Skip to main content

Trust-Building in Electronic Markets: Relative Importance and Interaction Effects of Trust-Building Mechanisms

  • Conference paper
Value Creation in E-Business Management (AMCIS 2009)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 36))

Included in the following conference series:

Abstract

We examine the relative and complementary effectiveness of trust-building strategies in online environments. While prior research has examined various antecedents to trust, we investigated two trust-building mechanisms more in depth: Web site trust and vendor reputation. We tried to understand the relative effectiveness of these two important mechanisms to provide online businesses with a clear recommendation of how to establish trust in an effective and efficient manner. Drawing from the literature on trust, we proposed vendor reputation to be more effective than Web site trust. Moreover, we examined a potential complementary effect of these mechanisms so as to provide online businesses with a deeper understanding of how to derive superior trust. We hypothesize a small such effect. The study proposes a laboratory experiment to test the model.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ba, S., Pavlou, P.A.: Evidence of the effect of trust building technology in electronic markets: Price premiums and buyer behavior. MIS Quarterly 26(3), 243–268 (2002)

    Article  Google Scholar 

  2. Ba, S., Whinston, A.B., Zhang, H.: Building trust in the Electronic Market Using an Economic Incentive Mechanism. In: De, P., DeGross, J.I. (eds.) Proceedings of the 1999 International Conference on Information Systems, Charlotte, NC (1999)

    Google Scholar 

  3. Barber, B.: The Logic and Limits of Trust. Rutgers University Press, New Brunswick (1983)

    Google Scholar 

  4. Barnard, C.: The functions of the executive. Harvard University Press, Cambridge (1938)

    Google Scholar 

  5. Benbasat, I., Gefen, D., Pavlou, P.A.: Special issue: Trust in online environments. Journal of Management Information Systems 24(4), 5–11 (2008)

    Article  Google Scholar 

  6. Brynjolfsson, E., Smith, M.D.: Frictionless commerce? A comparison of internet and conventional retailers. Management Science 46(4), 563 (2000)

    Article  Google Scholar 

  7. Byrne, B.M.: Structural Equation Modeling with EQS. Lawrence Erlbaum Associates, Mahwah (2006)

    Google Scholar 

  8. Deutsch, M.: The effect of motivational orientation upon trust and suspicion. Human Relations 13, 123–139 (1960)

    Article  Google Scholar 

  9. Fishbein, M., Ajzen, I.: Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Addison-Wesley, Reading (1975)

    Google Scholar 

  10. Fuller, M.A., Serva, M.A., Benamati, J.: Seeing is believing: The transitory influence of reputation information on E-commerce trust and decision making. Decision Sciences 38(4), 675–699 (2007)

    Article  Google Scholar 

  11. Grover, V., Ramanlal, P.: Six myths of information and markets: Information technology networks, electronic commerce, and the battle for consumer surplus. MIS Quarterly 23(4), 465–495 (1999)

    Article  Google Scholar 

  12. Lim, K.H., Sia, C.L., Lee, M.K.O., Benbasat, I.: Do I trust you online, and if so, will I buy? An empirical study of two trust-building strategies. Journal of Management Information Systems 23(2), 233–266 (2006)

    Article  Google Scholar 

  13. McKnight, D.H., Cummings, L.L., Chervany, N.L.: Initial trust formation in new organizational relationships. Academy of Management Review 23(3), 473–490 (1998)

    Google Scholar 

  14. Milgrom, P., Roberts, J.: Complementarities and fit: Strategy, structure, and organizational change in manufacturing. Journal of Accounting and Economics 19(2), 179–208 (1995)

    Article  Google Scholar 

  15. Norman, D.: The role of automation, in The design of future things (2006), http://www.jnd.org

  16. Pavlou, P.A., Gefen, D.: Building effective online marketplaces with institution-based trust. Information Systems Research 15(1), 37–59 (2004)

    Article  Google Scholar 

  17. Pavlou, P.A., Gefen, D.: Psychological contract violation in online marketplaces: Antecedents, consequences, and moderating role. Information Systems Research 16(4), 372–399 (2005)

    Article  Google Scholar 

  18. Pennington, R., Wilcox, H.D., Grover, V.: The role of system trust in business-to-consumer transactions. Journal of Management Information Systems 20(3), 197–226 (2003)

    Google Scholar 

  19. Porter, M.E.: The five competitive forces that shape strategy. Harvard Business Review, 78–93 (January 2008)

    Google Scholar 

  20. Schurr, P.H., Ozanne, J.L.: Influences on exchange processes: Buyers’ preconceptions of a seller’s trustworthiness and bargaining toughness. Journal of Consumer Research 11(4), 939–953 (1985)

    Article  Google Scholar 

  21. Shocker, A.D., Bayus, B.L., Namwoon, K.: Product complements and substitutes in the real world: The relevance of “other products”. Journal of Marketing 68(1), 28–40 (2004)

    Article  Google Scholar 

  22. Sitkin, S.B., Roth, N.L.: Explaining the limited effectiveness of legalistic “remedies” for Trust/distrust. Organization Science 4(3), 367–392 (1993)

    Article  Google Scholar 

  23. Oh, W., Lucas Jr., H.C.: Information technology and pricing decisions: Price adjustments in online computer markets. MIS Quarterly 30(3), 755–775 (2006)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Tams, S. (2009). Trust-Building in Electronic Markets: Relative Importance and Interaction Effects of Trust-Building Mechanisms. In: Nelson, M.L., Shaw, M.J., Strader, T.J. (eds) Value Creation in E-Business Management. AMCIS 2009. Lecture Notes in Business Information Processing, vol 36. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03132-8_12

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-03132-8_12

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03131-1

  • Online ISBN: 978-3-642-03132-8

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics