You see advertisement of Yahoo! Search and Ask.com on the television, but still end up using Google. You search on Internet for USB drive and find a zillion online stores where you can buy one, but still you choose Amazon, even if you have to pay a couple of bucks more over there. Out of a dozen brands of washing detergent in a store, you pick Tide (or your favorite brand) irrespective of minor price differences. That’s because you are paying the trust premium. Customers know that they will find whatever they are looking for on the Internet through Google, they trust Amazon with their order handling, credit card information and other personal information, and they believe that a product of a certain brand will be better than others.
People pay the premium for various reasons and one of those reasons is trust. I believe trust is the most logical reason to pay the premium, and leads to a win-win scenario. For the brand, it takes huge efforts to gain a position where they can rip the fruits of trust, and I believe when a company go an extra mile to gain that trust, they should be entitled to earn the premium. For the customer, it’s like an insurance. They trust a brand and any premium they put down for it buys them the peace of mind.
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