How can an organization decide the appropriate dividend policy that would suit them? What are the components/elements that the firm has to explicitly scrutinize in order to take a decision on the dividend policy?

Tresor Tshamuganda
MGT 560
The Role of Consumer Trust in Credit Unions/ Banking in the Minority Community
Introduction
In various settings, it is notable that consumer trust plays a significant role in ensuring
that organizations operate most effectively. For instance, for a credit union, it is notable that
consumer trust plays an essential role in ensuring that the union operates in the most required
manner and the different needs of the consumers are met. In simple terms, it can be noted that
consumer trust is the faith that different consumers have in a given company (Yu et al., 2021). It
is essential as it is used for showing confidence in the commitment of the consumers in a given
company to deliver on the different promises it has made to the consumers and do what is right
for them.
Customer trust is an essential aspect of any given organization and significantly plays a
crucial role in business growth. Hence, it is an aspect that should be considered in different
organizations for various reasons. One of the significant reasons why customer trust is supposed
to be prioritized in an organization is that it offers personalized experiences. Customer trust is
featured to be essential for the provision of personalization in the organization. The company
can’t offer a customer experience without understanding customer data. Customer loyalty is also
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encouraged in different settings since it fosters organizational loyalty (Wijaya & Octafilia, 2021).
Customer trust is known for going hand in hand with brand advocacy and loyalty in the
organization. If the company is improving and striving to offer the best experience possible, this
will act as a form of championing the company’s products and services. Customer loyalty is also
essential as it forms an organization’s connections. Customer loyalty is known for leading to
deeper connections in an organization. With that, the research will focus on understanding the
role of consumer trust in credit unions/banking in the minority community.
Literature review
In most circumstances, it is notable that most customers are known for trusting their
financial services provider to manage their transactions and data in the most effective manner.
However, it is notable that only 45% of the customers are known for trusting that their banks or
credit unions tend to care about their long-term financial needs in different settings (Lou &
Yuan, 2019). This is significant as consumer trust in the credit union is known for driving
behaviours, building loyalty in an organization and also the generation of opportunities for
revenue growth in the company if it is fostered appropriately or creating risk if the customers are
known for disengaging with the operation of the company.
Notably, the consequence of mistrust tends to be noted in the different cases of financial
difficulties. Past research indicates that when a significant event such as the loss of a loved one
or divorce occurs, they tend to lead to financial instability. Only about 55% of the customers
seek help from our financial institutions. Notably, more than 30% of those affected turn to
friends and families for support and the required financial needs. While support tends to be more
available, this widespread lack of trust and scepticism within the financial services providers
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leads consumers to turn away in times of need or when they need support in the organization.
This makes it hard for different organizations, such as credit unions, to fail to operate effectively
and improve their operations (Hasan et al., 2021). Hence, customer trust ensures that credit
unions can meet their demands and ensure that the minority group in society are provided with
the required needs in different settings. This often includes times of crises in the community and
hence calls for help from the various financial institutions.
Methodology
To conduct this research, there is a need to come up with an approach that will ensure
that the process is conducted practical and the conclusion is made based on data. The following
will be used for conducting the research.
Research design
The research will use a qualitative research design. This market research approach is
known for focusing on acquiring data through different approaches. It is known to be an
approach that focuses on collecting non-numeric data to understand the different aspects being
analyzed. They are used for revealing the perception of the behaviour of a given target audience
(Cypress, 2018). Hence, this approach is featured to be the most appropriate approach that can be
used for data collection in this research.
Methods of data collection
With the use of qualitative research design, data will be collected using questionnaires
and also one-on-one interviews. A one-on-one interview is known for collecting in-depth data
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about the research participants. This is featured as a personal interview conducted with a
participant at a time. It is an approach since it is known for gathering precise data about the
research’s participants. Questionnaires are another approach that will be used for data collection
(Cypress, 2018). This popular approach is known for offering an efficient, fast and inexpensive
approach for gathering large amounts of data from sizeable sample volumes. This will be
effective for data collection and understanding the different aspects that are supposed to be
understood.
References
Cypress, B. (2018). Qualitative research methods: A phenomenological focus. Dimensions of
Critical Care Nursing, 37(6), 302-309.
Hasan, R., Shams, R., & Rahman, M. (2021). Consumer trust and perceived risk for voicecontrolled artificial intelligence: The case of Siri. Journal of Business Research, 131,
591-597.
Lou, C., & Yuan, S. (2019). Influencer marketing: how message value and credibility affect
consumer trust of branded content on social media. Journal of Interactive
Advertising, 19(1), 58-73.
Wijaya, E., & Octafilia, Y. (2021). Importance of Consumer Satisfaction to Improve Consumer
Trust LinkAja Digital Wallet. Journal of Research in Business, Economics, and
Education, 3(6), 66-77.
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Yu, W., Han, X., Ding, L., & He, M. (2021). Organic food corporate image and customer codeveloping behavior: The mediating role of consumer trust and purchase
intention. Journal of Retailing and Consumer Services, 59, 102377.