Marketing strategies to alleviate risk and build trust for emerging online brands: Case of an Asian cosmetic brand entering into the USA

Abstract

Despite the growth of emerging brands launching their businesses online as their first retail channel, there is a lack of understanding regarding effective marketing strategies specific to them. The present research offers marketing strategies to alleviate risk and build trust, with a particular focus on emerging online fashion brands. The study examines how familiar cues such as store name and brand origin can be used to construct a perception of quality around an unfamiliar brand in order to alleviate risk and build trust. The researchers also observe how consumers’ online purchase experience with a particular product category influences how their quality perception alleviates risk and builds trust. The results indicate that unfamiliar brands can successfully introduce their brands online using familiar cues such as store name as a quality indicator to build trust and alleviate risk. In the context of this study, however, brand origin did not influence quality perception in the case of fashion goods in the USA. Furthermore, consumers with online purchase experience in a specific product category were found to be more confident that quality would alleviate risk. Practical implications are discussed.