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Designing Reputation and Trust Management Systems

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  • Roman Beck

    (Johann Wolfgang Goethe University, Germany)

Abstract

This article analyzes the handling of customer complaints after shipping ordered goods by applying automated reputation and trust accounts as decision support. Customer complaints are cost intensive and difficult to standardize. A game theory based analysis of the process yields insights into unfavorable interactions between both business partners. Trust and reputation mechanisms have been found useful in addressing these types of interactions. A reputation and trust management system (RTMS) is proposed based on design theory guidelines as an IS artifact to prevent customers from issuing false complaints. A generic simulation setting for analysis of the mechanism is presented to evaluate the applicability of the RTMS. The findings suggest that the RTMS performs best in market environments where transaction frequency is high, individual complaint-handling costs are high compared to product revenues, and the market has a high fraction of potentially cheating customers.

Suggested Citation

  • Roman Beck, 2008. "Designing Reputation and Trust Management Systems," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 6(4), pages 8-29, October.
    • Handle: RePEc:igg:jeco00:v:6:y:2008:i:4:p:8-29
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    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/jeco.2008100102
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    Cited by:

    1. Pezderka, Noemi & Sinkovics, Rudolf R., 2011. "A conceptualization of e-risk perceptions and implications for small firm active online internationalization," International Business Review, Elsevier, vol. 20(4), pages 409-422, August.

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