Trust-Based Marketing: Glen Urban

Urban tested his hypothesis with a prototype website called MIT Truck Town. Its virtual advisors provided straightforward information and unbiased comparisons of competing products. More than 75% of Truck Town's visitors said that they trusted these virtual advisors more than the dealer who had sold them their last vehicle. With Truck Town, Urban proved that virtual advisors can be a cost-effective component in any Internet-based trust-building program.

“My research reveals that trust-based businesses can extract themselves from brutal price wars by proving to customers that they deliver true value,” Urban says. “Trust-based companies have higher customer retention and more stable revenue streams. The prediction is that trust-based businesses will, in the end, have higher sales volumes and lower marketing costs than companies that survive on push-based marketing strategies.”

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