DIGITAL TRUST AND CONSUMER BEHAVIOR IN HIGH-RISK MARKETS: EVIDENCE FROM NORTHWEST NIGERIA

This study investigates how consumer trust is constructed and operationalized in digital markets under chronic insecurity, focusing on mobile commerce (m-commerce) in Nigeria’s banditry-affected Northwest. Drawing on institutional voids’ theory and digital trust frameworks, the research addresses a critical gap in marketing literature: the lack of consumer-centered empirical analysis in violently contested environments. Using a sequential explanatory mixed-methods design, data were collected from 420 consumers and 48 focus group participants across Zamfara, Katsina, and Kaduna states between January and April 2025. Quantitative analysis via structural equation modeling reveals that perceived insecurity significantly erodes digital trust (β = –0.41, p < 0.001), yet this effect is powerfully offset by social verification cues—such as community referrals, religious signaling, and local identity markers—which emerge as the strongest predictor of trust (β = 0.58, p < 0.001). Crucially, digital trust fully mediates the relationship between SME marketing engagement and purchase intention (indirect effect = 0.39, 95% CI [0.31, 0.47]), confirming its pivotal role in market functionality. Qualitative findings further demonstrate that consumers rely on informal, socially embedded mechanisms rather than technical platform features to assess seller credibility. These results challenge the universality of Western-centric digital marketing models and extend institutional voids theory to consumer behavior, showing that in fragile contexts, trust is conferred through social legitimacy, not coded into technology. The study concludes with actionable, context-specific recommendations for SMEs, fintech firms, and policymakers to foster resilient digital economies in high-risk settings.