E-commerce: the role of familiarity and trust

Abstract

Familiarity is a precondition for trust, claims Luhmann [28: Luhmann N. Trust and power. Chichester, UK: Wiley, 1979 (translation from German)], and trust is a prerequisite of social behavior, especially regarding important decisions. This study examines this intriguing idea in the context of the E-commerce involved in inquiring about and purchasing books on the Internet. Survey data from 217 potential users support and extend this hypothesis. The data show that both familiarity with an Internet vendor and its processes and trust in the vendor in¯uenced the respondents' intentions to inquire about books, and their intentions to purchase them. Additionally, the data show that while familiarity indeed builds trust, it is primarily people's disposition to trust that a ected their trust in the vendor. Implications for research and practice are discussed. 7

Trustworthiness in electronic commerce: the role of privacy, security, and site attributes

“…The Cronbach's alpha for this modified scale varied widely across the sites, ranging from 0.55 to 0.80; however, the average reliability coefficient for this scale was 0.72, slightly under previous studies' results (0.78 and 0.85), but still acceptable. The intentions to purchase scale exhibited reliability estimates slightly above that reported by Gefen (2000) at a ¼ 0.82. Finally, the privacy and security features scales, created by the authors, had an internal validity coefficient of 0.86.…”

“…Intention to purchase from a Web site was measured using a scale developed by Gefen (2000). This 4-item scale measured both inquiry and buying intentions.…”

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“…When the customers trust e-retailers, they will disclose their personal information (Kim, 2003), the e-retailers are easier to deal with in the future and money transactions easier to track. Moreover, trust is an efficient marketing tool, which can attract more customers to engage in future buying behavior (Gefen, 2000) and influence their e-purchasing intentions (Jarvenpaa, Tractinsky, & Vitale, 2000). Thereby, this paper posited that:…”

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“…Research has recognized the importance of trust as an effective mental shortcut to diminish uncertainty perception [11]. In a co-working relationship in which trust exists, people are not necessarily worried about opportunistic or undesirable conduct of others that may inhibit the accomplishment of the shared goal [10], [12].…”