Would you trust a pop-up shop?

For most people, the answer is: “Of course not.” You may pop in looking for a deal on last fall’s designer blouses or local handicrafts, but the transient nature of the model changes expectations for both the customer and the business. Essentially, what you take away in savings, you are paying for in trust.

For companies looking beyond fly-by-night status, building and sustaining trusting relationships with customers is more than a nice perk; it is an investment that pays off in the long term. Niko Matouschek, a professor of management and strategy at the Kellogg School, explains.

Larry Rosen, chairman and CEO of Canadian menswear chain Harry Rosen Inc., finds that there really is a return on investment to foregoing the short-term sale for long-term customer relationship, if it means being perceived as trustworthy. Small changes—like aligning the company’s rhetoric to its culture—can have a big impact on the bottom line.

The Trust Project is a unique body of knowledge, connecting scholars and executives from diverse backgrounds to share ideas, research, and actionable insights in a series of videos for research and management. Learn more about the project and its development in conjunction with the Kellogg Markets and Customers Initiative.