Trust and Customer Service Performance

Trust
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Trust
Trust is a complex and multidimensional concept in the business world. It is an important concept in customer service performance. Trust can either be reliability or character based. Reliability based trust is formed from an organization’s judgment of a potential partner`s behavior and operating performance. It involves the belief in the partner`s capability, competence, and skills in performing their duties. Character-based trust is based on business entity culture, philosophy, and management. It is based on integrity, motive, and consistency of an organization.
Character-based trust is critical in a collaborative relationship. It reduces risks associated with opportunistic behaviors, which allow each party to believe that the other will not take unfair advantage (Management Revue, 2006). It acts as a control by enabling shared expectation about the roles of each party in the relationship. It also ensures that the parties will work together on an operative level to be successful.
The character- based trust ensures there is less variation in fundamental characteristics since it facilitates the creation of relation-specific investment. It also acts as an effective governance tool that reduces transaction cost and ensures stable prices. Different parties are also able to combine resources in a unique way, therefore, able to access specific skills and expertise (Moser & Jahns, 2006).
In supplying of products, charact...