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Determining the Factors which Engender Customer Trust in
Business-to-Consumer (B2C) Electronic Commerce
Fahim Akhter
Zayed University,
UAE
fahim.akhter@zu.ac.ae
Dave Hobbs
University of Bradford,
UK
d.hobbs@bradford.ac.uk
Zakaria Maamar
Zayed University,
UAE
zakaria.maamar@zu.ac.ae
Abstract
This paper presents a study that focuses on the
initial trust that is developed even before the
occurrence of the first transaction between a consumer
and an online company. The study reveals how initial
trust is formed without any previous experience by
interacting with the Web site interface. This study
analyzes how important it is for the Web site to have a
trusted interface to keep the customer interested in
their business. The study tests the premise that
“consumer initial trust is positively related to a trust
inducing user interface” and investigates what other
features are important in assessing whether or not
purchase.
1. Introduction & Motivation
Many industry experts believe that trust is a critical
non-technological factor for Business-to-Consumer
(B2C) electronic commerce (e-commerce) success [1].
Customers are realizing the importance and benefits of
shopping online such as convenience, comparison,
product research, larger selection, and lower prices.
However, online trust may be influenced by many
factors such as security, privacy, lack of live
interactions, and conducting business with unknown
parties. Lack of online trust is one of the major reasons
for consumers not shopping from online vendors [1].
In this study, the experiment adopted a structured
technique in the mode of a survey to quantify data. This
study adopted the qualitative method of existential
phenomenology [2]. The rationale of using existential
phenomenology was to describe experiences as they are
lived, and thus the interview was considered an
appropriate tool for understanding of user’s experience
[2]. The outcome of interview-derived information is
accepted as valid because respondents’ own words are
used for analyzing and expressing their experiences [3].
The experiment was tightly controlled and run on an
individual basis in order to collect as much data as
possible through observation and interview. Fourteen
senior undergraduates and four member of faculty who
had experienced online shopping were interviewed
using open-ended questions. Transcriptions of the
recorded interviews were later used for analysis using
the hermeneutic circle [2]. In this technique, the
researcher tries to understand the respondent’s view
and put aside his own preconceptions of a situation.
This paper is organized as follows. Section 2
discusses research methodology that demonstrates the
value of qualitative technique for inquiry and analysis
of data. The research objective and hypotheses are
explained in Section 3. The results and summary of
hypotheses testing follow in section 4, and section 5
provides the conclusions from the research.
2. Methodology
All of the respondents were college graduates and
professionals, comfortable with computer use, and had
some experience of on-line shopping. The study was
conducted with 18 subjects of whom 12 were female
and 6 were male with an average age of 30. Although
this sample is clearly not representative of the
population at large, the sample profile does correspond
with currently identified typical on-line shoppers [4].
Thus, the experiences relayed by these respondents are
considered a reasonable representation of a random
sampling of regular Internet shoppers. A valid sample
of known Internet shoppers ensures that the
respondent’s reports are based on their familiarity with
the use of the medium rather than being influenced by a
one-time occurrence that may not be representative of
on-line shopping. As a result, their reports are expected
to have greater likelihood of generalization.
In order to test the methodology, face-to-face
interviews were conducted to collect data. Subjects
shared their online experience and future expectations
about online shopping with the researchers.
Participation was voluntary and no compensation was
offered for participating in interview, which lasted 45-
Proceedings of the IEEE International Conference on E-Commerce Technology
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50 minutes. Each interview began with open-ended
questions in English posed in a way to encourage the
respondent to develop dialogue resembling a
conversation, providing the context and basis from
which the respondent’s descriptions of a shopping
experience could flow freely and in detail.
3. Formulation of Hypotheses
H 1: Consumer initial trust is positively related to a
trust inducing user interface.
Consumer trust level receives positive or negative
reinforcement depending on the look and structure of
the Web site interface. Given the importance of these
aspects of a Web interface in persuading consumers to
remain with the particular site, it is surprising that little
research has focused on effective interface design
features. Empirical studies are therefore needed to
assess interface features that contribute to the formation
of initial trust. Most of the theoretical research to date
has been on how trust may be engendered in
consumers’ actions, rather than on the importance of
the interface features that might lead to the fostering of
trust [1, 2].
The study focuses on the initial trust that is
developed even before the consumer conducts a first
transaction with a company. This initial level of trust
may change over time and with repeated interactions,
depending on the extent to which such interactions take
place. Therefore, the online vendor must develops trust
through their Web site interface and demonstrate that
they are trustworthy. Another reason for the importance
of initial trust is the possibility of low switching cost
for new customers due to the large alternatives of
companies and products; it may be much easier for
consumers to switch to a different vendor or product
after their first experience. It is very important for the
Web site to have a trusted interface in order to keep the
new customer interested in their business. Thus, it is
believed that a trusted interface is directly proportional
to consumer initial trust.
H2: The presence of security indicators in an online
medium increases the consumer’s willingness to
conduct an electronic transaction as compared to
design features (convenience, ease of use, navigation).
This study therefore investigated the elements that
influence online trust and provides a framework that
allows identification of the issues of trust in online
shopping. Consumers perceive security threats from
different perspectives, for example whether the Web
server is owned and operated by a legitimate company,
how one can verify that the Web pages do not contain
malicious code, or how one can ensure that the Web
server will not distribute the information to a third
party. Similarly it is important to be able to confirm
that the information sent back and forth between the
server and the user’s browser has not been altered.
These concerns illustrate the types of security issue that
can arise in e-commerce transactions. The importance
of security implementation is reflected in the policies
and actions of the company. Consumers analyze the
security policies of vendors mainly through the
company’s statements on their homepage. These
statements normally describe the terms and conditions
of the vendor’s security policies. For example, through
introduction of security features such as the presence of
a secure socket layer, encryption, password and third
party security seals. Some companies explain these
security policies to alleviate consumers concern while
some make these issues hard to find and difficult to
understand.
The effectiveness of communicating a commitment
to consumers by the use of the latest technology such as
third party verification programs, encryption methods,
and data protection is important for online companies
to appreciate. Previous studies [5] have found no
negative correlation between the presence of security
statements and the perceived risk of a site. Research
also revealed that security statements of Web based
companies do show a positive correlation with an
increased likelihood that consumers’ will purchase
from those companies. However, it is not clear under
what conditions the consumer considers security
features more important than ‘pleasure’ features (such
as convenience, ease of use, and ease of navigation)
when assessing an whether to purchase. No studies to
date have yet tested this empirically. Security features
are complex to understand by consumers but, providing
they are properly handled, consumers will confidently
conduct their purchase online. Thus, the second
hypothesis suggests that the security indicators are the
leading factors in the customer’s decision to purchase
online when compared to design features.
4. Findings of the Research
In this qualitative approach, researchers were able
to understand respondents’ detailed accounts of on-line
shopping experiences in a way that would not been
revealed in quantitative research. In the following
section, the themes that surfaced from the 18
interviews, which include trust inducing user interface
and presence of security indicators in an online
Proceedings of the IEEE International Conference on E-Commerce Technology
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medium were analyzed. Respondents whose
experiences are described are referred to by codes to
preserve anonymity.
H1. Initial Trust and User Interface
IK explained that, “if the Web site interface does
not give the impression that the vendor is trustworthy, I
move on to another Web site. The vendors should
adopt friendly user interfaces to enhance their apparent
trustworthiness to initial customers.” Online vendors
should therefore adopt user-friendly measures in their
interfaces to build and enhance vendor-consumer
relationships, which can increase consumers’ trust.
Online vendors should find ways to convey their
trustworthiness to first time consumers in order to have
a long-term relationship. According to MA, “the
customers pay attention to the clipart and color layout
which affects the trustworthiness of the site. The
appearance of the interface should be fresh, and its
main color should be a moderate light color.” FS
indicates, “I feel comfortable with a site which uses
photographs instead of cartoons. However, overuse of
clipart will not help, but may damage the
trustworthiness of the site.” She thinks that a good
product supplemented by a picture reflects the
credibility of the online vendor. She recommends that
interfaces should have images of a higher level of
clarity [photo-realistic images] to attract instant
customer attention rather than lower visual fidelity
images. On the same subject, MA said that he prefers
to a see a product in motion rather then in a static
mode. He believes that interface design, which uses
motion as the sales pitch, keeps the customer engaged
at the Web site and may lead to a purchase decision.
He explained how crucial is the size of the image in
remembering the product; “I remember products for a
longer period of time when they are represented by
larger images as compared to smaller images.”
As for simplicity, IK thinks that customers prefer a
clear design of a Web site because simplicity reduces
the wastage of time, deception and frustration. He
thinks that the goal of a trust inducing interface is to
streamline the shopping experience and eliminate
shoppers’ confusion. The company’s home page is not
just a virtual catalog alone but also actually a
multimedia tool that allows interaction between vendor
and customers.
The results show that the effects of a trust-reflecting
interface may be stronger since new customers have no
cues from previous experience to analyze the company.
Therefore, they tend to compare the interface of the
new company with what they have experienced
previously with other companies. It is believed from
the responses that new customers who perceive a
company to have a trusted interface will be more likely
to trust their product and services after their first visit
to its Web site. In fact, 85 percent of respondents were
found to agree that a trust-inducing interface is
significantly related to encouraging a consumer’s initial
trust, supporting H1. Similarly, 68 percent respondents
believed that a trusted interface of the company could
also be seen as proof of the company’s ability to
provide high quality products and services. In
consequence, they tend to believe that such a company
must also have the resources and capabilities to offer
better products and services. In contrast, based on the
respondent’s experiences, customers who visit an
online company with a badly laid out interface will be
likely to expect that the company will be unable to
provide quality products and services to them, which in
turn decreases their trust in that company.
H2. Presence of Security in an Online Medium
AG’s response recognized the importance that
companies must be able to give assurance that the
customer information will pass through their network
uncorrupted and unaltered. In addition, customers
should be able to verify the identity of the parties they
are doing business with. However, the problem still
remains about whether they and their products and their
services can be trusted. She further added that Web
design issues such as convenience, personalization
capabilities, and ease of use are more important
features than displaying securities, which were
unintelligible to her. MA reported, “I go to the Internet
to purchase because of the convenience of buying
online, not for experiencing a secure system.” Other
respondents such as VC primarily purchased items
from the Internet because of ease of use and ease of
navigation factors rather then security and privacy
features. As AS explained, “she perceives more
trustworthiness from uaemall.com even though overall
security and privacy features my be weak, I would not
be concerned by not seeing lots of seals and logos on
the site as long as I can navigate smoothly and easily
find what I am looking.”
In a similar vein, FH expressed displeasure with one
vendor from whom she had made an online purchase
even though the site claimed to be highly secure: she
expected the vendor to be easily contactable and easy
to correspond with. Another respondent, KD, reported,
“the site was difficult to navigate and contact despite
displaying security seals and logos.” Most non-
technical users have no knowledge about access
Proceedings of the IEEE International Conference on E-Commerce Technology
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control, transparency of identity, surveillance, seals,
trust mark, third part verification, secure socket layers
and encryption. Non-technical online shoppers appear
to prefer convenience, ease of use, and navigation
features to security and privacy. PD reported that, “I
like a clean, simple web site; I do not understand
security logos and languages.” He explained that he
would not purchase from a site if it were “too
complicated to understand and where it was necessary
to fill so many forms for security perspective. I want
minimum clicks to finalize purchase.”
Researchers noticed that consumer's perception of
security while online depends on the simplicity of the
site and on the availability of support from the vendor.
PD reported, "I feel secure about giving my credit card
number because I can follow the provided instruction
easily. I trust it because everything is easy to
understand. There is nothing hidden or obscure." In
contrast, responses from SK and LJ who have sound
knowledge of e-commerce infrastructure prefer more
security presence to social or personal perspectives.
They believe that to achieve the highest degree of trust
could only be possible in the form of security. They
prefer to shop with companies who present
certifications from third parties, Seals of approval from
professional groups.
Online companies depend primarily on their
electronic interface to attract potential customers and to
communicate with them. Therefore, applying trust-
inducing features with the supplement of security is the
most effective method of enhancing online trust.
Customers who understand and follow the layout of the
interface are more likely to perceive the site as secure
and useful. Customers could have a doubt about the
vendor’s product and service if complex security
features control the Web site and presented with
clutter, unfriendly, and unprofessional user interface.
The non-technical responses (from 70% of the
population of respondents) revealed that security
features are less important than convenience, ease of
use, and navigation attributes to their intention to
purchase. Technical respondents (from 30% of the
population of respondents) do understand and pay
attention to security seals, logs and third party trust
marks during online shopping process. People tend to
rate as important what they understand. If respondents
have lack of familiarity with or understanding of
security features as compared to social and personal
features, this lack of understanding might influence
their choice. It is probable that a user’s technical
background and education level may influence the
perception of a trusted Web site in addition to features
related to security and design layout
. Hence, this
hypothesis warrants further investigation to determine
underlying relationships between social versus
technical subjects and their perception of credibility of
online transactions.
5. Summary
This study has found strong support for the first
hypothesis that consumer initial trust is directly related
to a company’s Web site interface. When customers
have no prior business experience with the company
they depend on antecedents to judge the company’s
trustworthiness. Consumers perceive that if the
company’s interface makes them believe that the
company is reliable and trustworthy, it can boost their
trust in it despite no prior shopping experience with the
company. The second hypothesis analyzed the
relationship between security indicators in an online
medium in comparison with social features
(convenience, ease of use, navigation). The analysis did
not support the hypothesis due to the subjects’
technical and social background, as more technically
inclined subject generally prefer security features over
design, whereas non-technical subjects tend to examine
the overall design features when deciding whether to
pursue a purchase. While security features appear to be
important to consumers, the responses suggest that the
social and personal features may actually drive
conclusions about the buying decision.
6. References
[1] Gefen, D. (2002) Customer loyalty in E Commerce,
Journal of the Association for Information Systems, Volume
3, pp. 27-51.
[2] Kvale, S, “the Qualitative Research Interview: A
Phenomenological and a Hermeneutical Mode of
Understanding,” Journal of Phenomenological Psychology,
171-196. 14 (Fall) 1983.
[3] Feagin, J. R., A. M. Orum, and G. Sjoberg, A Case for
the Case Study, Chapel Hill, NC: The University of North
Carolina Press. 1991.
[4] Akhter, F., D. Hobbs, and Z. Maamar, “How Users
Perceive Trust in Virtual Environment” International
Conference on Information and Knowledge Engineering -
Las Vegas, Nevada, June 23-26. 2003.
[6] Miyazaki, A.D., Fernandez, A, “Internet privacy and
security: an examination of online retailer disclosures”
Journal of Public Policy and Marketing 19 (1), 54–6.2000.
Proceedings of the IEEE International Conference on E-Commerce Technology
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