An investigation of significant factors affecting consumer trust in e -commerce

An Investigation Of Significant Factors Affecting Consumer Trust In E-Commerce by Changfeng Chen Dr. John T. Bowen, Examination Committee Chair Professor of Hotel Administration University o f Nevada Las Vegas The m ^or research goal of this dissertation was to identify the important factors that signihcantly influence the formation of a consumer's overall trust in a website. By collecting empirical data and applying multivariate statistical analysis, this study achieved this goal. The data for this study were collected through a web page-based survey. Principal component factor analysis was applied to obtain composite scores for some constructs measured with multiple items. Stepwise multiple linear regression analysis was employed to test the hypotheses. A total of 6ve hypotheses with 20 factors were posited and tested in this study. Six factors were identiSed to have significant influence on the harmation of a consumer's overall trust in a website. These signiScant factors were reputation, website characteristics, service quality, overall satisfaction, perceived risk, and education. This study also examined other relationships as suggested in the model of consumer trust in e-commerce and determined that trust indeed have strong impact on two major dimensions of customer loyalty, purchase intention and likelihood of recommendation.

[1]  R. Lewicki,et al.  Trust in relationships: A model of development and decline. , 1995 .

[2]  Barton A. Weitz,et al.  Determinants of Continuity in Conventional Industrial Channel Dyads , 1989 .

[3]  P. Schurr,et al.  Influences on exchange processes: Buyers' preconceptions of a seller's trustworthiness and bargaining toughness. , 1985 .

[4]  Richard D. Heimovics.  Trust and Influence in an Ambiguous Group Setting , 1984 .

[5]  G. Zsidisin,et al.  The Identification and Measurement of Quality Dimensions in Health Care: Focus Group Interview Results , 1998, Health care management review.

[6]  Kim Bartel Sheehan,et al.  Using E-mail To Survey Internet Users In The United States: Methodology And Assessment , 2006, J. Comput. Mediat. Commun..

[7]  Gretchen M. Spreitzer,et al.  Explaining How Survivors Respond to Downsizing: The Roles of Trust, Empowerment, Justice, and Work Redesign , 1998 .

[8]  Claire Payne,et al.  Engendering trust in e‐commerce: a study of gender‐based concerns , 2002 .

[9]  Frederick E. Webster,et al.  Interpersonal Communication and Salesman Effectiveness , 1968 .

[10]  R. Rummel.  Applied Factor Analysis , 1970 .

[11]  G. Zaltman,et al.  Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations , 1992 .

[12]  Morton Deutschi.  The Effect of Motivational Orientation upon Trust and Suspicion , 1960 .

[13]  F. Langerak,et al.  Non-Probability Sampling for WWW Surveys: A Comparison of Methods , 1998 .

[14]  S. Kiesler,et al.  Response Effects in the Electronic Survey , 1986 .

[15]  Stowe Shoemaker,et al.  Segmentation Of The Senior Pleasure Travel Market , 1989 .

[16]  I. Fras.  Identity: Youth and Crisis , 1968 .

[17]  P. Bentler,et al.  Attitudes "cause" behaviors: A structural equation analysis. , 1981 .

[18]  T. Lang.  The effect of the Internet on travel consumer purchasing behaviour and implications for travel agencies , 2000 .

[19]  R. Keeney,et al.  The Value of Internet Commerce to the Customer , 1999 .

[20]  Gurpreet Dhillon,et al.  Interpreting Dimensions of Consumer Trust in E-Commerce , 2003, Inf. Technol. Manag..

[21]  Charles J. Kacmar,et al.  Developing and Validating Trust Measures for e-Commerce: An Integrative Typology , 2002, Inf. Syst. Res..

[22]  Lawrence A. Crosby,et al.  Relationship Quality in Services Selling: An Interpersonal Influence Perspective: , 1990 .

[23]  Venkatesh Shankar,et al.  Online trust: a stakeholder perspective, concepts, implications, and future directions , 2002, J. Strateg. Inf. Syst..

[24]  Mary Ann Eastlick,et al.  An online prepurchase intentions model: The role of intention to search , 2001 .

[25]  Seyhmus Baloglu,et al.  A model of destination image formation , 1999 .

[26]  Mark S. Johnson,et al.  The Different Roles of Satisfaction, Trust, and Commitment in Customer Relationships , 1999 .

[27]  R. Kasperson,et al.  Social Distrust as a Factor in Siting Hazardous Facilities and Communicating Risks , 1992 .

[28]  Glen L. Urban,et al.  Determinants and Role of Trust in E-Business: A Large Scale Empirical Study , 2003 .

[29]  R. Watson,et al.  Attractors: Building Mountains in the Flat Landscape of the World Wide Web , 1998 .

[30]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[31]  L. Zucker.  Production of trust: Institutional sources of economic structure, 1840–1920. , 1986 .

[32]  D. Good,et al.  Individuals, Interpersonal Relations, and Trust , 2000 .

[33]  M. Koufaris,et al.  CUSTOMER TRUST ONLINE: EXAMINING THE ROLE OF THE EXPERIENCE WITH THE WEB SITE , 2002 .

[34]  S. Lindskold.  Trust development, the GRIT proposal, and the effects of conciliatory acts on conflict and cooperation. , 1978 .

[35]  J. G. Holmes,et al.  Trust in close relationships. , 1985 .

[36]  Traci B Warrington,et al.  BUILDING TRUST TO DEVELOP COMPETITIVE ADVANTAGE IN E‐BUSINESS RELATIONSHIPS , 2000 .

[37]  L. Telser.  A Theory of Self-enforcing Agreements , 1980 .

[38]  Janet H. Gaines,et al.  Upward Communication in Industry: An Experiment , 1980 .

[39]  J. Lewis,et al.  Trust as a Social Reality , 1985 .

[40]  Mary Ann Eastlick.  Consumer intention to adopt interactive teleshopping : working paper , 1996 .

[41]  Kathryn M. Kimery,et al.  THIRD-PARTY ASSURANCES: MAPPING THE ROAD TO TRUST IN E-RETAILING , 2002 .

[42]  L. Cronbach,et al.  Construct validity in psychological tests. , 1955, Psychological bulletin.

[43]  Roger N. Blakeney,et al.  A Transactional View of the Role of Trust in Organizational Communication , 1986 .

[44]  S. Sitkin,et al.  Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust , 1993 .

[45]  C. Hill.  Cooperation, Opportunism, and the Invisible Hand: Implications for Transaction Cost Theory , 1990 .

[46]  Christine B. Smith,et al.  Casting the Net: Surveying an Internet Population , 2006, J. Comput. Mediat. Commun..

[47]  Sung-joon Yoon,et al.  The antecedents and consequences of trust in online-purchase decisions , 2002 .

[48]  John A. Czepiel.  Service encounters and service relationships: Implications for research , 1990 .

[49]  A. Parasuraman,et al.  SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. , 1988 .

[50]  Donald R. Cooper Schindler.  Business Research Methods - 8/E , 2004 .

[51]  J. G. Holmes.  Trust and the appraisal process in close relationships. , 1991 .

[52]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .

[53]  Robert E. Spekman,et al.  Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques , 1994 .

[54]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[55]  P. Blau.  Exchange and Power in Social Life , 1964 .

[56]  Sirkka L. Jarvenpaa,et al.  Consumer trust in an Internet store , 2000, Inf. Technol. Manag..

[57]  M. Deutsch.  Trust and suspicion , 1958 .

[58]  J. Pitkow,et al.  Surveying the Territory: GVU's Five WWW User Surveys , 1997 .

[59]  Robert E. Spekman,et al.  Just-In-Time Exchange Relationships in Industrial Markets , 1988 .

[60]  J. Gray.  The Dawning of a New Era , 2004 .

[61]  B. R. Schlenker,et al.  The effects of personality and situational variables on behavioral trust. , 1973, Journal of personality and social psychology.

[62]  Haemoon Oh,et al.  Diners' Perceptions of Quality, Value, and Satisfaction , 2000 .

[63]  S. Shapiro.  The Social Control of Impersonal Trust , 1987, American Journal of Sociology.

[64]  Howard B. Lee,et al.  A First Course in Factor Analysis 2nd Ed , 1973 .

[65]  P. Bentler,et al.  Models of attitude–behavior relations. , 1979 .

[66]  Matthew K. O. Lee,et al.  A Trust Model for Consumer Internet Shopping , 2001, Int. J. Electron. Commer..

[67]  Anthony D. Miyazaki,et al.  Consumer Perceptions of Privacy and Security Risks for Online Shopping , 2001 .

[68]  J. Bowen,et al.  The relationship between customer loyalty and customer satisfaction , 2001 .

[69]  Aneil Mishra.  ORGANIZATIONAL RESPONSES TO CRISIS: THE CENTRALITY OF TRUST , 1996 .

[70]  A. Diamantopoulos,et al.  A Measure of Export Market Orientation: Scale Development and Cross-cultural Validation , 1999 .

[71]  Robert Hallett,et al.  Understanding Seat‐Belt Intentions and Behavior: A Decision‐Making Approach1 , 1989 .

[72]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[73]  James E. Pitkow,et al.  Emerging trends in the WWW user population , 1996, CACM.

[74]  O. Williamson.  Calculativeness, Trust, and Economic Organization , 1993, The Journal of Law and Economics.

[75]  Shankar Ganesan.  Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[76]  David Gefen,et al.  Reflections on the dimensions of trust and trustworthiness among online consumers , 2002, Data Base.

[77]  Mark S. Granovetter.  ECONOMIC ACTION AND SOCIAL STRUCTURE: , 2022, The New Economic Sociology.

[78]  K. Giffin.  The contribution of studies of source credibility to a theory of interpersonal trust in the communication process. , 1967, Psychological bulletin.

[79]  M. O'Neill,et al.  Quality evaluation in on‐line service environments: an application of the importance‐performance measurement technique , 2001 .

[80]  G. Haines,et al.  The Theory of Buyer Behavior. , 1970 .

[81]  K. Sheehan,et al.  An investigation of gender differences in on-line privacy concerns and resultant behaviors , 1999 .

[82]  T. E. Dielman.  Applied Regression Analysis for Business and Economics , 1990 .

[83]  Ting-Peng Liang,et al.  An empirical study on consumer acceptance of products in electronic markets: a transaction cost model , 1998, Decis. Support Syst..

[84]  Colin Camerer,et al.  Not So Different After All: A Cross-Discipline View Of Trust , 1998 .

[85]  Matthew K. O. Lee,et al.  Trust in Internet Shopping: Instrument Development and Validation through Classical and Modern Approaches , 2001, J. Glob. Inf. Manag..