Culture and Consumer Trust in Online Businesses

Culture and Consumer Trust in Online Businesses

Robert Greenberg (Washington State University, USA), Bernard Wong-On-Wing (Southwestern University of Finance and Economics, China and Washington State University, USA) and Gladie Lui (LingnanUniversity, Hong Kong)
Copyright: © 2008 |Pages: 19
DOI: 10.4018/jgim.2008070102
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Abstract

The importance of consumer trust to the success of online businesses is well documented in the literature. Given the global nature of online transactions, an important question is whether trust and trust formation differ across cultures. This study compared Hong Kong and U.S. consumer trust in online businesses. Specifically, the study examined security and privacy risks related to the purchase of products as well as services. The results show that significant differences exist between consumers from the two countries regarding the perceived level of online business risks and the formation of trust via the transference process. These findings reiterate and underscore the significance of including national culture in studies of trust in e-commerce. The results also have potential implications for online businesses as well as third party certification and assurance services.

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