The Credibility of the Firm

Godfather firms gain power by attracting loyal customers, who in turn seek out firms they perceive as credible and capable of fulfilling their high-priority wants. This credibility is crucial for establishing initial relationships with potential customers and is built on three key-dimensions: attractiveness, the appeal the firm generates in its representation towards others; expertise, the perceived authority and competence of the firm in its activities; and trustworthiness, the reliability of the firm in fulfilling its promises. In future markets, a firm must be genuinely capable of delivering on its promises to foster a strong, lasting bond of loyalty with its customers. The transition from a traditional “Knowledge economy” to a “Credibility economy” underscores the importance of the quality of information over its quantity, when the ability to distinguish credible information will be paramount.