Halo Effect in Trust

Natarajan, R C (2009) Halo Effect in Trust. ICFAI Journal of Management Research, 8 (1). pp. 26-59.

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Abstract

Trust-literature considers goodwill trust and competence trust as two distinct types of trust. Many well-known scholars have made mention about the two bases of trust as if being different. However, the veracity of this distinction does not seem to have been addressed by researchers. This paper reports an experiment to test whether the two types of trust are indeed distinct, and the results throw up a surprising finding that they are very highly and positively related and hence not distinct. Principal's perception of agent's trustworthiness does not seem distinctly clear-cut as competence-based or goodwill-based, despite scholars' mentioning them as different. The paper offers a plausible explanation though the concept of 'halo effect'. The contribution of this paper to management practice lies in bringing out the presence of halo effect in trust that may well indicate possible wastage of resources in superfluous controls and/or the failure to implement appropriate controls required.

Item Type:	Article
Uncontrolled Keywords:	Goodwill Trust;Competence Trust;Halo Effect;Experiment
Subjects:	Marketing > Customer Relationship
Divisions:	Marketing Management
Depositing User:	Mr. Ramesh Kamath
Date Deposited:	26 Oct 2018 10:42
Last Modified:	26 Oct 2018 10:42
URI:	http://tapmi.informaticsglobal.com/id/eprint/189

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