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

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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.
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Keywords: emerging brand; marketing strategy; online shopping; perceived quality; perceived risk; trust

Document Type: Research Article

Publication date: May 1, 2014

More about this publication?
  • Journal of Digital & Social Media Marketing is the essential peer-reviewed, professional journal for all those involved in the marketing of products or services using digital channels. Its overriding goal is to provide an authoritative, practitioner-focused forum to support the professional development of all those working in, or entering, the field. As such, the Journal's content is both of direct relevance to the practice of digital marketing and intellectually rigorous.

    Topics range from measuring and improving digital media effectiveness and ROI to search engine optimisation, from social media marketing to partner marketing, from mobile marketing to email marketing, website design, display advertising, pay per click and detailed marketing analytics. In short the Journal focuses on any of the established and emerging digital media, tools and practices requiring new approaches to marketing, branding and understanding customer behavior and attitudes.

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