Examining User Perception of Third-Party Organization Credibility and Trust in an E-Retailer - End User Computing Challenges and Technologies: Emerging Tools and Applications - page 210

introduCtion

One objective of this study is to extend the
IS trust research in order to encompass Internet
user perceptions of the role of institution-based
assurance structures in e-commerce. Online
trust is a complex and multi-dimensional con-
cept related to the success of e-retailers, and the
role of assurance mechanisms may be perceived
differently by e-retailers and Internet users. For
example, e-retailers utilize assurance service
providers such as BBB Online or TRUSTe in
order to convey legitimacy, among other things,
to online consumers. However, research shows
that online shoppers rarely consult the privacy and
security statements of the assurance provider or
differentiate among providers (Odom et al., 2002).
Nevertheless, third-party assurances are shown
to promote trust in the electronic environment.
It is likely that online consumers consider other
aspects of the assurance provider apart from the
actual assurances before entering into electronic
transactions. The specific attributes of assurance
providers that convey trust is generally unknown
and unexamined. This dearth of knowledge has
significant implications for e-retailers in their
selection of a provider and in the scope of services
that they purchase. This study contributes to the
online trust literature by examining additional
antecedents of trust in the online marketplace.
Specifically, a model is constructed that exam-
ines user attitudes toward third-party organization
(TPO) assurance providers and the effect of those
attitudes on trust in the e-retailer. We propose
that TPO credibility is an important factor in the
value that users assign to the institution-based
assurance (i.e., Web site seal) associated with the
TPO. Credibility factors are important anteced-
ents of trust in tradition buyer-seller exchanges
(Harmon & Coney, 1982; Moore, Hausknecht,
& Thamodaran, 1988; Sternthal, Dholakia, &
Leavitt, 1978) but have not been applied yet to
the electronic marketplace. It is our goal to better
understand the mechanisms by which institutional
assurance structures shape the trusting attitudes

Compared to the 130-plus-years existence of tele-
phone communications in the United States, the
development of the Internet is still in its infancy.
Today, more people go online to communicate
via e-mail than to send first-class letters. The
U.S. Census Bureau reports that more than 54%
of Americans have access to the Internet, with
84% of Internet users engaging in e-mail, 67%
searching for information, and 39% purchasing
products (NTIA, 2002). The Internet is changing
not only the way people communicate but how
they shop, invest, and gather information. By over-
coming barriers of time, place, and distance, the
Internet renders considerable economic benefits.
Yet, significant numbers of Internet users hesitate
to transact online and, thus, forgo the economic
efficiencies of the medium.
Empirical research confirms the significance
of trust in order for e-commerce transactions
to occur between buyers and unknown sellers
(Hoffman, Kalsbeek, & Novak, 1999; Shankar,
Urban, & Sultan, 2002). Since trust is an impor-
tant component of e-commerce, understanding
the antecedents to trusting attitudes should be of
major concern to e-retailers. Often, Internet users
decline to enter into transactions with e-retailers
in the absence of certain assurances. IS research
reveals a positive relationship between institu-
tion-based structures (e.g., Web assurance seals),
online trust, and intent to purchase (Houston &
Taylor, 1999; Kovar, Gladden-Burke, & Kovar,
2000; Lala, Arnold, Sutton, & Guan, 2002; Odom,
Kumar, & Saunders, 2002; Wakefield, 2001).
Institution-based structures are significant trust
drivers that mitigate perceived risks and allow
Internet users to believe that they are supported
externally (McKnight, Cummings, & Chervany,
1998). Researchers (Shankar et al., 2002) believe
it is important to continue to identify the salient
assurance needs of online stakeholders in order to
implement and to enhance the dominant drivers
of trust in an e-business strategy.