• Title/Summary/Keyword: online trust

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The Effects of Institutional Mechanisms on the Trust of Online Business in e-Commerce (전자상거래에서 온라인 업체의 신뢰에 미치는 제도적 메커니즘의 영향)

  • Roh, Yoonho;OK, Seok-Jae
    • The Journal of Information Systems
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    • v.28 no.2
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    • pp.73-92
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    • 2019
  • Purpose This study conducted an empirical study on the influence of institutional mechanisms on the formation of customer trust among leading online businesses. This study focused on the construct of PEEIM(Perceived Effectiveness of e-Commerce Institutional Mechanisms) which is the perceived recognition of institutional mechanisms for e-Commerce in general and the construct of PEIS which is the perceived recognition of institutional mechanisms that are implemented by vendors. Design/methodology/approach The online and offline surveys were conducted for the leading online shopping vendors in Korea and 292 data were used for the empirical analysis. The research model was tested using partial least squares structural equation modeling (PLS-SEM) in this study. The full measurement model including the formative second-order constructs was examined with the exploratory factor analysis. The structural model was analyzed via a two-stage approach. To analyze the research model this study used Smart PLS 2.0 program. Findings The findings showed that PEEIM negatively moderates the relationship between satisfaction in vender and trust in vender, but had no moderating effect between trust in vender and repurchase intention. In addition, the institutional mechanisms of vendors(PEIS) have been shown to have a direct impact on the vender's trust.

Effects of Information Quality of Online Travel Agencies on Trust and Continuous Usage Intention: An Application of the SOR Model

  • LEE, Seul Ki;MIN, So Ra
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.971-982
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    • 2021
  • The purpose of this study was to investigate the relationship between information quality, Online Travel Agency (OTA) trust, and continuous usage intention provided by OTA through the application of the SOR(Stimulus-Organism-Response) model. To achieve the purpose of the study, 234 responses were used for analysis, and the hypotheses were tested through the SPSS v.21 program and AMOS v.21 programs. The research results can be classified into the following three categories. First, it was determined that accuracy, timeliness, and usefulness among the factors for information quality had a significant positive effect on OTA trust and continuous usage intention. Second, it was determined that OTA trust was found to have a significant positive effect on continuous usage intention. Third, it was determined that OTA trust had an indirect effect on the relationship between accuracy, timeliness, usefulness, and continuous usage intention among the factors for information quality. This study looked at the lower dimension of information quality, which was insufficient in the field of OTA. This study can be used as basic data to, in practice, build a user-centered informational provision environment by identifying the factors that promote the continuous usage intention of consumers, which is linked to the revenue of online travel agencies.

Consumer Behavior towards E-Commerce in the Post-COVID-19 Pandemic: Implications for Relationship Marketing and Environment

  • DANG, Hoang Linh;BAO, Nguyen Van;CHO, Yooncheong
    • Asian Journal of Business Environment
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    • v.13 no.1
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    • pp.9-19
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    • 2023
  • Purpose: The purpose of this research paper is to explore what factors that affect customer purchase decisions in the online environment, particularly after the COVID-19 pandemic in the case of Vietnamese customers. Research Design, Data and Methodology: To clarify which factor has the most significant impacts on online purchasing decision-making process, this study proposed a research model including factors such as customer trust, proposensity to trust, system assurance, the quality of website design, attitude, and customer satisfaction. This study collected the data via online survey. Data analysis was conducted by AMOS 25.0 using the Structural Equation Modeling (SEM) method. Result: The results of this study shows that the purchase decisions were positively affected by customers' attitude, satisfaction, trust, and the quality of websites design. Additionally, factors such as perceived size and reputation and system assurance, have impacts on buyers' trust, while the propensity to trust has no significant impact. Conclusion: This study provides managerial implications. The results provide which factors should be improved to foster trust, attitude, customer satisfaction, and purchase decision in the online environment. The results also provide managerial implication on marketing strategies how to enhance better relationships with customers and to consider environmental issues in the era of post COVID-19.

A Comparative Study on Consumer Attitude and Intention toward Online Food Purchasing in Korea and Vietnam: The Moderating Effect of Nationality

  • Chung, Jae-Eun;Nguyen, Thi Bich Loan;Nguyen, Thi Thu Ha;Moon, Hee-Cheol
    • Journal of Korea Trade
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    • v.25 no.1
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    • pp.47-64
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    • 2021
  • Purpose - This paper empirically analyzed the determinants of the online food market in Korea and Vietnam as representatives of the developed market and emerging market. The online food market can be regarded as having a high potential value. This study aims to suggest the appropriate implications for each developed market and emerging market by empirically comparing and analyzing customers' online food purchase determinants in the growth change of the online food market. Design/methodology - The empirical model of this study was established with the motif of the TAM+Trust model suggested by Nguyen et al.'s (2019) existing theoretical framework. Davis's (1989) TAM model was adopted to establish a framework related to the determinants that consumers would accept, for the online food purchasing method. Then, the trust variable is added to the framework which is regarded as an important effector especially in food related researches. In this study's comparative analysis, the multi-group structural equation modeling analysis was implemented. Findings - The main finding of this study can be summarized as that the moderating effect of nationality is significant. This means that there is an obvious difference between the developed online food market and the emerging online food market. In addition, as the growth of the online market changes, the significant determinants of consumers' attitudes and purchase intentions are somewhat different. However, the usefulness of online food purchasing methods and the trust of websites were analyzed as significant factors. Originality/value - Although the potential of the online food market is abundant, studies on the determinants of customer's attitude and purchase intention are insufficient. Moreover, comparative studies between countries have not been conducted in existing studies. Therefore, the research value of this paper can be explained in that it has suggested implications for the continued growth of the online food market.

Prediction Method for the Implicit Interpersonal Trust Between Facebook Users (페이스북 사용자간 내재된 신뢰수준 예측 방법)

  • Song, Hee Seok
    • Journal of Information Technology Applications and Management
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    • v.20 no.2
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    • pp.177-191
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    • 2013
  • Social network has been expected to increase the value of social capital through online user interactions which remove geographical boundary. However, online users in social networks face challenges of assessing whether the anonymous user and his/her providing information are reliable or not because of limited experiences with a small number of users. Therefore. it is vital to provide a successful trust model which builds and maintains a web of trust. This study aims to propose a prediction method for the interpersonal trust which measures the level of trust about information provider in Facebook. To develop the prediction method. we first investigated behavioral research for trust in social science and extracted 5 antecedents of trust : lenience, ability, steadiness, intimacy, and similarity. Then we measured the antecedents from the history of interactive behavior and built prediction models using the two decision trees and a computational model. We also applied the proposed method to predict interpersonal trust between Facebook users and evaluated the prediction accuracy. The predicted trust metric has dynamic feature which can be adjusted over time according to the interaction between two users.

The Mediating Role of Perceived Risk in the Relationships Between Enduring Product Involvement and Trust Expectation (지속적 제품관여도와 소비자 요구신뢰수준 간의 영향관계: 인지된 위험의 매개 역할에 대한 실증분석을 중심으로)

  • Hong, Ilyoo B.;Kim, Taeha;Cha, Hoon S.
    • Asia pacific journal of information systems
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    • v.23 no.4
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    • pp.103-128
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    • 2013
  • When a consumer needs a product or service and multiple sellers are available online, the process of selecting a seller to buy online from is complex since the process involves many behavioral dimensions that have to be taken into account. As a part of this selection process, consumers may set minimum trust expectation that can be used to screen out less trustworthy sellers. In the previous research, the level of consumers' trust expectation has been anchored on two important factors: product involvement and perceived risk. Product involvement refers to the extent to which a consumer perceives a specific product important. Thus, the higher product involvement may result in the higher trust expectation in sellers. On the other hand, other related studies found that when consumers perceived a higher level of risk (e.g., credit card fraud risk), they set higher trust expectation as well. While abundant research exists addressing the relationship between product involvement and perceived risk, little attention has been paid to the integrative view of the link between the two constructs and their impacts on the trust expectation. The present paper is a step toward filling this research gap. The purpose of this paper is to understand the process by which a consumer chooses an online merchant by examining the relationships among product involvement, perceived risk, trust expectation, and intention to buy from an e-tailer. We specifically focus on the mediating role of perceived risk in the relationships between enduring product involvement and the trust expectation. That is, we question whether product involvement affects the trust expectation directly without mediation or indirectly mediated by perceived risk. The research model with four hypotheses was initially tested using data gathered from 635 respondents through an online survey method. The structural equation modeling technique with partial least square was used to validate the instrument and the proposed model. The results showed that three out of the four hypotheses formulated were supported. First, we found that the intention to buy from a digital storefront is positively and significantly influenced by the trust expectation, providing support for H4 (trust expectation ${\rightarrow}$ purchase intention). Second, perceived risk was found to be a strong predictor of trust expectation, supporting H2 as well (perceived risk ${\rightarrow}$ trust expectation). Third, we did not find any evidence of direct influence of product involvement, which caused H3 to be rejected (product involvement ${\rightarrow}$ trust expectation). Finally, we found significant positive relationship between product involvement and perceived risk (H1: product involvement ${\rightarrow}$ perceived risk), which suggests that the possibility of complete mediation of perceived risk in the relationship between enduring product involvement and the trust expectation. As a result, we conducted an additional test for the mediation effect by comparing the original model with the revised model without the mediator variable of perceived risk. Indeed, we found that there exists a strong influence of product involvement on the trust expectation (by intentionally eliminating the variable of perceived risk) that was suppressed (i.e., mediated) by the perceived risk in the original model. The Sobel test statistically confirmed the complete mediation effect. Results of this study offer the following key findings. First, enduring product involvement is positively related to perceived risk, implying that the higher a consumer is enduringly involved with a given product, the greater risk he or she is likely to perceive with regards to the online purchase of the product. Second, perceived risk is positively related to trust expectation. A consumer with great risk perceptions concerning the online purchase is likely to buy from a highly trustworthy online merchant, thereby mitigating potential risks. Finally, product involvement was found to have no direct influence on trust expectation, but the relationship between the two constructs was indirect and mediated by the perceived risk. This is perhaps an important theoretical integration of two separate streams of literature on product involvement and perceived risk. The present research also provides useful implications for practitioners as well as academicians. First, one implication for practicing managers in online retail stores is that they should invest in reducing the perceived risk of consumers in order to lower down the trust expectation and thus increasing the consumer's intention to purchase products or services. Second, an academic implication is that perceived risk mediates the relationship between enduring product involvement and trust expectation. Further research is needed to elaborate the theoretical relationships among the constructs under consideration.

Is Trust Transitive and Composable in Social Networks?

  • Song, Hee Seok
    • Journal of Information Technology Applications and Management
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    • v.20 no.4
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    • pp.191-205
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    • 2013
  • Recently, the topic of predicting interpersonal trust in online social networks is receiving considerable attention, because trust plays a critical role in controlling the spread of distorted information and vicious rumors, as well as reducing uncertainties and risk from unreliable users in social networks. Several trust prediction models have been developed on the basis of transitivity and composability properties of trust; however, it is hard to find empirical studies on whether and how transitivity and composability properties of trust are operated in real online social networks. This study aims to predict interpersonal trust between two unknown users in social networks and verify the proposition on whether and how transitivity and composability of trust are operated in social networks. For this purpose, we chose three social network sites called FilmTrust, Advogato, and Epinion, which contain explicit trust information by their users, and we empirically investigated the proposition. Experimental results showed that trust can be propagated farther and farther along the trust link; however, when path distance becomes distant, the accuracy of trust prediction lowers because noise is activated in the process of trust propagation. Also, the composability property of trust is operated as we expected in real social networks. However, contrary to our expectations, when the path is synthesized more during the trust prediction, the reliability of predicted trust did not tend to increase gradually.

A Computational Model of Trust and Its Applications in Internet Transactions (인터넷 거래에서 신뢰도의 계산적 모델 및 적용)

  • Noh, Sang-Uk
    • Journal of Internet Computing and Services
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    • v.8 no.4
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    • pp.137-147
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    • 2007
  • As Web-based online communities are rapidly growing, the agents in social groups need to know their measurable belief of trust for safe andsuccessful interactions. In this paper, we propose a computational model of trust resulting from available feedbacks in online communities. The notion of trust can be defined as an aggregation of consensus given a set of past interactions. The averagetrust of an agent further represents the center of gravity of the distribution of its trustworthiness and untrustworthiness. And then, we precisely describe the relationship between reputation, trust, and averagetrust through a concrete example of their computations. We apply our trust model to online internet settings in order to show how trust mechanisms are involved in a rational decision-making of the agents.

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The Effect E-Wom Website Attractiveness E-Trust and Innovation on Purchase Decision Online Sales

  • SOLIKHAH, Efa Wakhidatus;FATMAWATI, Indah;WIDOWATI, Retno;SUYANTO, M
    • Journal of Distribution Science
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    • v.20 no.11
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    • pp.61-69
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    • 2022
  • Purpose: Technological developments make the business competition even tighter. Digitalization makes it easier for business people in their efforts to encourage the formation of consumer buying behavior because of the availability of effective and efficient means of delivering information to be used to make purchasing decisions. The purpose of this study was to determine the effect of E-Wom and Website Attractiveness on E-Trust and Purchase Decision of online sales on Instagram with innovation acting as a moderating variable. Research design, data and methodology: This research sample is 170 Instagram users who have made online purchases from the local fashion brand. This research is quantitative explanative with data collection using questionnaires and analysis techniques using the Structural Equation Modeling (SEM) approach using AMOS. Results: The results showed that E-wom had a significant positive effect on Purchase decisions. Web Attractiveness has no significant effect on Purchase Decision. Ewom has a significant positive effect on E-trust. Web Attractiveness has a significant positive effect on E-trust. E-Trust has no significant effect on purchase decisions. Conclusions: Innovation can moderate the effect of E-trust on Purchase decisions. Purchase Decisions can be influenced by E-wom and E-trust, but not Web Attractiveness.

Auction Experience, Category Knowledge and Trust in eBay Stamp Auctions

  • Kim, Tae-Ha;Jaju, Anupam
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.33-49
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    • 2010
  • We empirically examine the impact of online auction knowledge and category-specific knowledge on the final price of online auctions. Specifically, we question how the relationship between buying and selling experiences affects the final prices of online auctions. Related to the trust between buyers and sellers, we examine the multiple interactions between a buyer-seller pairand aim to identify how these repeated transactions influence the final price. To contrast these effects with other product related factors, we focus on so called 'common value' auctions of vintage stamps on eBay, in which the ex-post value of the product is the same among participating agents’ perceived value. Online auction of stamps provides a representative setting to examine the relationship between market experience and the auction participation behavior in the common value auction, as it provides the book value of stamp as well as price variation across individual buyers with different expertise levels. Our analysis of over 3000 stamps auctions on eBay indicates a significantly high frequency of buyer-seller (pair) interactions, thus suggesting a 'relationship view' of auctions. The work validates five hypotheses derived from the existing theory in economics, marketing, and information systems. Through the common-value auction data, we find that seller's online auction experience and category-specific experience favor sellers by increasing the final price. However, buyer's online auction experience does not affect the final price, but buyer's category-specific experience favors buyers by decreasing the final price. We find that the trust between two trading parties increases the final price.