The Effect of Financial Innovation, Social Media Marketing, and Brand Authenticity on Consumer Trust in the Retail Sector

Abstract

The objective of this study is to examine how financial innovation, social media marketing, and brand authenticity contribute to building consumer trust in retail brands. A survey was conducted with 300 retail customers to collect data. The independent variables (IVs) include financial innovation, social media marketing, and brand authenticity, while the dependent variable (DV) is consumer trust. A quantitative research approach was used, and data were analyzed using SPSS and PLS-SEM. The results indicate that financial innovation, such as the introduction of flexible payment options and personalized discount systems, positively impacts consumer trust. Social media marketing, especially when brands engage with customers through authentic, transparent communication, also significantly enhances trust. Additionally, brand authenticity, where brands are perceived as genuine and consistent in their messaging, was found to strongly influence consumer trust. The study highlights the importance of these three factors in building trust and fostering long-term relationships with consumers. Retailers should consider adopting financial innovations that align with consumer needs, use social media to create meaningful connections, and ensure their brand authenticity to strengthen consumer trust and loyalty.