A model of trust in online relationship banking

Abstract

The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank‐to‐customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic behaviour as antecedents to trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical to developing trust as well as relationship commitment. Communication has a moderate influence on trust, while opportunistic behaviour has significant negative effect. Also finds higher perceived trust to enhance significantly customers’ commitment in online banking transaction. An important contribution concerns how trust is developed and sustained over different levels of customer relationship in online banking. The future commitment of the customers to online banking depends on perceived trust.

Cooperative Strategies for Improving the Tourism Industry in Remote Geographic Regions: An Addition to Trust and Commitment Theory with one Key Mediating Construct

“…Many studies have shown that trust leads to commitment (Becker, 1960;Axelrod, 1984;Morgan & Hunt, 1994;Wetzels et al, 1998;Garbarino & Johnson, 1999;Varamä ki, 2001;Ylimaz & Hunt, 2001;Ekelund, 2002;Rodriguez & Wilson, 2002;Wong & Sohal, 2002;Mukherjee & Nath, 2003). We propose that trust can be reinforced through interpersonal commitment (Morgan & Hunt, 1994) and ultimately enhance interorganizational commitment (Mavondo & Rodrigo, 2001).…”

“…To minimize these risks, firms in successful networks share resources and operations with others they can trust. Trust initially leads to greater interpersonal commitments (Becker, 1960;Axelrod, 1984;Morgan & Hunt, 1994;Wetzels et al, 1998;Garbarino & Johnson, 1999;Varamä ki, 2001;Ylimaz & Hunt, 2001;Ekelund, 2002;Rodriguez & Wilson, 2002;Wong & Sohal, 2002;Mukherjee & Nath, 2003) as does reciprocity (Kumar, Scheer & Steenkamp, 1995;Mavondo & Rodrigo, 2001). Moreover, interpersonal commitment ultimately influences interorganizational commitment (Yoon, Baker & Ko, 1994;Mavondo & Rodrigo, 2001).…”

“…Indeed, the loss of even one member of a network decreases the variety of products and activities offered to customers, as well as the ability to meet customer expectations. Thus, firms that understand the role of cooperation will accept individual short-term sacrifices to achieve longer-term benefits for the group (Dwyer, Schurr, & Oh, 1987;Gundlach, Achrol & Mentzer, 1995;Garbarino & Johnson, 1999;Ylimaz & Hunt, 2001;Ekelund, 2002;Mukherjee & Nath, 2003).…”

Multilevel and multidimensional scale for online trust

“…The online context entails greater difficulties (Grewal, Lindsey-Mullikin & Munger, 2003;Reichheld & Schefter, 2000;Bhattacherjee, 2002) and the degree of uncertainty is greater (Grabner-Krauter, 2002). In addition, the peculiarities of online banking enhance the importance of trust (Grabner-Kräut-er & Faullant, 2008), and distrust is one of the main reasons, stated in the recent literature, that justify the fear that users still show when conducting financial transactions over the Internet (Mukherjee & Nath, 2003;Rotchanakitumnuai & Speece, 2003;Luarn & Lin, 2005;. Hence, this lack of confidence can be enhanced if the user does not know "in depth" the company (Cheung & Lee, 2006), if he or she is not familiar with the network, or if the user has suspicion towards the technology or the features that define the personality of the individual (Ruiz, Izquierdo & Calderón, 2007).…”

“…Forth, in order to response to insecurity, the firm could employ different mechanisms that allow the authentication of each partner and the safety access (for example, the digital signature, key authentication, coordinate cards, electronic ID, certificates of a safe connection, secure passwords and so on); making an explicit mention in the website about the use of security elements, as Mukherjee and Nath (2003) or Cheung and Lee (2006) suggest or; using certificates such as TRUSTe, BBBOnline, Verisign, and so on, since, as Benassi (1999) suggest, they lead online customers to have more willingness to provide personal information (Kuchinskas, 2003). It could be useful also to send instant communications to the user when an online connection has been done, indicating hour, day and access channel.…”