Reputation and product tampering in service industries

Jai-Beom Kim and Chong Ju Choi

The Service Industries Journal, 2003, vol. 23, issue 4, 3-11

Abstract: This theoretical paper aims to identify the role of trust and reputation between consumers and firms when there is product tampering or other types of product liability. When product tampering occurs, trust implicitly built towards brand or corporation by consumers or customers can be dissipated. This article assesses the impact of quality uncertainty and measurement costs on the trust relationship between consumers and corporations. The ideas are also applied to the case of bank runs. Preliminary findings indicate that in cases where the trust between consumer and firms is strong, and there are high measurement costs and uncertainty, the reputational relationship between customers and firms can experience strong repercussions.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:23:y:2003:i:4:p:3-11

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DOI: 10.1080/02642060412331300972

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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