The relationship between trust and business success

Question 1

Define ‘trust’.

Answer 1

(Of a person) To believe in reliability, truth, or ability.

Question 2

What are the three key ingredients for a trusting relationship between a business and its clients?

Answer 2

Competence, sincerity, and reliability.

Question 3

Explain how AirBnB attempted to foster trust between hosts and their prospective guests.

Answer 3

Their website provided suggestions as to how guests might introduce themselves; blind reviews so that customers could get an authentic impression of a host; and insurance cover for hosts.

Question 4

Name two countries in which Uber has been forced to cease doing business.

Answer 4

Denmark and Hungary.

Question 5

How many UK VWs were affected by the 2015 emissions scandal?

Answer 5

1.2 million

Question 6

How long was Royal Mail’s monopoly on UK postage?

Answer 6

350 years.

Question 7

How much has the emissions scandal cost VW?

Answer 7

In excess of £16bn.

Question 8

What might be an alternative explanation for the effect of scandal on VW’s stock price, aside from damage to their reputation?

Answer 8

Fines, retrofits, and legal fees in excess of £16bn.