A model of customers' initial trust in unknown online retailers: an empirical study

  • Authors:
  • Euijin Kim;Suresh Tadisina

  • Affiliations:
  • Morehead State University, Morehead, KY 40351, USA.;Southern Illinois University, Carbondale, IL 62901, USA

  • Venue:
  • International Journal of Business Information Systems
  • Year:
  • 2010

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Abstract

Trust is considered one of the key success factors of e-commerce, and winning customers' trust initially is especially important for web-based companies (e-businesses), as initial trust could be a starting point from which more sustainable relationships could possibly develop. In answering the question of how e-business customers develop initial trust especially in unknown online retailers, we propose a model with a two-factor initial trust model (competence and goodwill) and three different types of predictors: two trustee's characteristic-based factors (company profile and website quality), one institution-based factor (third-party support) and one trustor's personality-based factor (propensity to trust). This model was empirically tested and we found some evidence that website quality and third-party support had significant effect on initial trust. Company profile and propensity to trust didn't have any direct effects on initial trust, but a type of propensity to trust showed some moderating effects.