Intuition, risk, and the formation of online trust

Models of consumer trust decision-making assume the use of deliberative processes.Associative intuition plays an essential role in risky online purchase decisions.Risk asymmetrically affects deliberation and intuition decision processes.Implications for website design are discussed. Understanding how consumers evaluate website trustworthiness is a critical factor for online vendors. The dominant view espouses a deliberative trust formation process whereby shoppers evaluate security certificates, return policies, user feedback and the like, implying a highly rational underlying trust calculus. In this paper we use a laboratory experiment to explore an alternative perspective, based on the non-rational associative reasoning approach. Our findings show that when faced with a no-risk hypothetical decision about whether or not they would purchase a book from an online bookseller, subjects' decision-making processes were indeed consistent with the dominant deliberative view. However, when confronted with a decision entailing risk (i.e., sharing sensitive personal information with an unknown website), subjects became reliant on their non-rational, gut-level intuition. We adopt a dual-process reasoning theory to make sense of these findings, and recommend that vendors take into account associative reasoning factors when designing online interfaces. Future research directions are provided.