Evaluating transaction trust and risk levels in peer-to-peer e-commerce environments

Trust evaluation is critical to peer-to-peer (P2P) e-commerce environments. Traditionally the evaluation process is based on other peers' recommendations neglecting transaction amounts. This may lead to the bias in transaction trust evaluation and risk the new transaction. The weakness may be exploited by dishonest sellers to obtain good transaction reputation by selling cheap goods and then cheat buyers by selling expensive goods. In this paper we present a novel model for transaction trust evaluation, which differentiates transaction amounts when computing trust values. The trust evaluation is dependent on transaction history, the amounts of old transactions, and the amount of the new transaction. Therefore, the trust value can be taken as the risk indication of the forthcoming transaction and is valuable for the decision-making of buyers.     

Enabling trust formation within agent-mediated virtual environments

In e-commerce, the role of trust becomes vital for establishing and maintaining customer relationships. Drawing from established theoretical work on trust and relationship marketing, this paper synthesises a series of trust constructs, determinant variables and trust building processes, and proposes a framework for the formation of trust in customer-business relationships. The framework is conceptualised in the context of an electronic servicescape, where trust is formed through iterative interactions with promises being made, enabled and fulfilled. Based on this framework, the paper illustrates how the application of agent and virtual reality technologies can provide the environment and facilitate the expressiveness demanded by such a servicescape.     

The causal relationship between risk and trust in the online marketplace: A bidirectional perspective

Trust and perceived risk have been identified as the two primary factors affecting engagement in online transactions. However, earlier studies have conceptualized the directionality of the causal link between these two factors differently. Some researchers have conceptualized trust as an antecedent to risk, while others see it as a consequence. To resolve this issue, we develop a bidirectional model in which trust and perceived risk mutually influence each other. We then test the ability of the bidirectional model to provide a more realistic explanation of buyers' decision-making than previously offered unidirectional models. In a sample of 747 experienced buyers in the online marketplace, we find a reciprocal and nearly equal effect of trust and perceived risk. The results of the study reveal that the direct effect of trust on transaction intention is highly significant, whereas that of perceived risk is insignificant. Based on these empirical findings, we discuss the implications of our research, including the appropriateness of our research question and several paradoxes identified in prior studies.     

Understanding the effects of trust and risk on individual behavior toward social media platforms: A meta-analysis of the empirical evidence

Trust and risk have been theorized and empirically approved as the most influential factors affecting individual behavior toward social media platforms (SMPs). However, the evidence is scattered and the understanding of the effects is ambiguous. To address this problem, a rigorous and quantitative meta-analysis was conducted to investigate the empirical evidence of 43 studies in information systems research between 2006 and 2014. The findings suggested that trust and risk both had significant effects on individual behavior toward SMPs but that trust had a stronger effect. Moderating effects of trust objects (community members vs. platforms) and platform types (virtual communities vs. social networking sites) were found. Surprisingly, culture was found to exert no moderating effect. This paper contributes more generalized knowledge to social media research literature to the theory with regard to the influence of trust and risk on individual behavior toward SMPs. The knowledge serves as the foundation for future research efforts in social media. Implications for practice are discussed.     

Investigating online information disclosure: Effects of information relevance,trust and risk

Organizations rely on customer information to design new products and offer new services. However, people should not share their personal information online. We produced and tested a model of information disclosure. While prior work focused on the effects of trust and its relationship to risk in determining intent to disclose information, we assumed that information relevance was a critical antecedent to disclosure and that both relevance and trust could alleviate perceptions of risk associated with disclosure, thereby increasing peoples’ intentions to disclose information. We tested our model using 264 subjects in an experimental setting. The results showed the importance of relevance on intentions to disclose information – allowing us to draw implications for practice about voluntary information disclosure in online settings.     

Gen Y customer loyalty in online shopping: An integrated model of trust,user experience and branding

Generational theory posits that generational cohorts develop similar attitudes and beliefs. Gen Y, Millennials, will become the largest customer segment for hotels worldwide. This group likes to travel and prefers to spend money on experiences rather than materialistic items. Their responses to online marketing is expected to be different as they process website information five times faster than older generations and are the most emotional and least loyal customers compared to all other generations. The aim of this research is to develop and test a comprehensive model that explains how Gen Y develops loyalty to a hotel booking website. To test the research model, an online survey was distributed to a systematic random sample of 2500 Gen Yers. Findings highlight that trust is the most important antecedent of e-loyalty in online shopping for Gen Y customers. Brand equity is also a key precursor of e-loyalty. Finally, a positive online experience (flow), is also a significant precursor of e-loyalty for this cohort.     

Modelling and testing consumer trust dimensions in e-commerce

Prior research has found trust to play a significant role in shaping purchase intentions of a consumer. However there has been limited research where consumer trust dimensions have been empirically defined and tested. In this paper we empirically test a path model such that Internet vendors would have adequate solutions to increase trust. The path model presented in this paper measures the three main dimensions of trust, i.e. competence, integrity, and benevolence. And assesses the influence of overall trust of consumers. The paper also analyses how various sources of trust, i.e. consumer characteristics, firm characteristic, website infrastructure and interactions with consumers, influence dimensions of trust. The model is tested using 365 valid responses. Findings suggest that consumers with high overall trust demonstrate a higher intention to purchase online.     

Building online trust through privacy practices

This study applies Mayer et al. [24] trust model to an Internet context. A model is presented linking privacy policy, through trustworthiness, to online trust, and then to customers’ loyalty and their willingness to provide truthful information. The model is tested using a sample of 269 responses. The findings suggest that consumers’ trust in a company is closely linked with the perception of the company’s respect for customer privacy. Trust in turn is linked to increased customer loyalty that can be manifested through increased purchases, openness to trying new products, and willingness to participate in programs that use additional personal information.     

Perceived usefulness,personal experiences,risk perception and trust as determinants of adoption of e-government services in The Netherlands

Recently Dutch government, as well as many other governments around the world, has digitized a major portion of its public services. With this development electronic services finally arrive at the transaction level. The risks of electronic services on the transactional level are more profound than at the informational level. The public needs to trust the integrity and ‘information management capacities’ of the government or other involved organizations, as well as trust the infrastructure and those managing the infrastructure. In this process, the individual citizen will have to decide to adopt the new electronic government services by weighing its benefits and risks. In this paper, we present a study which aims to identify the role of risk perception and trust in the intention to adopt government e-services.     

A familiarity-based trust model for effective selection of sellers in multiagent e-commerce systems

In electronic marketplaces, trust is modeled, for instance, in order to allow buying agents to make effective selection of selling agents. Familiarity is often considered to be an important factor in determining the level of trust. In previous research, familiarity between two agents has been simply assumed to be the similarity between them. We propose an improved familiarity measurement based on the exploration of factors that affect a human’s feelings of familiarity. We also carry out experiments to show that the trust model with our improved familiarity measurement is more effective and more stable.     

在线信誉系统中的信任模型构建研究

针对现有在线信誉系统中信任模型的缺陷,基于在线拍卖的特点,并结合已有信任研究成果,构建了基于多影响因素的信任模型．本模型适用于在线拍卖环境下对用户信誉状况的全面、准确的评估．仿真实验表明,与现有信任模型相比,本模型的信任度计算精确度较高,具有较好的可行性．     

在线用户打分行为长记忆效应与信任关系研究

对在线打分行为的动态研究能够帮助深入理解社交网络用户集群行为和信任关系的演化机制,当前许多在线系统用户能够通过对物品进行打分传达自己的观点。通过去趋势波动分析法研究了用户打分行为在信任关系建立前后的长记忆效应,并通过随机化打分时间和信任时间建立零模型,最后进行用户打分行为异质性分析。采用Epinions数据集进行实证研究,结果表明用户打分的长记忆效应在信任关系建立前出现下降趋势（8.06%）,并于之后逐步回升（8.43%）,而在两个零模型中赫斯特指数分别稳定在0.5和0.6左右,且用户长记忆效应变动与用户度呈正相关,Pearson相关系数分别为0.9358和0.9278。该工作有助于深入理解用户集群行为和信任关系的动态演化机制。     

Internet social network communities: Risk taking,trust, and privacy concerns

Individuals communicate and form relationships through Internet social networking websites such as Facebook and MySpace. We study risk taking, trust, and privacy concerns with regard to social networking websites among 205 college students using both reliable scales and behavior. Individuals with profiles on social networking websites have greater risk taking attitudes than those who do not; greater risk taking attitudes exist among men than women. Facebook has a greater sense of trust than MySpace. General privacy concerns and identity information disclosure concerns are of greater concern to women than men. Greater percentages of men than women display their phone numbers and home addresses on social networking websites. Social networking websites should inform potential users that risk taking and privacy concerns are potentially relevant and important concerns before individuals sign-up and create social networking websites.     

Scores vs. stars: A regression discontinuity study of online consumer reviews

With the rising popularity of consumer reviews, the design of the review system becomes increasingly crucial for e-commerce platforms and online retailers in their business decision-makings. Though the relationship between consumer reviews and sales has been extensively studied, only few studies have been conducted on the effects of different review designs. In this paper, we collect detailed review data from Meituan.com, a popular Chinese shopping website, to examine the effects of numerical presentation of consumer reviews (detailed to one decimal place) and graphical presentation of consumer reviews (in half-stars) on sales. By using a regression discontinuity design, we find that while consumer review scores may affect sales positively, the star presentation can create negative, rather than positive, jumps at cutoffs. Consumers restrict their attention to a star category; therefore, the “best” sellers in a lower star category are better off than the “worst” sellers in a higher star category. The incentive for review manipulation is strongly reduced, which in the long run will create trust and confidence for the review system as well as the sellers. For those sellers that are just below the cutoffs, simply crossing over the cutoffs would not lead to higher sales. Instead, they will have to substantially improve their service quality to attract consumers.     

Examining the impact of privacy, trust and risk perceptions beyond monetary transactions: An integrated model

Much interest in privacy and trust studies is about shopping, but privacy research in other forms of online activities is beginning to emerge. This study examined the antecedents of privacy, trust and risk as well as their joint effect on two similar but fundamentally different activities: online transactions and retrieval of privileged information. Both activities involve the delivery of private user information, but the latter gives some leeway for users to control (or even falsify) their true identity. User shopping experience in the present study moderated the relationships and strengths of constructs. The effect of Internet literacy, social awareness and disposition to trust on privacy concern and trust was weaker for experienced shoppers. Privacy concern, trust and risk assessment played a lesser role on the two activity variables for those who were more experienced. Perceived privacy risk stood out as a strong antecedent for respondents in both experience groups, but the effect of Internet literacy, social awareness and disposition on trust was statistically insignificant for the same group. Further practical and managerial implications are provided.     

The dynamics of trust in B2C e-commerce: a research model and agenda

Trust is a key factor that determines the success of Business to Consumer (B2C) e-commerce transactions. Research has identified several critical factors that influence trust. These have been incorporated into the design of e-commerce web portals; however a vast majority of potential users are still wary of online business transactions. This points to the need for the development of more sophisticated and comprehensive models that can provide additional insights into the true role played by trust in the adoption of e-commerce portals. Here we do so by focusing on trust as it pertains to B2C e-commerce transactions. Pertinent issues addressed are: (1) Is trust the critical factor that makes all the difference between users accepting or rejecting a B2C portal? (2) Are there factors that could play a more critical role in user acceptance/rejection of such portals? (3) If so, what is the relevance of trust relative to these factors? The research model and agenda introduced here enable researchers to view trust in its proper perspective as part of the bigger picture of technology acceptance.     

Explaining physicians’ acceptance of EHCR systems: An extension of TAM with trust and risk factors

This paper explains physicians’ acceptance, in terms of usage intentions, of a central component of health information technology: electronic health care records (EHCR systems). For this purpose, the original version of the Technology Acceptance Model (TAM), which included perceived usefulness, perceived ease of use, attitude towards usage, and usage intentions, is extended with trust and risk-related factors such as physicians’ perceptions of institutional trust, perceived risk, and information integrity. The results stress the special importance of attitudinal factors (attitude towards usage and perceived institutional trust) and cognitive instrumental processes (mainly, usefulness perceptions) in determining physicians’ intention to use EHCR systems. Perceptions of institutional trust exerted strong direct effects on physicians’ perceived usefulness, perceived ease of use, and attitude towards the use of EHCR systems. In addition, trust fully mediated the influences of perceived risk and information integrity perceptions on physicians’ acceptance of EHCR systems.     

The effect of online privacy policy on consumer privacy concern and trust

This study aims to investigate trust and privacy concerns related to the willingness to provide personal information online under the influence of cross-cultural effects. This study investigated the relationships among the content of online privacy statements, consumer trust, privacy concerns, and the moderating effect of different cultural backgrounds of the respondents. In specific, this study developed a proposed model based on Privacy–Trust–Behavioral Intention model. Further, a total of 500 participants participated in the survey, including 250 from Russia and 250 from Taiwan. The findings indicate a significant relationship between the content of privacy policies and privacy concern/trust; willingness to provide personal information and privacy concern/trust; privacy concern and trust. The cross-cultural effect on the relationships between the content of privacy policies and privacy concern/trust was also found significant.     

Assessment of subjective influence and trust with an online social network game

The deduction of influence and trust between two individuals only from objective data in online social networks (OSNs) is a rather vague approach. Subjective assessments via surveys produce better results, but are harder to conduct considering the vast amount of friendships of OSN users. This work presents a framework for personalized surveys on relationships in OSNs, which follows a gamification approach. A Facebook game was developed, which was used to subjectively assess social influence and interpersonal trust based on models from psychology. The results show that it is possible to obtain subjective opinions and (limited) objective data about relationships with an OSN game. Also an implicit assessment of influence and trust with subcategory questions is feasible in this case.     

Empirical research in on-line trust: a review and critical assessment

Lack of trust is one of the most frequently cited reasons for consumers not purchasing from Internet vendors. During the last four years a number of empirical studies have investigated the role of trust in the specific context of e-commerce, focusing on different aspects of this multi-dimensional construct. However, empirical research in this area is beset by conflicting conceptualizations of the trust construct, inadequate understanding of the relationships between trust, its antecedents and consequents, and the frequent use of trust scales that are neither theoretically derived nor rigorously validated. The major objective of this paper is to provide an integrative review of the empirical literature on trust in e-commerce in order to allow cumulative analysis of results. The interpretation and comparison of different empirical studies on on-line trust first requires conceptual clarification. A set of trust constructs is proposed that reflects both institutional phenomena (system trust) and personal and interpersonal forms of trust (dispositional trust, trusting beliefs, trusting intentions and trust-related behaviours), thus facilitating a multi-level and multi-dimensional analysis of research problems related to trust in e-commerce.