Managing Consumer Trust in Digital Markets: A Narrative Review of Marketing and Strategic Management Literature

Abstract

The digital markets have altered the purchasing habits of the consumer through either substituting or complementing the traditional face-to-face contact by technology-mediated communication. These markets are convenient, efficient, and have an increased access point, but they are also marked by a greater level of uncertainty, information asymmetry and perceived risk in regards to product quality, payment security, privacy and post purchase results. Consumer trust in this situation becomes a key mechanism that makes it possible to be engaged and continue relationships through digital interactions. This is a literature review that synthesizes the literature research on both marketing and strategic management and offers a holistic view of consumer trust in digital markets. The conceptualization of trust presented in the review includes the multidimensional concept of trust, including the notions of reliability, integrity, security, and benevolence, and emphasizes the fact that digital trust is fundamentally different than offline trust because it is based on the technological, institutional, and platform-based cues instead of the face-to-face interaction. Referring to the relationship marketing perspective, risk-uncertainty approaches, and strategic management insight, the review illustrates that trust does not only affect the ultimate consumer behaviors, including purchase intention, repeat buying, loyalty, and engagement, but also serves as a strategic intangible asset that promotes competitive advantage in the long-term perspective. The discussion also indicates that the brand reputation, platform regulation, technological protection, and open policies are important factors that determine trust in online settings. The COVID-19 pandemic is considered to be a turning point which led to increased dependence on digital channels and increased consumer sensitivity to trust signals, which support the stabilizing effect of trust in times of crisis and disruption. The review concludes that trust-building is to be considered as a primary strategic and managerial concern to be connected with marketing practices, governance, technological protection, and ethical issues. It also outlines the main gaps in the research, especially the necessity to conduct longitudinal, cross-cultural, and interdisciplinary research, as well as to explore the concept of algorithmic trust, data ethics, and privacy in more AI-centric digital ecosystems.