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Abstract

The growing importance of increasing business performance through intangible assets has been recognized in theory and practical experience. Trust as one of them is a natural and essential component of relationships (Sheppard/Sherman 1998, p. 422). Trust facilitates both consumer loyalty and customer retention, but also compensates for information asymmetries, reduces transaction costs, and lowers perceived risk (Picot et al. 2003; Ripperger 1998). Marginal changes in loyalty (e.g., 5%) disproportionately affect changes in profitability (25% - 100%; see Reichheld et al. 2000). Consequently, trust has an immense impact on organizational performance.

Keywords

Banking Industry Trust Model Intangible Asset Reduce Transaction Cost Customer Retention 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Gabler | GWV Fachverlage GmbH 2009

Authors and Affiliations

  • Tara Ebert

There are no affiliations available

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