Information Technology Reference
In-Depth Information
Chapter XII
Examining User Perception of
Third-Party Organization
Credibility and Trust in an
E-Retailer
Robin L. Wakefield
Hankamer School of Business, Baylor University, USA
Dwayne Whitten
Mays School of Business, Texas A&M University, USA
abstraCt
Despite the fact that over half of U.S. residents are now online, Internet users hesitate to enter into
transactions with e-retailers in the absence of certain assurances. Recent IS research shows that institu-
tion-based assurance structures, such as Web seals, are drivers of online trust. We extend the research
in online trust to include the effect of third-party organization (TPO) credibility on both Internet users'
perceptions of assurance structures and purchase risk. Findings indicate that TPO credibility is posi-
tively related to the value that Internet users assign to assurance structures and negatively related to
perceptions of purchase risk. Furthermore, perceptions of TPO credibility are strongly associated with
users' trusting attitudes toward the e-retailer. For some online consumers, trust may have less to do
with privacy and security and more to do with the reputation of the TPO. These findings have impor-
tant implications for the design of Web sites, the selection of assurance providers and services, and the
reputation of both e-retailers and providers.
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