A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents

Decision Support Systems

Volumn 44, Issue 2, 2008, Pages 544-564

  Kim, Dan J ^a   Ferrin, Donald L ^b   Rao, H Raghav ^c  

^a UNIVERSITY OF HOUSTON CLEAR LAKE   (United States)

^b SINGAPORE MANAGEMENT UNIVERSITY   (Singapore)

^c UNIVERSITY AT BUFFALO   (United States)

Author keywords

Antecedents of trust; Consumer trust; Electronic commerce; Internet consumer behavior; Perceived risk; Privacy and security; The role of trust; Trusted third party seal

Indexed keywords

DATA PRIVACY; DECISION MAKING; PURCHASING; RISK ASSESSMENT; WEBSITES;

ANTECEDENTS OF TRUST; PERCEIVED RISK; PRIVACY AND SECURITY; STRUCTURAL EQUATION MODELING; THE ROLE OF TRUST;

ELECTRONIC COMMERCE;

EID: 36249020892     PISSN: 01679236     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.dss.2007.07.001     Document Type: Article

References (144)

1. Online Advertising To Reach $33 Billion Worldwide By 2004 (1999), Forrester Research Press. http://www.forrester.com/ER/Press/Release/0%2C1769%2C159%2CFF.html http://www.forrester.com/ER/Press/Release/0,1769,159,FF.html
2. Ahuja M., Gupta B., and Raman P. An empirical investigation of online consumer purchasing behavior. Communications of the ACM 46 12ve (2003) 145-151
3. Ajzen I., and Fishbein M. Understanding Attitude and Predicting Social Behavior (1980), Prentice-Hall, Inc., Englewood Cliffs, NJ
4. Antony S., Lin Z., and Xu B. Determinants of escrow service adoption in consumer-to-consumer online auction market: an experimental study. Decision Support Systems 42 3 (2006) 1889-1900
5. Arzen I. The theory of planned behavior. Organizational Behavior and Human Decision Processes 50 (1991) 179-211
6. Ba S., and Pavlou P.A. Evidence of the effect of trust building technology in electronic markets: price premiums and buyer behavior. MIS Quarterly 26 3 (2002) 243-268
7. Ba S., Whinston A.B., and Zhang H. Building trust in online auction markets through an economic incentive mechanism. Decision Support Systems 35 3 (2003) 273-286
8. Bagozzi R.P., and Fornell C. Theoretical concepts, measurement, and meaning. In: Fornell C. (Ed). in A Second Generation of Multivariate Analysis (1982), Praeger 5-23
9. Balasubramanian S., Konana P., and Menon N.M. Customer satisfaction in virtual environments: a study of online investing. Management Science 49 7 (2003) 871-889
10. Barney J.B., and Hansen M.H. Trustworthiness as a source of competitive advantage. Strategic Management Journal 15 (1994) 175-190
11. Beatty S.E., Mayer M., Coleman J.E., Reynolds K.E., and Lee J. Customer-sales associate retail relationships. Journal of Retailing 72 3 (1996) 223-247
12. Belanger F., Hiller J.S., and Smith W.J. Trustworthiness in electronic commerce: the role of privacy, security, and site attributes. Journal of Strategic Information Systems 11 (2002) 245-270
13. Benantar M. The Internet public key infrastructure. IBM Systems Journal 40 3 (2001) 648-665
14. Bhatnagar A., Misra S., and Rao H.R. On risk, convenience, and internet shopping behavior. Communications of the ACM 43 11 (2000) 98-114
15. Bhattacherjee A. Individual trust in online firms: scale development and initial test. Journal of Management Information Systems 19 1 (2002) 211-242
16. Bhimani A. Securing the commercial Internet. Communications of the ACM 39 6 (1996) 29-35
17. Bilkey W.J. A psychological approach to consumer behavior analysis. Journal of Marketing 18 (1953) 18-25
18. Bilkey W.J. Psychic tensions and purchasing behavior. Journal of Social Psychology 41 (1955) 247-257
19. Blau P. Exchange in Power and Social Life (1964), John Wiley, New York
20. Bollen K.A. Structural Equations with Latent Variables (1989), Wiley, New York, NY
21. Bollen K., and Lennox R. Conventional wisdom on measurement: a structural equation perspective. Psychological Bulletin 110 (1991) 305-314
22. Boot A., Greedbaum S., and Thakor A. Reputation and discretion in financial contracting. American Economic Review 83 5 (1993) 1165-1183
23. Brainov S., and Sandholm T. Contracting with Uncertain Level of Trust. Presented at E-COMMERCE, Denver, CO (1999) 15-21
24. Brynjolfsson E., and Smith M. Frictionless commerce? A comparison of Internet and conventional retailers. Management Science 46 4 (2000) 563-585
25. Burt R., and Knez M. Trust and third-party gossip. In: Kramer R.M., and T.R.T. (Eds). Trust in Organizations: Frontiers of Theory and Research (1996), Sage
26. Canzaroli A., Tan Y., and Thoen W. The Social and Institutional Context of Trust in Electronic Commerce. Presented at Autonomous Agents '99 Workshop "Deception, Fraud and Trust in Agent Societies" (1999) 65-76
27. Castelfranchi C., and Falcone R. The Dynamics of Trust: from Beliefs to Action. Presented at Autonomous Agents '99 Workshop on Deception, Fraud and Trust in Agent Societies, Seattle, WA (1999) 41-54
28. Castelfranchi C., and Tan Y.-H. Trust and Deception in Virtual Societies (2001), Kluwer Academic Publishers
29. Chellappa R.K., and Pavlou P.A. Consumter trust in electronic commerce transactions. Logistics Information Management 15 5/6 (2002) 358-368
30. L.-D. Chen, "Consumer Acceptance of Virtual Stores: A Theoretical model and Critical Success Factors for Virtual Stores," University of Memphis, Doctoral Dissertation, (2000).
31. Chen M., Han J., and Yu P.S. Data mining: an overview from a database perspective. IEEE Transactions on Knowledge and Data Engineering 8 6 (1996)
32. Chen C.C., Chen X.-P., and Meindl J.R. How can cooperation be fostered? The cultural effects of individualism-collectivism. Academy of Management Review 23 2 (1998) 285-304
33. Cheung C.M.K., and Lee M.K.O. Understanding consumer trust in Internet shopping: a multidisciplinary approach. Journal of the American Society for Information Science and Technology 57 4 (2006) 479-492
34. Chin W.W. Issues and opinion on structural equation modeling. MIS Quarterly 22 1 (1998) 7-16
35. Chin W.W. The Partial Least Squares approach to structural equation modeling. In: Marcoulides G.A. (Ed). Modern Methods for Business Research (1998), Lawrence Erlbaum Associates, Mahwah, NJ 295-336
36. Chin W.W., and Todd P.A. One the use, usefulness, and ease of use of structural equation modeling in MIS research: a note of caution. MIS Quarterly 19 2 (1995) 237-246
37. Chin W.W., Gopal A., and Salisbury W.D. Advancing the theory of adaptive structuration: the development of a scale to measure faithfulness of appropriation. Information Systems Research 8 4 (1997) 342-367
38. Cho Y., Im I., Fjermestad J., and Hiltz R. The effects of post-purchase evaluation factors on online vs. offline customer complaining behavior: implications for customer loyalty. Advances in Consumer Research 29 (2002)
39. Coleman J. Foundations of Social Theory (1990), Harvard University Press, Cambridge, Ma
40. Cranor L.F., Reagle J., and Ackerman M.S. Beyond Concern: Understanding Net Users' Attitudes about Online Privacy. AT&T Labs-Research Technical Report (1999)
41. Cummings L.L., and Bromiley P. The Organizational Trust Inventory (OTI): development and validation. In: Karamer R.M., and Tyler T.R. (Eds). Trust in Organizations: Frontiers of Theory and Research (1996), Sage, Thousand Oaks, CA 302-320
42. Czepiel J.A. Service encounters and service relationships: implications for research. Journal of Business Research 20 1 (1990) 13-21
43. Dasgupta P. Trust as a commodity. In: Gambetta D.G. (Ed). Trust: Making and Breaking Cooperative Relations (1990), Basil Blackwell, New York 49-72
44. David J.L. You've got surveys. American Demographics 22 11 (2000) 42-44
45. Davis F.D. Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly 13 3 (1989) 319-340
46. Deutsch M. The effect of motivational orientation upon trust and suspicion. Human Relations 13 (1960) 123-139
47. Dirks K.T., and Ferrin D.L. The role of trust in organizational settings. Organization Science 12 4 (2001) 450-467
48. Doerfel M.L., and Barnett G.A. A semantic network analysis of the International Communication Association. Human Communication Research 25 4 (1999) 389-603
49. Doll W.J., and Torkzadeh G. The measurement of end-user computing satisfaction. MIS Quarterly 12 2 (1988) 259-274
50. Doney P.M., and Cannon J.P. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing 61 2 (1997) 35-51
51. Fishbein M., and Ajzen I. Belief, Attitude, Intention, and Behavior: an Introduction to Theory and Research (1975), Addison-Wesley
52. Fornell C., and Larcker D. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (1981) 39-50
53. Forsythe S., Liu C., Shannon D., and Gardner L.C. Development of a scale to measure the perceived benefits and risks of online shopping. Journal of Interactive Marketing 20 2 (2006) 55-75
54. Fram E.H., and Grady D.B. Internet shoppers: is there a surfer gender gap?. Direct Marketing 59 9 (1997) 46-50
55. Friedman B. Trust online. Communications of the ACM 43 12 (2000) 34-40
56. Fukuyama F. Trust: The Social Virtues and the Creation of Prosperity (1995), Free Press, New York, NY
57. D.G. Gambetta, "Can We Trust Trust?," in Trust: Making and Breaking Cooperative Relations, Gambetta, Ed., electronic edition ed. Department of Sociology, University of Oxford, (1988), 213-237.
58. Gambetta D. Trust: Making and Breaking Cooperative Relations (1990), Basil Blackwell Inc., New York, NY
59. Ganesan S. Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing 58 (1994) 1-19
60. Gefen D. E-commerce: the role of familiarity and trust. The International Journal of Management Science 28 (2000) 725-737
61. Gefen D. E-commerce: the role of familiarity and trust. Omega: The International Journal of Management Science 28 6 (2000) 725-737
62. Gefen D. Reflections on the dimensions of trust and trustworthiness among online consumers. ACM SIGMIS Database 33 3 (2002) 38-53
63. Gefen D., Straub D.W., and Boudreau M.-C. Structural equation modeling and regression: guidelines for research practice. Communications of the AIS 4 (2000) 1-77
64. Gefen D., Karahanna E., and Straub D.W. Trust and TAM in online shopping: an integrated model. MIS Quarterly 27 1 (2003) 51-90
65. Goodwin N.R. Economic Meanings of Trust and Responsibility (1996), The University of Michigan Press, Ann Arbor, MI
66. Grabosky P. The nature of trust online. The Age (2001) 1-12
67. Gulati R. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal 38 1 (1995) 85-112
68. Handy C. Trust and the virtual organization. Harvard Business Review 73 3 (1995) 40-50
69. Hoffman D.L., Novak T.P., and Peralta M. Building consumer trust online. Association for Computing Machinery. Communications of the ACM 42 4 (1999) 80-85
70. Hollis M. Trust within Reason (1998), Cambridge University Press, Cambridge, UK
71. Houston R.W., and Taylor G.K. Consumer perceptions of CPA Web Trust SM assurances: evidence on expectation gap. International Journal of Auditing 3 (1999) 89-105
72. Hsiung H., Scheurich S., and Ferrante F. Bridging e-business and added trust: keys to e-business growth. IT-Pro (March-April 2001) 41-45
73. Hu X., Lin Z., and Zhang H. Trust-promoting seals in electronic markets: an exploratory study of their effectiveness for online sales promotion. Journal of Promotion Management 9 1-2 (2003) 163-180
74. Hulland J. Use of Partial Least Squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal 20 2 (1999) 195-204
75. Jacoby J., and Kaplan L. The components of perceived risk. Advances in Consumer Research 3 (1972) 382-383
76. Jarvenpaa S.L., Knoll K., and Leidner D.E. Is anybody out there? Antecedents of trust in global virtual teams. Journal of Management Information Systems 14 4 (1998) 29-64
77. Jarvenpaa S.L., Tractinsky N., Saarinen L., and Vitale M. Consumer trust in an Internet store: a cross-cultural validation. Journal of Computer Mediated Communication 5 2 (1999)
78. Jarvenpaa S.L., Tractinsky N., and Vitale M. Consumer trust in an Internet store. Information Technology and Management 1 1-2 (2000) 45-71
79. Jeffries F.L., and Reed R. Trust and adaptation in relational contracting. Academy of Management. The Academy of Management Review 25 4 (2000) 873-882
80. Kee H., and Knox R. Conceptual and methodological considerations in the study of trust. Journal of Conflict Resolution 14 (1970) 357-366
81. Kim D.J., Sivasailam N., and Rao H.R. Information assurance in B2C websites for information goods/services. Electronic Markets 14 4 (2004) 344-359
82. Kim D.J., Song Y.I., Braynov S.B., and Rao H.R. A multi-dimensional trust formation model in B-to-C e-commerce: a conceptual framework and content analyses of academia/practitioner perspective. Decision Support Systems 40 2 (2005) 143-165
83. Kimery K.M., and McCord M. Third-party assurances: mapping the road to trust in e-retailing. Journal of Information Technology Theory & Application (JITTA) 4 2 (2002) 63-82
84. Kohli A. Determinants of influence in organizational buying: a contingency approach. Journal of Marketing 53 (1989) 50-65
85. Koreto R. In CPAs we trust. Journal of Accountancy 184 6 (1997) 62-64
86. Kotkin J. The mother of all malls. Forbes 161 7 (1998) 60-65
87. Kovar S.E., Burke K.G., and Kovar B.R. Consumer perceptions of CPA WebTrust assurances: evidence of an expectation gap. International Journal of Auditing 3 (2000) 89-105
88. Lee J.-N., and Kim Y.-G. Effect of partnership quality on IS outsourcing: conceptual framework and empirical validation. Journal of Management Information Systems 15 4 (1999) 29-61
89. Lewin K. Forces behind food habits and methods of change. Bulletin of the National Research Council 108 (1943) 35-65
90. Light D.A. Sure, you can trust us. MIT Sloan Management Review 43 1 (2001) 17
91. Luhmann N. Trust and Power (1979), Wiley, Chichester, UK
92. Luhmann N. Familiarity, confidence, trust: problems and alternatives. In: Gambetta D. (Ed). Trust: Making and Breaking Cooperative Relations (1988), Basil Blackwell, Oxford 94-107
93. MacCallum R.C., and Browne M.W. The use of causal indicators in covariance structure models: some practical issues. Psychological Bulletin 114 3 (1993) 533-541
94. Manchala D.W. E-commerce trust metrics and models. IEEE Internet Computing 4 2 (2000) 36-44
95. Margherio L. The Emerging Digital Economy (1998), U.S. Department of Commerce, Washington, D.C.
96. Marsh S. Formalizing trust as a computational concept. Department of Computer Science (1994), University of Stirling, Scotland, UK
97. Mauldin E., and Arunachalam V. An experimental examination of alternative forms of web assurance for business-to-consumer e-commerce. Journal of Information Systems 16 (2002) 33-54 (Supplement)
98. Mayer R.C., Davis J.H., and Schoorman F.D. An integrative model of organizational trust. Academy of Management Review 20 3 (1995) 709-734
99. McAllister D.J. Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal 38 1 (1995) 24-59
100. McCullough D. Web-based market research: the dawning of a new age. Direct Marketing 61 8 (1998) 36-37
101. McKnight D.H., and Chervany N.L. What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. International Journal of Electronic Commerce 6 2 (2002) 35-60
102. McKnight D.H., Cummings L.L., and Chervany N.L. Initial trust formation in new organizational relationships. Academy of Management Review 23 3 (1998) 473-490
103. McKnight D.H., Choudhury V., and Kacmar C. The impact of initial consumer trust on intentions to transact with a web site: a trust building model. Journal of Strategic Information Systems 11 3-4 (2002) 297-323
104. McKnight D.H., Kacmar C.J., and Choudhury V. Shifting factors and the ineffectiveness of third party assurance seals: a two-stage model of initial trust in a web business. Electronic Markets 14 3 (2004) 252-266
105. Miranda S.M., and Saunders C.S. The social construction of meaning: an alternative perspective on information sharing. Information Systems Research 14 1 (2003) 87-107
106. Moore G.C., and Benbasat I. Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research 2 3 (1991) 192-222
107. Moorman C., Deshpande R., and Zaltman G. Factors affecting trust in market research relationships. Journal of Marketing 57 1 (1993) 81-101
108. Moukas A., Zacharia G., and Maes P. Amalthaea and Histos: multiagent systems for WWW sites and reputation recommendations. In: Klusch M. (Ed). Intelligent Information (1999), Springer-Verlag
109. Nunnally J.C. Psychometric Theory. 2nd ed. (1978), McGraw-Hill, New York
110. Nunnally J.C., and Bernstein I.H. Psychometric Theory. 3rd ed. (1994), McGraw-Hill, New York
111. OECD. The economic and social impact of electronic commerce. Organization for Economic Co-operation and Development (1998). http://www.oecd.org/subject/e_commerce/summary.htm http://www.oecd.org/subject/e_commerce/summary.htm
112. Olson J.S., and Olson G.M. i2i trust in e-commerce. Association for Computing Machinery. Communications of the ACM 43 12 (2000) 41-44
113. Pack T. Can you trust internet information?. Link-Up 16 6 (1999) 24
114. Parasuraman A., Zeithaml V.A., and Berry L.L. SERVQUAL: a multiple-item scale for measuring customer perceptions of service quality. Journal of Retailing 64 1 (1988) 12-40
115. Pavlou P.A. Consumer acceptance of electronic commerce: integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce 7 3 (2003) 101-134
116. Pavlou P.A., and Fygenson M. "Understanding and Predicting Electronic Commerce Adoption: An Extension of the Theory of Planned Behavior". MIS Quarterly 30 1 (2006) 115-143
117. Pavlou P.A., and Gefen D. Building effective online marketplaces with institution-based trust. Information Systems Research 15 1 (2004) 37-59
118. Peter J.P., and Ryan M. An investigation of perceived risk at the brand level. Journal of Marketing Research 13 (1976) 184-188
119. Peter P.J., and Tarpey L.X. A comparative analysis of three consumer decision strategies. Journal of Consumer Research 2 1 (1975) 29-37
120. Plank R.E., Reid D.A., and Pullins E.B. Perceived trust in business-to-business sales: a new measure. The Journal of Personal Selling & Sales Management 19 3 (1999) 61-71
121. Ratnasingam P. The importance of trust in electronic commerce. Internet Research: Electronic Networking Applications and Policy 8 4 (1998) 313-321
122. Ratnasingham P. The importance of trust in electronic commerce. Internet Research: Electronic Networking Applications and Policy 8 4 (1998) 313-321
123. Ratnasingham P. Internet based EDI trust and security. Information Management & Computer Security 6 1 (1998) 33-39
124. Ravichandran T., and Rai A. Quality management in systems development: an organizational system. MIS Quarterly 24 3 (2000) 381-415
125. Resnick P., Zeckhauser R., Friedman E., and Kuwabara K. Reputation systems. Communications of the ACM 43 12 (2000) 45-48
126. Rotter J.B. Generalized expectancies for interpersonal trust. American Psychologist 26 (1971) 443-450
127. Rousseau D.M., Sitkin S.B., Burt R.S., and Camerer C. Not so different after all: a cross discipline view of trust. The Academy of Management Review 23 3 (1998) 395-404
128. Shapiro D., Sheppard B., and Cheraskin L. Business on a handshake. The Negotiation Journal 8 (1992) 365-377
129. Shapiro S.P. The social control of impersonal trust. American Journal of Sociology 93 3 (1987) 623-658
130. Sharif K.J., Kalafatis S.P., and Samouel P. Cognitive and behavioral determinants of trust in small and medium-sized enterprises. Journal of Small Business and Enterprise Development 12 3 (2005) 409-421
131. Sivasailam N., Kim D.J., and Rao H.R. What companies are(n't) doing about web site assurance. IT Pro 4 3 (2002) 33-40
132. C., Snijders, "Trust and Commitments." Utrecht, Netherlands: University of Utrecht, Doctoral Dissertation, (1996).
133. Swaminathan V., Lepkowska-White E., and Rao B.P. Browsers or buyers in cyberspace? An investigation of factors influencing electronic exchange. Journal of Computer Mediated Communication 5 2 (1999)
134. Swan J.E., Bowers M.R., and Richardson L.D. Customer trust in the salesperson: an integrative review and meta-analysis of the empirical literature. Journal of Business Research 44 2 (1999) 93-107
135. Urban G.L., Sultan F., and Qualls W.J. Placing trust at the center of your Internet strategy. Sloan Management Review 42 1 (2000) 39-48
136. Walczuch R., Seelen J., and Lundgren H. Psychological determinants for consumer trust in e-retailing. In: Schoop M., and Walczuch R. (Eds). Eighth Research Symposium on Emerging Electronic Markets (RSEEM 01) (2001), Maastricht, Netherlands. http://www-i5.informatik.rwth%1Eaachen.de/conf/rseem2001/ http://www-i5.informatik.rwth-aachen.de/conf/rseem2001/
137. Wilkie W.L., and Pessemier E.A. Issues in marketing's use of multi-attribute attitude models. Journal of Marketing Research 10 4 (1973) 428-441
138. Williamson O.E. Calculativeness, trust, and economic organization. Journal of Law and Economics 36 (1993) 453-486
139. Wixom B.H., and Watson H.J. An empirical investigation of the factors affecting data warehousing. MIS Quarterly 25 1 (2001) 17-41
140. Wold H. Partial least squares. In: Kotz S., and Johnson N.L. (Eds). Encyclopedia of Statistical Sciences vol. 6 (1985), Wiley, New York 581-591
141. Zacharia G., and Maes P. Trust management through reputation mechanisms. Applied Artificial Intelligence 14 9 (2000) 881-907
142. Zhang H. Trust-promoting seals in electronic markets: impact on online shopping decisions. Journal of Information Technology Theory & Application (JITTA) 6 4 (2004) 29-40
143. Zikmund W., and Scott J. A multivariate analysis of perceived risk, self confidence and information sources. In: Ward S., and Wright P. (Eds). Advances in Consumer Research vol. 1 (1973), Association for Consumer Research, Urbana, IL 406-416
144. Zucker L. Production of trust: institutional sources of economic structure (1840-1920). Research in Organizational Behavior 8 (1986) 53-111