Delivery and Payment Options as Antecedents to Enhanced Online Retailing

Delivery and Payment Options as Antecedents to Enhanced Online Retailing

Kevin J. Shanahan (Mississippi State University, USA), Barbara Ross-Wooldridge (The University of Texas at Tyler, USA) and Charles M. Hermans (Missouri State University, USA)
Copyright: © 2011 |Pages: 13
DOI: 10.4018/978-1-60960-577-3.ch004
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Abstract

We first measure attitudes toward a product and attitudes toward product quality when an unknown brand is associated with a well-known and trusted co-brand in the form of payment and delivery options; employing a classic co-branding strategy. Theory suggests that association with a trusted brand should lead to improved positive assessment of an unknown brand. Results suggest the popular belief that trusted brands improve respondents’ assessments of unknown brands through a co-branding strategy may not be supported when there is a restriction on choice of payment and delivery options. That is, when including only a limited number of co-brands, brand associations may give the perception of restricted choice, leading to a lessened level of trust in the co-brand. We then repeat the study using a known branded product and known branded delivery and payment methods. Results show no difference in consumer perceptions between no cobrand and a full complement of cobrands. However, a restricted set of payment and delivery options leads to a more negative attitude toward the product and product quality.
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Definitions Of Trust

Trust in General

Trust has played an important role in relationships since ancient times. Many of our current traditions date back to acts of trust, such as shaking hands to illustrate that a weapon was not held to clinking of glasses for proving that wine was not poisoned (Shneiderman, 2000). Trust is important in all aspects of life and though numerous authors have defined trust (Chen and Barnes, 2007; Goodwin, 1996, Srinivasan, 2004; Harridge-March, 2006; Shneiderman, 2000) all of the definitions have several key elements; trust involves one person bestowing upon another (person, object, or process) the belief of reliability and dependability. Trust is only important in situations of uncertainty (Ha, 2004; Goodwin, 1996; Srinivasan, 2004). Uncertainty can be thought of risk and risk exists when one is less than 100% certain that something will turn out as expected (Harridge-March, 2006). The value of trust has led to the use of metaphor to illustrate its importance in our lives: it has been compared to grease that keeps the wheel turning (Goodwin, 1996) as well as to chicken soup as all sorts of positive benefits are derived when people willing to get involved (Shneiderman, 2000).

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