THE FACTORS AFFECTING THE LEVEL OF TRUST BETWEEN BUYER SELLER: AN EXAMPLE FROM HOUSEHOLD APPLIANCES SECTOR

Abstract

The purpose of this study is to examine the factors affecting the level of trust and on which way they affect it between channel members in channel system and an example on household appliances sector is given. In this context, trust which is a constructive factor in relationships is affected by manufacturer firm reputation, relationship continuity, conflict and power. As a multi dimensional construct, power is separated into coercive and non-coercive componenets in this study. In order to test the research model, data were collected through a survey in Kocaeli, Istanbul, Bursa, Yalova and Sakarya, Turkey. Regression analysis results confirmed three out of five hypotheses. Statistically significant and positive influences of firm reputation and relationship continuity and negative influence of conflict on trust was found. Nevertheless the influence of coercive and non-coercive power was not found to be significant. The findings indicate that relationship continuity is relatively the most important factor in developing trust between buyer and seller. The results of this study demonstrate some insights to the firms to develop trust with their buyers in order to develop long term, close relationship.