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A model of customers' initial trust in unknown online retailers: an empirical study

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  • Euijin Kim
  • Suresh Tadisina

Abstract

Trust is considered one of the key success factors of e-commerce, and winning customers' trust initially is especially important for web-based companies (e-businesses), as initial trust could be a starting point from which more sustainable relationships could possibly develop. In answering the question of how e-business customers develop initial trust especially in unknown online retailers, we propose a model with a two-factor initial trust model (competence and goodwill) and three different types of predictors: two trustee's characteristic-based factors (company profile and website quality), one institution-based factor (third-party support) and one trustor's personality-based factor (propensity to trust). This model was empirically tested and we found some evidence that website quality and third-party support had significant effect on initial trust. Company profile and propensity to trust didn't have any direct effects on initial trust, but a type of propensity to trust showed some moderating effects.

Suggested Citation

  • Euijin Kim & Suresh Tadisina, 2010. "A model of customers' initial trust in unknown online retailers: an empirical study," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 6(4), pages 419-443.
    • Handle: RePEc:ids:ijbisy:v:6:y:2010:i:4:p:419-443
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    Cited by:

    1. Seyed Rajab Nikhashemi & Farzana Yasmin & Ahasanul Haque & Ali Khatibi, 2011. "Study on Customer Perception towards Online-Ticketing in Malaysia," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(6), pages 03-13, September.

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