Goodwill Trust and Competence Trust in an Administered Channel Relationship: Are they Independent?

Natarajan, R C (2007) Goodwill Trust and Competence Trust in an Administered Channel Relationship: Are they Independent? TAPMI, Manipal.

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Abstract

Administered marketing channels, arrangements characterised by member firms dependent on the channel-leader, the principal organisation throw up peculiar problems in monitoring control. Complete control by the principal organisation is either impossible, or exorbitant, warranting trust by the principal in his agent to play a role. Trust-literature in the context of inter-organisational relationship considers goodwill trust and competence trust as two distinct types of trust. Many scholars have made mentions about the two bases of trust distinctly. 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 threw up the surprising finding that they are very highly and positively related. Principal’s perception of agent’s trustworthiness does not seem clear-cut as competence-based or goodwill-based. The paper offers a plausible explanation from the field of psychology though the concept of ‘halo effect’.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Principal-agent relationship, administered marketing channel, trust, halo effect
Subjects:	Marketing
Divisions:	Marketing Management
Depositing User:	Ms. Vanitha K
Date Deposited:	15 Nov 2018 08:53
Last Modified:	15 Nov 2018 08:53
URI:	http://tapmi.informaticsglobal.com/id/eprint/305

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