The Impact of Multi-dimensional Trust for Customer Satisfaction

  • Choi, Jae-Won (Techno-Management Research Institute, Korea Advanced Institute of Science and Technology KAIST Business School) ;
  • Sohn, Chang-Soo (Department of Business Computer Information Systems, G.R.Herberger College of Business, Saint Cloud State University) ;
  • Lee, Hong-Joo (Department of Business Administration, The Catholic University of Korea)
  • Received : 2008.03.15
  • Accepted : 2009.12.20
  • Published : 2010.09.30

Abstract

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.

References

  1. Anderson, E. W., C. Fornell, and D. R. Lehmann, "Customer Satisfaction, Market Share, and Profitability: Findings From Sweden," Journal of Marketing 58, 3 (Jul., 1994), 14, 53.
  2. Anderson, J. C. and D. W. Gerbing, "Structural Equation Modeling in Practice: A review and Recommended two‐step approach," Psychological Bulletin 103, 3 (1988), 411‐423. https://doi.org/10.1037/0033-2909.103.3.411
  3. Anderson, J. C. and J. A. Narus, "A Model of Distributorʹs Perspective of Distributor‐ Manufacturer Working Relationships," Journal of Marketing 54 (January, 1990), 42-58.
  4. Ajzen, L. and M. Fishbein, "Understanding attitudes and Predicting Social Behavior," Prentice-Hall, Inc., 1980.
  5. Ba, S. and P. A. Pavlou, "Evidence of the Effect of Trust Building Technology in Electronic Markets: Price Premiums and Buyer Behavior," MIS Quarterly 26, 3 (Sep., 2002), 243-268. https://doi.org/10.2307/4132332
  6. Brandach, J. L. and R. G. Eccles, "Markets versus Hierarchies: From Ideal Types to Plural Froms," Annual Review of Society 15 (1989), 97‐118. https://doi.org/10.1146/annurev.so.15.080189.000525
  7. Brashear, T. G., J. S. Boles, D. N. Bellenger, and C. M. Brooks, "An Empirical Test of Trust‐Building Processes and Outcomes in Sales Manager--Salesperson Relationships," Journal of the Academy of Marketing Science 31, 2 (Mar., 2003), 189‐200. https://doi.org/10.1177/0092070302250902
  8. Choi, J., C. Sohn, and H. J. Lee, "The Role of Cue‐based Trust for Trust Building in e‐Commerce," The Journal of Society for e‐Business Studies 14, 2 (May, 2009), 1‐ 22.
  9. Corbitt, B. J., T. Thanasankit, and H. Yi, "Trust and e‐commerce: a study of consumer perceptions," Electronic commerce Research and Applications, (2003), 203‐ 215.
  10. Doney, R. M. and J. P. Cannon, "An Examination of the Nature of Trust in Buyer‐Seller Relationships," Journal of Marketing, 61(April, 1997), 35‐51. https://doi.org/10.2307/1251829
  11. Donthu, N. and A. Garcia, "The Online shopper," Journal of Advertising Research (May‐June, 1999), 52‐58.
  12. Foster, B. D. and J. W. Cadogan, "Relationship Selling and Customer Loyalty: An Empirical investigation," Marketing Intelligence and Planning 18, 4 (2000), 185‐199.
  13. Garnesan, S., "Determinants of Long‐Term Orientation in Buyer‐Seller Relationships," Journal of Marketing 58 (April, 1994), 1‐19.
  14. Garbarino, E. and M. S. Johnson, "The Different Role of Satisfaction, Trust, and Commitment in Customer Relationships," Journal of Marketing 63 (April, 1999), 70‐87. https://doi.org/10.2307/1251946
  15. Gefen, D., "E‐Commerce: the role of familiarity and trust," Omega 28 (2000), 725‐737. https://doi.org/10.1016/S0305-0483(00)00021-9
  16. Gefen, D. and D. W. Straub, "Managing User Trust in B2C e‐services," e‐Service Journal (2003), 7‐24.
  17. Gefen, D., E. Carahanna, and D. W. Straub, "Trust and TAM in Online Shopping: An Integrited Model," MIS Quarterly 27, 1 (March, 2003).
  18. Jarvenpaa, S. L., N. Tractinsky, and M. Vitale, "Consumer Trust in an Internet Store," Information Technology and Management (2000), 45‐71.
  19. Jarvenpaa, S. L., N. Tractinsky, and P. Todd, "Consumer Reactions to Electronic Shopping on the World Wide Web," International Journal of Electronic Commerce 1, 2 (1997), 59‐88.
  20. Kim, D., Y. Song, S. B. Braynov, and H. R. Rao, "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 (2005), 143‐165. https://doi.org/10.1016/j.dss.2004.01.006
  21. Kim, D., "Self‐Perception‐Based Versus Transference‐Based Trust Determinants in Computer‐Mediated Transactions: A Cross‐Cultural Comparison Study," Journal of Management Information Systems 24, 4 (2008), 13‐45. https://doi.org/10.2753/MIS0742-1222240401
  22. Kim, K. and B. Prabhakar, "Initial Trust as a Determinant of the Adoption of Internet Banking," ICIS Proceedings, Brisbane, Australia, 2000.
  23. Kumar, N., "The Power of Trust in Manufacturer‐Retailer Relationships," Harvard Business Review, (November‐December, 1996), 92‐106.
  24. Kumar, N., L. K. Scheer, and E. M. Jan‐Benedict, "The Effects of Perceived Interdependence on Dealer Attitudes," Journal of Marketing Research 32 (August, 1995), 348‐356. https://doi.org/10.2307/3151986
  25. Mayer, R. C., J. H. Davis, and F. D. Shoorman, "An Integration Model of Organizational Trust," The Academy of Management Review 20, 3 (July, 1994).
  26. McKnight, D. H. and N. L. Chervany, "What Trust Menas in E‐Commerce Customer Relationships: An Interdisciplinary Conceptual Typology," International Journal of Electronic Commerce 6, 2 (Winter, 2002), 35‐59.
  27. McKnight, D. H., L. L. Cummings, and N. L. Chervany, "Initial Trust Formation In New Organizational Relationship," Academy of Management Review 23, 3 (1998), 473‐490.
  28. McKnight, D. H., V. Choudhury, and C. Kacmar, "Developing Validating Trust Measures for e‐Commerce: An Integrative Typology," Information System Research 13, 3 (September, 2002), 334‐359. https://doi.org/10.1287/isre.13.3.334.81
  29. Moorman, C., G. Zaltman, and R. Deshpande, "Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations," Journal of Marketing 29 (August, 1992), 314‐328. https://doi.org/10.2307/3172742
  30. Morgan, R. M. and S. D. Hunt, "The Commitment‐Trust Theory of Relationship Marketing," Journal of Marketing 58 (July, 1994), 20‐38.
  31. Oliver, R. L., "Cognitive, Affective, and Attribute Bases of the Satisfaction Response," Journal of Consumer Research 20 (1993), 418‐430. https://doi.org/10.1086/209358
  32. Ring, P. S. and A. Van de Ven, "Structuring Cooperative Relationships between Organizations," Strategic Management Journal 13 (1992), 483‐498. https://doi.org/10.1002/smj.4250130702
  33. Ring, P. S. and A. Van de Ven, "Developmental Process of Cooperative Interorganizational Relationships," Academic of Management Review 19 (1994), 90‐118.
  34. Rousseau, S. B., S. B. Sitkin, S. B. Burt, and C. Carnerer, "Not So Different After All: A Cross‐Discipline View of Trust," Academy of Management Review 23, 3 (1998), 393‐404. https://doi.org/10.5465/AMR.1998.926617
  35. Schneitherman, B. "Designing Trust into On Experience," Communications of the ACM 43 (2000).
  36. Singh, J. and D. Sirdeshmukh, "Agency and Trust Mechanisms in Consumer Satisfaction and Loyalty Judgments," Journal of the Academy of Marketing Science 28, 1 (2000), 150‐167. https://doi.org/10.1177/0092070300281014
  37. Topscott, D., D. Ticoll, and A. Lowy, "Digital Capital," New York, NY: Mc Graw‐Hill, 2000.
  38. Wang, S., S. E. Beatty, and W. Foxx, "Signaling the Trustworthiness of Small Online Retailers," Journal of Interactive Marketing 18, 1 (2004).
  39. Wheaton B., M. Muthen, D. Alwin, and G. Summers, "Assessing Reliability and Stability in Panel Analysis," Sociological Methodology, Jossey‐Bass, San Francisco, (1977), 84‐136.
  40. Zucker, W., "Production of trust: Institutional sources of economic structures (1840-1920)," Research in Organizational Behavior 8 (1986), 53‐111.
  41. Jarvenpaa, S. L. and N. Tractinsky, "Consumer trust in an Internet store: A Cross‐cultural validation," Journal of Computer Mediated Communication 5, 2 (1999), 1‐ 35.
  42. Dick, A. S. and K. Basu, "Customer loyalty: Toward an Integrated Conceptual Framwork," Journal of the Academy of Marketing Science 22, 2 (1994), 99‐113. https://doi.org/10.1177/0092070394222001
  43. Gefen, D. and D. W. Straub, "Consumer Trust in B2C e‐commerce and the importance of social presence: experiments in e‐Products and e‐Services," Omega 32 (2004), 407‐424. https://doi.org/10.1016/j.omega.2004.01.006