trust formation for newly launched brands by evidencing and explaining primacy effects related to the greater diagnosticity of corporate brand information. Practical implications Market entrants should communicate information about their company before promoting their products. Originality/value While prior work has shown that both company and product related information can influence customers’ trust towards a new brand, there has been no assessment of the benefits from ordering these communications. The focus here is then on the processes involved in brand trust formation, rather than on identifying specific antecedents of brand trust.

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