The development of initial trust in an online company by new customers

  • Authors:
  • Marios Koufaris;William Hampton-Sosa

  • Affiliations:
  • Department of Computer Information Systems, Zicklin School of Business, Baruch College, CUNY, 55 Lexington Avenue, Box B11-220, New York, NY;Department of Computer Information Systems, Zicklin School of Business, Baruch College, CUNY, 55 Lexington Avenue, Box B11-220, New York, NY

  • Venue:
  • Information and Management
  • Year:
  • 2004

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Abstract

Lack of trust in online companies is a primary reason why many web users do not shop online. This study proposes a model to explain how new customers of a web-based company develop initial trust in the company after their first visit. The model is empirically tested using a questionnaire-based field study. The results indicate that perceived company reputation and willingness to customize products and services can significantly affect initial trust. Perceived web site usefulness, ease of use, and security control are also significant antecedents of initial trust. Finally, we found no support for the hypothesized effect of individual customer trust propensity on initial trust.