• Journal of Distribution Science
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• v.17 no.9
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• pp.67-81
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• 2019

Purpose - The overarching aim of this study is to empirically test the effect of ex-post control mechanisms on multi-dimensional trust and channel performance in franchise systems. Although the franchise system is a vertical marketing channel based on trust between the franchisor and the franchisees, issues related to franchisee's opportunistic behavior have persisted and thus requires research into the effective control system of franchise headquarters. Research design, data, and methodology - In this study, data was collected from 150 franchises to identify the effect of two types of franchising headquarters' control system on the multi-dimensional trust and franchise channel outcome between franchisor and franchisee. To test the hypotheses intended to achieve this aim, structural equations modeling technique is utilized. Results - The results of this research reveal that among the two formal control systems studied (output and process control), output control positively and significantly affects multidimensional trust. Additionally, among the three dimensions of trust employed in this study, only expertise has a positive and significant effect on contract compliance. Equally, only expertise and integrity have a negative and significant effect on opportunistic behavior. Conclusions - The study provides managerial and theoretical insights into understanding ex-post control mechanisms, trust, compliance and opportunistic behaviors in franchise systems.

• 한국경영정보학회:학술대회논문집
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• 2007.11a
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• pp.571-576
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• 2007

Advanced online environment and communication technology have made the e-commerce environments evolved rapidly. In the e-commerce area, one of the most important concepts regarding the relationship between seller and buyer is the "trust." Considering the purpose of purchase and satisfaction of website, the users may face problems such as consumer's transaction security or personal information sharing when they make transactions over web sites. It could be difficult to pursue the goal for the users to purchase product or service over online if the seller or service provider cannot establish trust to the customers. In this paper, through multi-dimensional viewpoints of trust, satisfaction can be accounted for by cue-based trust and experienced trust. The purchase intention mediates the experienced trust when online users purchase products or use online service.

• The Journal of Society for e-Business Studies
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• v.14 no.2
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• pp.1-22
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• 2009

As Internet shopping is getting popular, "trust" has become an important factor for customers to select websites and have repurchase intention. "Trust" has been developed from uni-dimensional concept to multi-dimensional concept in e-Commerce area. From the multi-dimensional viewpoint, this study is to investigate the processes to build trust for online stores. For this purpose, this study classifies the concept of trust into cue-based trust and experience-based trust, and then investigates their relationship in online stores. This study also identifies factors that explain cue-based trust and experience-based trust. The result from questionnaire survey distinguished cue-based trust from experience-based trust and both trust concepts are correlated each other. Second, cue-based trust is explained by perceived size, perceived reputation, and return policy, while experience-based trust is done by navigation, information usefulness and interactivity.

• Management Science and Financial Engineering
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• v.16 no.2
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• pp.81-97
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• 2010

Trust is one of the most important aspects of the relationship between retailers and consumers in e-commerce. Users may have concerns about transaction security or personal information leakage when they engage in transactions over the Internet. It can be difficult to attract customers if the retailers or service providers cannot establish trust with their customers. There have been many studies of trust-building mechanisms between customers and e-storefronts. However, little work has been done on identifying the relationships between customer satisfaction, purchase intention, and trust. In addition, trust building occurs in the pre- and post-purchase phases of an e-commerce transaction, as well as gradually over repeated transactions. Thus we distinguish between cue-based trust and experience-based trust. The objective of this study was to explain the impact of trust on customer satisfaction and purchase intention in relation to e-commerce sites from the perspective of a multi-dimensional concept of trust. We surveyed 350 undergraduate students and obtained 331 responses for analysis. The result of our analysis showed that cue-based trust has a positive relationship with trust based on experience. Although the two concepts of trust have positive relationships with satisfaction, the path coefficient of trust based on experience was higher than that of cue-based trust. In addition, the purchase intention mediates the relationship between cue-based trust and experience-based trust.

• Knowledge Management Research
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• v.15 no.3
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• pp.121-140
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• 2014

Many firms have been utilizing SNSs such as Facebook and Twitter actively in order to boost interactions with customers that promote product and service innovations and effective marketing. Although positive outcomes of the customer interactions in SNSs are expected, there exist few studies on the effects of interactions between customers and firms in the SNS context. This study empirically examines how customer experiences in multi-dimensional interactions (i.e., pragmatic, sociability, usability, and hedonic interaction) in corporate SNSs influence customer trust in the firm, and how customer learning benefits are associated with firm benefits such as gaining customer trust. The results indicate that all four dimensions of customer interactions in SNSs have significant effects on customer learning benefits, which in turn significantly influence customer trust in the firm. Meanwhile, the results reveal that there are also direct relationships between specific dimensions of customer interactions in SNSs and the two dimensions of customer trust (i.e., ability-based and benevolence/integrity-based). Based on the findings, this study diagnoses the status of corporate SNSs in terms of collaboration with customers and provides practical implications for firms which attempt to capitalize on the multi-dimensional customer interactions in SNSs and to facilitate innovative activities with customers.

• Journal of Information Technology Services
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• v.11 no.1
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• pp.59-81
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• 2012

Recently, in the research on online environment such as e-commerce, and internet banking, the conceptual discussion about trust and risk in an effort to explain a user's behavior is briskly underway. Most of the research on trust and risk are setting up causal relationship without clearly establishing the relationship between trust and risk. Accordingly this study conducted a meta-analysis in order to consider the relationship between trust and risk and to take a look at the difference in causal relationship. This study includes a total of 18 research papers which are setting up the causal relationship between trust and risk in online environment among the research papers published in domestic academic journals since 2000. Result of the meta-analysis, showed that the effect size was -0.367 in the path from trust to risk; -0.131 in the path from risk to trust; -0.276 in the bidirectional path between trust and risk. In addition, this study was able to confirm through literature review that there appeared a high effect of path in case where trust and risk were measured by an uni-dimensional concept than by a multi-dimensional concept.

• The Journal of Information Systems
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• v.30 no.2
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• pp.165-188
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• 2021

Purpose This study was conducted to identify the multidimensional role of institutional mechanisms in the linear relationship of satisfaction, trust and repurchase intention, which are used as an important concept in the research of e-commerce. To this end, a research model was proposed by combining concepts which are the concept of perceived effectiveness of institutional mechanisms for overall e-commerce environment(e.g., PEEIM) and the concep of perceived effectiveness of institutional structures(e.g., PEIS) of a specific marketplace based on the social cognitive theory. Design/methodology/approach This study was conducted by dividing the data into two groups to identify institutional mechanisms and trust-building relationships according to the institutional contexts inherent in e-commerce. The institutional contexts were set up for the top two online companies and the bottom two online companies according to the results of the open market brand assessment from 2018 to 2019 in South Korea. Findings The result of this study found that PEIS had a direct impact on trust in both high and low groups respectively whereas PEEIM presented different paradoxical results in high and low groups. In the relationship between the satisfaction and the trust in the vendor of the high group, PEEIM showed negative moderating effects but in the relationship between the trust and the repurchase intention of the low group PEEIM showed positive moderating effects.

• Management & Information Systems Review
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• v.35 no.3
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• pp.23-36
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• 2016

As a new alternative to cash and credit-cards, mobile payment has been attracting world's attention. Although fin-tech, a mobile payment system provider, has been a rising issue, mobile payment systems is not yet widely used domestically. Because trust is the most important element in revitalizing the mobile payment system, we hoped to develop a hierarchical trust model to analyze the multi-dimensional trust factor. In this study, surveys were conducted to identify the components that affect the overall trust of a mobile payment system. It has been concluded that cognitive trust, affective trust, trust in system quality affect the overall trust of the system, and this trust affects the continuance intention of users.

• Journal of Distribution Science
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• v.14 no.7
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• pp.101-114
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• 2016

Purpose - The aim of this study is to investigate the benefit-sharing activities. They affect contract renewal intention between franchisers and franchisees that are linked through a contract with the intention of building their relationship from the level based on dynamic trust. This study will show a new approach on qualitative growth and consolidation of competitive power and may well be able to suggest practical ways to strengthen directions in the field of franchise industries. Research design, data, and methodology - In this study, based on literature review, we separated logistical-supporting activities and non-logistical-supporting activities from benefit-sharing activities. We modeled how benefit-sharing activities influence contract renewal intention of franchisees by dynamic trust. In particular, considering the possibility of trading concepts and characteristics of trust between providers opportunistic behaviors was defined as variables, depending on the situation and dynamic characters reveal their relationship trust concept. That is, dynamic trust having the possibility of changing depending on opportunistic risks and interdependencies by Lewis & Weigert(1985, 2012) was classified into transitional-based trust, calculated based trust, relational-based trust and balance-based on trust. The total of 104 samples from domestic franchisees being with franchisees were collected by using a structural composed questionnaire. Results - The results are as following. Benefit-sharing activities in logistical supporting activities appeared to affect the multidimensional concept of transitional trust, calculated based on trust, relationship-based trust and balance based on trust dynamic trust with all-defined impact. Non-logistical supporting activities appeared to affect significantly the positive (+) to the dynamic trust concept except transitional trust. Lewis & Weigert(1985; 2012) have proposed a dynamic confidence calculated from relations within-based trust relationship based on trust appears to affect the significant positive (+) to the balance-based confidence transactions confidence mechanism of the system side in the verified relationship. Finally, a relationship based on trust and confidence in the balance based on the Influence of dynamic renewed confidence showed significantly affect the positive(+). In particular, the balance based trust showed the acts as a mediating factors between relational trust and confidence and renew calculated. Conclusion - From the above these results, the significance from this study is as following. First, the proposed activity is to share and validate the approach by identifying the potential in the relationship from the contract with building dynamic trust, and one of the ways from the franchise headquarters and affiliated merchants mutual growth through win-win cooperation in sharing activities. Next, the dynamic segmentation confidence to suggest the possibility can be broken down over the validity and reliability test for each concept. In addition, by identifying the relationship between the dynamic level of confidence granular multi-dimensional concept, to determine the level of trust with a dynamic relationship between risk and interdependencies can be possible in franchise industries. In order to maintain and develop their mutual relationship, franchise industries should propose confidence-building steps to promote their quality improvement.

• Journal of Distribution Science
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• v.13 no.4
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• pp.55-64
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• 2015

Purpose - Multi-dimensional prices comprise multiple components such as monthly payments and a number of payments rather than a single lump-sum amount. According to previous studies, an increase in the number of price dimensions leads to a massive amount of cognitive stress resulting in incorrect calculation, and deterioration in the consistency of the price judgment. However, an increase only in the level of complexity of calculating multi-dimensional prices does not always result in a corresponding decrease in the accuracy of price evaluation. Since diverse variables could affect consumers' purchase-decision-making process, the results of price evaluation would be different. In this study, an empirical analysis was performed to determine how the accuracy of price evaluation varies depending on the extent of the complexity of price dimensions using product involvement and brand preference as moderating variables. Research design, data, and methodology - A survey was conducted on 260 students, and 252 effective responses were used for analysis. The data was analyzed using t-test, one-way ANOVA, and two-way ANOVA. In this study, six hypotheses were developed to examine the effect of product involvement and brand preference on consumers' evaluation effort of multi-dimensional prices. Results - As the number of price dimensions increased, accuracy of price evaluation appeared to be low in high involvement, as expected. However, it showed no differences in price evaluation effort when the level of complexity of calculating multi-dimensional prices is low. When a small number of price dimensions are presented in both cases of high and low involvement, accuracy of price evaluation is much higher in a weak brand preference. On the contrary, a strong brand preference enhances an accuracy of price evaluation only in case of low involvement when the number of price dimensions is increased. An interaction effect of product involvement and brand preference on consumers' evaluation of multi-dimensional prices did not exist irrespective of the level of complexity of calculating prices being high or low. Conclusions - When the number of price dimensions is small, consumers' effort for price evaluation shows almost no difference without the moderating effect of involvement, and a weak brand preference leads to a higher accuracy of price evaluation in an effort to make the best selection. No interaction effect of product involvement and brand preference was found except for a main effect of brand preference. When a price is composed of multiple dimensions rendering it more difficult to calculate the final price, the effort for price evaluation was expected to decrease only slightly in case of combination of high involvement and strong brand preference. This is because people have a higher purchase intentions and trust for that particular brand. However, the accuracy of price evaluation was much lower in cases of high involvement, and there was no interaction effect between product involvement and brand preference except for a main effect of involvement and brand preference, respectively.