Customer Confidence as a Business Asset: The Role of Transparency and Data Ethics in Loyalty and Reputational Resilience

Didit Darmawan

Authors

Didit Darmawan Universitas Sunan Giri Surabaya, Indonesia

Keywords:

customer confidence; transparency; data ethics; privacy; customer loyalty; repeat purchase; word of mouth; reputation crisis; business resilience

Abstract

Customer confidence is a strategic asset that determines the quality of long-term relationships between customers and companies, especially in the context of digital services that rely on data management. This research aims to synthesize the literature on how transparency and data ethics contribute to the formation of customer confidence and its impact on repeat purchases, word of mouth, and business resilience when facing a reputation crisis. The method used is a qualitative literature study with thematic synthesis, through a process of coding, grouping themes, and formulating analytical themes to coherently link key concepts. The synthesis results show that transparency oriented towards comprehensibility and consistency of communication strengthens perceptions of integrity, while data ethics strengthens customer confidence that the company respects their autonomy and dignity through restrictions on data use, provision of real control, and accountability when problems arise. The confidence that is formed reduces the perception of risk, increases the tendency for repeat purchases, and encourages positive word of mouth because customers feel safe recommending the company. In a reputation crisis, it is essential to understand that confidentiality is a relational reserve that prevents a decline in loyalty and provides space for reputation recovery through transparent and responsible responses. This research concludes that transparency and data ethics should be understood as relational strategies that influence business outcomes through the mechanism of confidence, not merely administrative compliance.

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