Trust-based marketing focuses on customer advocacy techniques that assist consumers in making informed purchase decisions based on comprehensive marketplace options and equitable advice.
Companies therefore can no longer rely on traditional models of "push marketing" in which a product's positive attributes may mask unsuitable characteristics.
The theory is that in competitive markets, companies need to approach their customers with respect and acknowledge that product and competitor information is easily accessible.
"[2] According to authors Dan Kennedy and Matt Zagula, trust-based marketing is used by Ponzi schemers such as Bernie Madoff, who was successful despite the fact that “[none] could explain exactly what Bernie did with their money or how he consistently generated above-par returns.”[3] Urban originally tested his hypothesis with a prototype site for General Motors called TruckTown which provided unbiased comparisons of competing truck products.
Urban continued to test his theory with projects such as AutoChoiceAdvisor, a website to help car shoppers find the vehicle that best suits their needs) and a Medicare Insurance advisor called PlanPrescriber.