| Customer trust is a precondition for
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| | best trade-off between satisficing trust,
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| prosperity. Yet, most businesses...- Act
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| | price and convenience. Some companies
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| as if customer trust develops because the
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| | become complacent because they feel they
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| business believes it is honest.
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| | offer the best combination of the three.
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| - Build only a shallow type of trust
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| | Unfortunately for them, all it takes to
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| that does not lead to profitable
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| | lose customers is for a competitor to
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| relationships and loyalty.
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| | create the perception of a better deal.
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| - Have no strategy to build the type of
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| | No real relationship value has been
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| trust where customers increasingly value
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| | accrued by the company who wins business
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| the relationship.Now is an excellent time
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| | this way.The operative words in the
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| to aggressively and systematically work
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| | second definition of trust are "hope" and
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| at building customer trust. Virtually all
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| | "trust in the future." Many purchases
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| businesses have been tainted by the
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| | these days are not commodities; they are
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| general rise in societal distrust of
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| | not well defined and may not have a track
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| companies.- A recent Datamonitor study of
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| | record. To make these types of purchases
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| consumers in the USA and Europe found
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| | the customer must take a "leap-of-faith,"
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| that 86% are less trusting of companies
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| | and this requires trust. In this type of
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| than they were five years ago.
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| | trust the customer must believe that the
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| - 80% of people stop buying products or
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| | vendor company is truly interested in a
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| services from companies when their
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| | win-win relationship. That is, they are
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| trustworthiness comes into question
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| | interested a long-term relationship where
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| (Edelman 2005 Trust Barometer)
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| | both parties benefit. This type of trust
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| - People spread distrust to friends and
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| | grows out of experience with a company
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| associates, the people we trust most.
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| | demonstrating a real commitment to
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| - Over 33% who lose trust in a company,
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| | win-win. Since virtually all customers
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| openly campaign against that company on
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| | have been "burned," companies often have
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| the Internet.The Datamonitor and Edelman
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| | to subjugate their short-term interests
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| research demonstrates that it goes beyond
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| | to stimulate the development of faithful
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| a few isolated cases. Furthermore,
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| | trust.Customer want to build
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| according to a Yankelovich study, more
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| | relationships that help them more
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| than two-thirds of people don't believe
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| | confidently make "leap-of-faith"
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| advertisers and marketing. They see it as
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| | decisions. Being able to rely on this
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| self-serving distortions.Customers want
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| | trust helps them simplify things in an
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| to do business with companies they trust
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| | increasingly complex world. When this
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| but, don't know who to trust. Therefore,
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| | happens, trust in the relationship
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| companies that proactively demonstrate
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| | becomes more important to customers than
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| trustworthiness stand to gain a
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| | price and convenience. It starts with
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| tremendous source of competitive
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| | "hopeful trust." Customers want the best
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| differentiation.What is trust and why is
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| | for themselves. They want to adapt and to
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| it important to customer relationships?
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| | embrace change, and they will place
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| Webster gives two definitions of trust
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| | extremely high value in relationships
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| that help separate the wheat from the
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| | that help. Customers are on the lookout
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| chaff.1. firm belief or confidence in the
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| | for signs from companies that their
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| honesty, integrity, reliability, justice
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| | "hopeful trust" will be well placed. But
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| of another person or thing.
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| | this "hopeful trust" is just a test. If
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| 2. confident expectation, anticipation,
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| | experience demonstrates that trust in the
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| or hope; as in trust in the future.Most
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| | relationships is justified, faithful
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| companies believe they are trustworthy
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| | trust will emerge.When trust morphs from
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| but only measure up to the first
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| | "hopeful" to "faithful," a very
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| definition. They want to be known as a
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| | significant twist occurs. The main
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| company that is honest, reliable and
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| | concern of customers shifts from price
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| fair. They expect their products live up
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| | and utility to the seeking of advice and
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| to expectations and when they don't they
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| | guidance. When price is an issue,
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| think they treat customers equitably.Do
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| | customers withhold information. When they
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| you think your company measures up? If
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| | seek guidance, they openly share.
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| you say yes, ask yourself what you
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| | "Faithful trust" enables this openness.
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| proactively do to build this trust. Many
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| | It also enables both parties to prosper
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| companies have no deliberate strategy.If
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| | and builds a basis for co-adaptation, now
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| you have a deliberate strategy, now might
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| | and in the future.The trustworthy company
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| be a good time to question how well it is
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| | gets the immediate sale, but they get
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| working. As mentioned above,
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| | much more. Snafus or mistakes that might
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| Yankelovich's research shows that most
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| | have once terminated a relationship are
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| customers don't believe your marketing
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| | now overlooked for the sake of the
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| and advertising. And, the Edelman Trust
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| | relationship. Customers become
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| Barometer concluded that when looking for
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| | turbocharged advocates. They don't merely
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| a credible source of information on a
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| | tell others what you sell; they vouch for
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| company or product, CEO's, employees,
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| | you and the relationship value you
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| public relations people and celebrities
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| | deliver. They come to depend on your
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| rank in the bottom half.Measuring up to
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| | business and, as a consequence, they want
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| the first definition of trust is
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| | you to thrive.The real-life story of
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| essential to sustainable and profitable
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| | Billy Blue, a men's clothier in San
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| customer relationships. However, even if
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| | Francisco illustrates the power of fully
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| customers believe your company is honest,
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| | trusting relationships. Billy Blue's
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| reliable and fair, this is no guarantee
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| | thriving business took a nose dive during
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| they will be loyal and profitable. To
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| | the crash. The downturn was so severe its
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| garner commitment, profitability and high
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| | owner, Billy Bragman, considered closing
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| lifetime value, a company must measure up
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| | his doors. Instead, he wrote his
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| to Webster's second definition as
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| | customers a letter explaining the
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| well.Businesses that meet the first
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| | situation and asked them to buy more
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| definition but not the second, run into
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| | clothes. Even though many of his
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| the Satisficing Trust Barrier.
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| | customers had their own business "trial
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| Satisficing trust is the trust that
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| | and tribulations," they increased their
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| allows a customer to feel comfortable in
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| | clothes purchases. One guy sent a check
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| buying products or services from a
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| | for $2,500 with a note saying, "You know
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| company. It is a sense of confidence that
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| | what I like; just send me some new
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| the company will stand behind the
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| | clothes." Billy Blue customers could
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| product. It is sufficient trust to
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| | easily have turned to other men's stores
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| purchase a well-defined product, a
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| | but they chose to support Billy Blue.
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| commodity. In a world of abundance and
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| | They valued their relationship with Billy
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| overwhelming choice, satisficing trust
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| | Blue and didn't want it to go out of
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| does not insure repeat business.
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| | business.John I. Todor, Ph.D.
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| Customers buy commodities that offer the
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