Trust Based Consumer Decision Making Model in Banking Industry

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Introduction In current financial environment, trust issues are the most persistent subject for customers of financial establishments. The effect of the recession in the past years had a significant impact on the outlooks and opinions of consumers’ .The people state that retail financial services, investment and insurance are the industries least likely to do the right thing (Recklies, 2012). The honesty of high street banks has even more significance to customers, according to research undertaken by Harris Interactive UK with 1,962 consumers. In present day financial climate, banks have to show care and concern about their customers. But people state that this softer trait is not that important (Importance of trust, 2012). Trust seems to have always played a significant role behind consumers’ decision to purchase. But the role of increasing trust of banking industry is mainly because of mass introduction of Internet Banking. This internet banking has made 24 hour banking possible. This success of this sector has made the banking industry to provide more and more internet service. The Researches on trust has been conducted from a range of disciplinary viewpoints which gave rise to many definitions of trust over the time. Previous researches on traditional business focused mainly on interpersonal trust such as a customer's trust in a salesperson. According to Plank, Reid, and Pullins (1999) “some researchers recognized that consumer trust can have various referents such as salesperson, product, and company which defined trust as a global belief for the buyer that the salesperson, product, and company will fulfill their obligations as understood by the buyer”(p.61). Likewise, in case of Banking industry trust can be defined as a subjective belief, a subjective probability, the willingness of an individual to be vulnerable, reliance on parties other than oneself, or a

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