Brand trust
in crises:
Brands as an anchor.

Brands create stability in the crisis

Why do brands become trusted partners in times of crisis? In times of crisis, more people turn to branded products, as the current coronavirus pandemic has once again shown. But why do brands become trusted partners in times of crisis and how have some brands capitalised on this?

Brand trust: The brand as security

In uncertain times, we long for a feeling of security. Subconsciously, this also changes our purchasing behaviour, as brands can serve this need for security. They create a feeling of: ‘You know what you have.’ Although it seems reasonable to assume that people pay more attention to their money when shopping in times of crisis, the 2009 financial crisis had the opposite effect. During this time of all times, consumers suddenly placed more value on branded products again.

However, only brands that have already built up brand trust over a longer period of time can win here. The background: brands that have already built up a reputation for safety, reliability, family, cohesion and similar values benefit the most in times of crisis.

You don't treat yourself to anything else

Another reason why consumers have increasingly turned to branded products during the coronavirus pandemic is the involuntary sacrifice we have had to make. The phrase ‘you don't treat yourself to anything else’ takes on an interesting flavour, especially in times of crisis. In times when you have to ‘tighten your belt’ and cut back in various areas of life, people are more willing to treat themselves to something. The sacrifice has to be balanced out. ‘If I can only go to the DIY store, then I can treat myself to a special pair of hedge trimmers and if I can no longer go to the cinema, then I can treat myself to a particularly chic branded sofa.’

This behaviour is also linked to brand trust. Why? Customers must already have the impression that the products of a particular brand have advantages over other products. Brands that have already built up a reputation for product quality, excellent service or an exclusive image are particularly likely to be shortlisted. This can also include exclusive fashion brands that give us the feeling of being something special. The feeling of standing out from the crowd with expensive branded products and thereby gaining the admiration of others can ‘close gaps’ left by deprivation and lack of security in other areas of life, especially in times of crisis.
Rebellion or counter-reaction against things that we previously followed strictly can also be a reaction to crises. For example: ‘If I followed a strict diet before the crisis, but now have to give up almost everything I enjoy due to external factors, I will break this pattern.’ This can include buying expensive cigars, speciality chocolate or a branded whisky, even though you previously attached great importance to a healthy lifestyle.

Loyalty and solidarity

In times of crisis, loyalty and cohesion have a higher value: people move closer together again and a sense of community is created. In uncertain times, people also want to consciously save resources in order to support the big picture and be part of the community. There is less experimentation and support is given to those who offer guidance - this also applies to brands. During the coronavirus pandemic, some brands have capitalised on this consumer need and built trust at the same time. Textile manufacturer Mey, for example, has sewn protective clothing during the coronavirus pandemic. Some alcohol companies, such as Jägermeister, have donated ethanol to disinfectant manufacturers. This has had a positive effect on brand image. According to the Edelman Trust Barometer 2020 Special Report ‘Brand trust and the coronavirus pandemic’, which was conducted from 23 to 26 March, ‘almost half of Germans (48%; globally: 62%) agree that Germany will not survive the coronavirus crisis without brands playing a decisive role in overcoming the current challenges’ (Edelman GmbH: Edelmann Trust Barometer 2020 Special Report: Brand trust and the coronavirus pandemic). Brands that are playing an active role in the crisis, such as Jägermeister or Mey, are therefore benefiting. The Edelman Trust Barometer is an annual study on trust in governments, non-governmental organisations (NGOs), business and the media, which was conducted for the 20th time this year. According to the study, ‘most Germans see brands as a trustworthy source of information about the coronavirus (74 per cent; globally: 84 per cent). 41 per cent of respondents in Germany also currently think that brands and companies are responding faster and more effectively to the pandemic than the government (globally: 55 per cent)’ (Edelman GmbH: Edelmann Trust Barometer 2020 Special Report: Brand trust and the coronavirus pandemic).

The brand image - the foundation of brand trust

Why is brand trust high in crises? In crises, people long for trust and security. Brands that evoke a clear image in the minds of consumers can convey this feeling of security and trust. "(...) trustworthy brands dramatically reduce risks such as bad purchases. Customers no longer have to spend time comparing prices and quality. Mistrust is stressful, trust is relieving (...)’ (Brand Trust GmbH: Building brand trust - this is how it works). Trust in brands is particularly important in times of crisis.

The brand image

However, for customers to associate trust and security with a brand, this brand image must be present in their minds. ‘The most important cornerstones for brand trust are (...) product quality and a clear brand image that can take root in people's minds.’ (Management Circle: Brand trust in times of crisis). The brand image is the external image of your brand - in other words, the associations that customers have with your brand. It is a firmly anchored image.
This is how you build a positive brand image:  

• have a clearly defined purpose and ‘reason why’
• develop a mission statement and a clear brand identity
• through interactions with customers
• offer consistently high product quality
• put the customer benefit in the foreground
• make a central promise
• Provide superior service and respond to complaints
• Establish brand recognition
• demonstrate transparency and truthfulness

In order to develop a positive brand image and maintain it in the long term, customer trust must be gained. To do this, a brand must have impressed customers with its products or services over the long term. This means that customers must have already established a relationship with the brand - even before the crisis.