Blockchain Technology as a Means for Brand Trust Repair – Empirical Evidence from a Digital Transgression

Abstract

Though much discussion in the realm of blockchain revolves around the concept of trust, research examining blockchain technology as a means for brand trust repair is still at an initial stage. This study conducts an experiment that analyzes blockchain technology as a substantive response to a data breach within a global business-to-consumer information systems application. Thereby, the present study expands trust repair theories to the context of blockchain and branding. Research results indicate that the use of blockchain technology as a reaction to a digital transgression may be able to reinstate brand trust, having a superior impact compared to an approach that uses a centrally managed information systems platform to restore brand trust. Overall, study results suggest that the use of blockchain technology can be an effective component of brand trust repair strategies in the digital space.