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Determinants and Role of Trust in E-Business: A Large Scale Empirical Study

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  • Sultan, Fareena
  • Urban, Glen
  • Shankar, Venkatesh
  • Bart, Iakov

Abstract

This research investigates the determinants and role of consumer trust in e-business. It examines consumer perceptions of trust in a Web site and addresses the following key research questions: What factors influence consumer trust in a Web site and what specific Web site trust cues are associated with these factors? How does trust affect consumer behavioral intent on a Web site? To address these questions, we develop a conceptual model that links consumer perceptions of Web site characteristics, consumer characteristics and demographics to perceptions of trust in a Web site, and trust to behavioral intent related to a Web site. We also examine whether trust mediates the relationship between Web site and consumer characteristics and behavioral intent related to the Web site. We test our hypotheses in a large-scale empirical study that estimates this model from 6831 consumers across 25 Web sites and eight industry categories. We validate the model using a holdout sample. The results show that Web site, consumer, category and demographic variables can explain 76% of the variance in trust. Web site characteristics such as privacy and security, navigation, presentation, brand, and advice account for as much as 98% of this explained variance in Web site trust. Surprisingly, over 80% of the explained variance in Web trust is due to factors other than privacy and security-mainly navigation, brand, advice, absence of errors, and presentation. We also find that trust mediates the relationships between Web site and consumer characteristics and behavioral intent related to Web sites. The results offer important implications for Web site strategies that include the manipulation of factors influencing Web site trust to favorably impact consumer behavior at the Web site

Suggested Citation

  • Sultan, Fareena & Urban, Glen & Shankar, Venkatesh & Bart, Iakov, 2003. "Determinants and Role of Trust in E-Business: A Large Scale Empirical Study," Working papers 4282-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    • Handle: RePEc:mit:sloanp:1826
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    File URL: http://hdl.handle.net/1721.1/1826
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    References listed on IDEAS

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    1. Thomas P. Novak & Donna L. Hoffman & Yiu-Fai Yung, 2000. "Measuring the Customer Experience in Online Environments: A Structural Modeling Approach," Marketing Science, INFORMS, vol. 19(1), pages 22-42, May.
    2. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
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    4. Hwang, Peter & Burgers, Willem P., 1997. "Properties of Trust: An Analytical View," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(1), pages 67-73, January.
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    Cited by:

    1. Mohammad Al-Nasser & Rushami Zien Yusoff & Rabiul Islam & Abdullah ALNasser, 2013. "Cultural Differences Identification and its Effect on E-Service Quality Perception," American Journal of Economics and Business Administration, Science Publications, vol. 5(2), pages 74-83, December.
    2. Jayani Chamarika Athapaththu & D. Kulathunga, 2018. "Factors Affecting Online Purchase Intention: Effects of Technology and Social Commerce," International Business Research, Canadian Center of Science and Education, vol. 11(10), pages 111-128, October.
    3. Ahlert, Dieter & Heidebur, S. & Michaelis, Michael, 2007. "Kaufverhaltensrelevante Effekte des Konsumentenvertrauens im Internet: Eine vergleichende Analyse von Online-Händlern," Working Papers 48, University of Münster, Competence Center Internet Economy and Hybrid Systems, European Research Center for Information Systems (ERCIS).

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