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H2: TPO credibility is positively related to the
value of a Web assurance seal.
when trusting attitudes are present, consumers are
more comfortable sharing personal information
and purchasing online (McKnight, Choudhury,
& Kacmar, 2002). This suggests that as purchase
risk is mitigated, greater trust in the e-retailer is
attained.
Endorser credibility impacts both consumer
attitudes and purchase intentions (Lafferty &
Goldsmith, 1999; Goldsmith et al., 2000; Laf-
ferty et al., 2002). A credible source reduces
situational complexity that allows for greater trust
(Luhmann, 1988). Therefore, a credible TPO is
likely to lessen user perceptions of uncertainty
and risk, leading to positive, trusting attitudes.
The appearance of a Web seal on the e-retailer's
site is often the only signal of TPO involvement
with the e-retailer. Thus, the importance and value
assigned to this signal relates to the formation of
trust toward the e-retailer. This leads to the fol-
lowing hypothesis:
H5: The perception of purchase risk is negatively
related to trust in the e-retailer.
Trust literature suggests that trust acts to
eliminate complexity in a transaction and, thus,
has a positive influence on decisions (Luhmann,
1988). Essentially, trust rules out undesirable fu-
ture actions of other parties. Gefen (2000) shows
that trust in an Internet vendor positively influ-
ences intentions to purchase from that vendor, and
Jarvenpaa, et al. (2000) support this relationship,
as well. According to the well-known theory of
reasoned action (TRA) (Ajzen & Fishbein 1980)
from social psychology, attitude formation leads
to an intention, and intention has a direct effect on
actual behavior. In terms of consumer behavior,
the main predictor variable in a purchase decision
is the consumer's attitude or intention toward
purchasing. Thus, based on TRA and past IS
research, we hypothesize the following:
H3: The value of a Web assurance seal is posi-
tively related to trust in the e-retailer.
Organizational credibility includes the dimen-
sion of trustworthiness (DeSarbo & Harshman,
1985), and trust reduces consumer uncertainty and
perceptions of risk (Fukuyama, 1995; Morgan &
Hunt, 1994). Therefore, the greater the perception
of TPO credibility, the less purchase risk is likely
to be associated with an unknown e-retailer.
H6: Trust in the e-retailer is positively related to
purchase intentions.
H4: TPO credibility is negatively related to per-
ceptions of purchase risk.
researCh methodology
Consumers often hesitate to transact with
unknown e-retailers due to uncertainty about
vendor behavior and perceived technology risks
(e.g., viruses, spam). The nature and complexity
of the electronic environment are related directly
to the importance of trust. When one is vulnerable
to the misconduct of others, they have a greater
need to trust (Rousseau, Sitkin, Burt, & Camerer,
1998). Research shows that high degrees of risk
in electronic sales transactions lead to attitudes
of distrust and unwillingness to purchase online
(Jarvenpaa, Tractinsky, & Vitale, 2000). However,
In this study, the subjects evaluated an actual Web
site for an online computer store that was renamed
Laptop King (Appendix A). Six separate home
pages were created and stored on a Web server
managed by one of the researchers. Four home
pages prominently displayed one of the institution-
based assurances being tested (i.e., BBB OnLine,
TRUSTe, Verisign, or WebTrust); one home page
displayed all four Web seals; and one page was
created without any assurance structure. Links
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