Abstract
This chapter outlines various models which can be used to predict users’ trust on online shopping, to enhance user’s trust on online vendor, and to estimate the risk in an online transaction. The discussed models are selected to provide an overview of different aspects which can be used by the service providers and developers to identify the factors which impact user’s online trust. The factors that have been identified can be further used as a guide to enhance user’s trust levels. The rest of the article is organized as follows. In the next section, four models are discusses starting from Cheung and Lee (2000) conceptual model of trust in electronic environment to the model presented by Mahmood (2006a) that relies on mathematical equations to assist user to compare and evaluate online retailers. After discussing the presented models, the impact and effect of Web 2.0 technologies are discussed in future directions. The potential use of FOAF and RDF to create completely decentralized repository of users’ trust evaluations which can be tapped into any application that uses Web 2.0 is also discussed in future directions. Concluding remarks and model comparison are presented the conclusion.
TopIntroduction
This chapter outlines various models which can be used to predict users’ trust on online shopping, to enhance user’s trust on online vendor, and to estimate the risk in an online transaction. The discussed models are selected to provide an overview of different aspects which can be used by the service providers and developers to identify the factors which impact user’s online trust. The factors that have been identified can be further used as a guide to enhance user’s trust levels. The rest of the article is organized as follows. In the next section, four models are discusses starting from Cheung and Lee (2000) conceptual model of trust (Figure 1) in electronic environment to the model presented by Mahmood (2006a) that relies on mathematical equations to assist user to compare and evaluate online retailers. After discussing the presented models, the impact and effect of Web 2.0 technologies are discussed in future directions. The potential use of FOAF and RDF to create completely decentralized repository of users’ trust evaluations which can be tapped into any application that uses Web 2.0 is also discussed in future directions. Concluding remarks and model comparison are presented the conclusion.
Figure 1. A conceptual model of trust in Internet shopping (Cheung & Lee, 2000)
TopAn Overview Of Trust Models
Cheung and Lee (2000) showed that consumer trust in online shopping can be predicted by following two sets of experiences: factors which contribute to the sense of merchant’s trustworthiness, and external factors which are linked to the external environment. The merchant’s associated sense of trustworthiness is linked to its perceived integrity, competence, security and privacy controls in place. The external environment contributing factors include third party recognition (e.g., trusted party seals of approval) and legal framework. The model showed that the combined effect of both sets of factors on consumer’s overall trust belief is mediated by the consumer’s tendency to trust. The model also acknowledges the relationship between perceived risk and online consumer’s trust response.
Key Terms in this Chapter
Privacy Statement: A statement posted on the company’s or individual’s Web site that explains the personal information being collected with or without a visitor’s consent, the reasons it is being collected, and how the collected information will be used or shared. The privacy statement also states that how the information provided by someone else is used and shared.
Web 2.0: A network platform, enabling the utilization of distributed services such as social networking and communication tools. It is also referred as the architecture of participation.
Trusted Referral: The information regarding a product or physical or online business, service or individual acquired from either the user’s physical or online trusted network. It impacts the user’s initial and subsequent levels of trust in an online business. The impact is directly related to the user’s level of trust on the source in terms of source’s credibility, honesty and ability.
Online Reputation: The online information regarding an e-business from the past direct or indirect experiences of a large body of users. It is the general opinion of the users toward a person, a group of people, or an organization in the cyberspace.
Collective Trust Transfer: Collective trust transferring techniques rely on combined effort of several users, service providers and communities. Such techniques have much wider impact on potential customers, as they involve large number of contributing parties and are widely available.
Trust: The subjective estimation by which an individual, A, estimates about how likely another individual, B, performs a given task on which its welfare (interests) depends. It also consists of the elements of dependence, competence, disposition and fulfillment.