Identification of factors influencing building initial trust in e-commerce

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, Damghan University, Damghan, Iran

2 Department of IT Engineering, Graduate University of Advanced Technology, Kerman, Iran

3 Department of Software Engineering, Damghan University, Damghan, Iran

Abstract

Nowadays, consumer trust is identified as one of the most important factors in electronic commerce (e-commerce) growth. This has led much research to investigate the role of trust in e-commerce and determine the factors which influence trust in this area. This paper explores factors which are engaged in building initial consumer trust in online shopping when a consumer wants to buy from a website for the first time. For developing the model and determining factors, data collection is conducted using questionnaire distribution for 325 respondents. After that, the validity of the proposed model is confirmed with Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). In EFA, variables are categorized into 6 factors and then using CFA which is based on Structural Equations Model (SEM) the relationship between variables and factors is investigated. The results of research show that factors of Product Characteristics, Security & Reputation, Website Design Quality, Support, Purchase Characteristic, and Advertising are effective factors for building initial trust. In this study the statistical population is students of Damghan University.

Keywords


Bradach, J. L.&Eccles, R. G. (1989). Price, authority and trust: From ideal types to plural forms. Annual Review of Sociology, 15, 97–118.
Chaffey, D. (2002).E-Business and E-commerce Management,London, Prentice-Hall.
Chai, S. & Kim, M. (2010). What makes bloggers share knowledge? An investigation on the role of trust.International Journal of Information Management, 30(5), 408–415.
Chang, M. K., Cheung, W. & Tang M. (2013). Building trust online: Interactions among trust building mechanisms. Information & Management, 50, 439–445.
Corbitt, B. J., Thanasankit, T. & Yi, H. (2003). Trust and e-commerce: a study of consumer perceptions.Electronic Commerce Research and Applications, 2, 203-215.
Corritore, C. L., Kracher, B.&Wiedenbeck, S. (2003). On-line trust: concepts, evolving themes, a model. International Journal of Human-Computer Studies, 58, 105–125.
Dehdashti Shahrokh, Z., Oveisi, N.& Timasi, S. M. (2013). The Effects of Customer Loyalty on Repurchase Intention in B2CE-commerce- A Customer Loyalty Perspective, Journal of Basic and Applied Scientific Research,3(6), 636-644.
Etezadi-Amoli, J. &Farhoomand, A. F. (1996).A structural model of end user computing satisfaction and user performance.Information & Management, 30(2), 65–73.
Fathian, M.&Molanapor, R. (2011).Electronic commerce. Tehran. Ati negar. (In Persian)
Flavian, C., Guinaliu, M. &Gurrea, R. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty. Information & Management, 43(1), 1–14.
Ganguly, B., Dash, S.B., Cyr, D. & Head, M. (2010). The effects of website design on purchase intention in online shopping: the mediating role of trust and the moderating role of culture. International Journal of Electronic Business, 8(4/5), 302-330.
Ganesan, S. (1994).Determinants of long-term orientation in buyer–seller relationships.Journal of Marketing, 58(2), 1–19.
Gaur, A. S., Gaur, S. S. (2006).Statistical Methods for Practice and Research. London, SAGE Publications Inc.
Gefen, D. (2002). Reflections on the Dimensions of Trust and Trustworthiness among Online Consumers, ACM Special Interest Group on Management Information Systems, 33(3), 38-53.
Ghalandari, K. (2012). The Effect of E-Service Quality on E-Trust and E-Satisfaction as Key Factors Influencing Creation of E-Loyalty in E-Business Context: The Moderating Role of Situational Factors. Journal of Basic and Applied Scientific Research, 2(12),12847-12855.
HabibporGetabi, K.&SafariShali, R. (2006). Comprehensive Manual for Using SPSS in Survey Researches, Tehran, Motefakeran-Loyeh. (In Persian)
Hair, J.F.J., Anderson, R.E., Tatham, R.L. & Black, W.C. (1998). Multivariate Data Analysis with Readings. NewJerwey,Prentice Hall.
Hassanein, Kh. & Head M. (2004). The Influence of Product Type on Online Trust, 17thBled Electronic Commerce Conference eGlobal, Bled, Slovenia.
Hemphill, T. A. (2002). Electronic commerce and consumer privacy: Establishing online trust in the US digital economy.Business and Society Review,107(2), 221–239.
Hong, l. B. & Cho, H. (2011). The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-marketplaces: Intermediary trust vs. seller trust. International Journal of Information Management, 31(5), 469– 479.
Hasangholipor, T., Amiri,M., Fahim, F.& Ghaderiabed, A. (2013). The effect of customer characteristics on their willingness to accept internet shopping.Information Technology Management, 5(4), 67-84.(In Persian)
Jafarzadeh, A. and Aghabarar, F. (2013). Trust in E-commerce.  Academic Journal of Research in Business and  Accounting, 1(5), 46-52.
Jai, L., Cegielski, C.& Zhang, Q.(2014). The Effect of Trust on Customers’ Online Repurchase Intention in Consumer-to-Consumer Electronic Commerce.Journal of Organizational and End User Computing, 26(3), 65-86.
Jarvenpaa, S. L., Tractinsky, N. &Vitale, M. (2000). Consumer trust in an Internet store.Information Technology and Management,1(1).45–71.
Khodad Hoseini, S.H, Shirkhodaei, M. &Kordnaeij, A. (2010).Factors influence customer trust in e-commerce (B2C Model).Modarres Human Sciences, 13(2), 93-118.(In Persian)
Kim, D. J., Song, Y. I., Braynov, S.B. &Rao, H.R. (2005). A multidimensional trust formation model in B-to-C e-commerce: a conceptual framework and content analyses of academia/practitioner perspectives. Decision support systems, 40, 143– 165.
Kim, J., Jin, B. & Swinney, J. L.(2009). The role of retail quality, e-satisfaction and e-trust in online loyalty development process, Journal of Retailing and Consumer Services,16,239–247.
Liao, C., Palvia, P. &Lin, H. (2006). The roles of habit and web site quality in e-commerce.International Journal of Information Management, 26, 469-483.
Lee, M.K.O &Turban, E. (2001). A trust model for consumer internet shopping.International Journal of Electronic Commerce, 6(1), 75–91.
Mayer, R. C., Davis, J. H.&Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734.
McKnight, D.H., Choudhury, V. &Kacmar, C. (2002). The impact of initial consumer trust on intentions to transact with a web site: a trust building model.Journal of Strategic Information Systems,11, 297–323.
McKnight, D.H. &Chervany, N.L. (2002). What trust means in e-commerce customer relationships: An interdisciplinary conceptual typology. International Journal of Electronic Commerce, 6(2), 35-59.
Miremadi, A., Hassanian-Esfahani, R.&Aminilari, M. (2013).A New Trust Model for B2C E-Commerce Based on 3D User Interfaces.7th International Conference on e-commerce in Developing Countries with focus on E-security,Kish Island, Iran.
Mohammadi, A. &Amiri, Y. (2014). Identify and explain the factors influence the acceptance of IT innovations in government organizations with structural equation modelling approach.Information Technology Management, 5(4), 195-218.(In Persian)
Nazari, M., Hajiheidari, N. &Nasri, M. (2012). The effect of B2C shopping website attributes on customer internet purchase intention using conjoint analysis technique. Business Management, 4 (4), 127-146.(In Persian)
Nunnally, J.C.(1978). Psychometric Theory. New York. McGraw-Hill.
Olfat, L., Khosravani, F.&Jalali, R. (2011).Identification of factors influence internet shopping and prioritize them using Fuzzy ANP.Business Management,3(7),19-36.(In Persian)
Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model.International Journal of Electronic Commerce, 7(3), 101–134.
Rahimnia, F., Amini, M.&Nabizadeh, T. (2011), Provide a framework for the process of building e-trust in and e-commerce development. 6th national conference on e-commerce and economy, Tehran, Iran.(In Persian)
Safa, N.S.&Ismail, M.A. (2013).A customer loyalty formation model in electronic commerce.Economic Modelling, 35, 559-564.
Schurr, P. H., &Ozanne, J. L. (1985). Influences on exchange processes: Buyers’ preconceptions of a seller’s trustworthiness and bargaining toughness. Journal of Consumer Research, 11(4), 939–953.
Schwab, D.P. (1980). Construct validity in Organizational behavior. Research in Organizational Behavior, 2, 3–43.
Shankar, V., Urban, G. L. &Sultan, F. (2002). Online trust: A stakeholder perspective, concepts, implications, and future direction, Journal of Strategic Information Systems, 11, 325–344.
Suh, B.&Han, I. (2003).The impact of customer trust and perception of security control on the acceptance of electronic commerce.International Journal of Electronic Commerce, 7(3), 135–161.
Susanto, H. T. A. & Chang, Y. (2014). Determinants of  Initial Trust Formation in Electronic Commerce Acceptance in Indonesia, IEEE Conference on Systems, Process and Control (ICSPC 2014), Kuala Lumpur, Malaysia.
Svantesson, D. & Clarke, R. (2010).A best practice model for e-consumer protection.Computer law and security review, 26(1), 31-37.
Thaw, Y. Y., Mahmood, A.K &Dominic, D. D. (2009).A Study on the Factors That Influence the Consumers’ Trust on E-commerce Adoption.International Journal of Computer Science and Information Security, 4(1&2), 153-159.
Yoon, H. S&Occena, L. G. (2015). Influencing factors of trust in consumer-to-consumer electronic commerce with gender and age. International Journal of Information Management,35(3),352–363.
Yu, P. L., Balaji, M.S. & Khong, K. W.(2015). Building trust in internet banking: a trustworthiness perspective. Industrial Management & Data Systems, 115(2), 235 – 252.
Wang, R., Wang, S., Wu, T. Z &Zhang, X. (2012). Customers E-trust for Online Retailers: A Case in China, 8thInternational Conference on Computational Intelligence and Security, Guangzhou, China.
Wang, Y. D. &Emurian H. H. (2005). An overview of online trust: Concepts, elements, and implications. Computer in Human Behavior, 21, 105-125.