Trusting Beliefs And Online Purchase Decisions
-
Upload
nathantearl -
Category
Documents
-
view
205 -
download
0
description
Transcript of Trusting Beliefs And Online Purchase Decisions
![Page 1: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/1.jpg)
Converting Web Site Visitors into Buyers
Nathan EarlPromotion Management
11/09/2009
![Page 2: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/2.jpg)
Risk
“Using the internet involves a leap of faith. We type our credit cards numbers and other personal information in order to make a purchase over the Internet and trust that this information will not be used in unauthorized fraudulent ways” (Bargh and McKenna 2004)
![Page 3: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/3.jpg)
RISK
Often times the Risk is high enough to keep online buyers from making online purchases
This avoidance has led experts to speculate that the immediate threat to e-commerce is consumers’ perception of RISK
![Page 4: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/4.jpg)
Firms Respond to Threat
• Investing in Web site security
• Technology to protect consumers’ identity and personal & financial information
– By 2005, Web site security was a multibillion dollar industry
![Page 5: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/5.jpg)
Consumers Want More
In spite of high investment in Web site security, Marketers still face challenge of convincing consumers of their firm’s trustworthiness
![Page 6: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/6.jpg)
TRUST
• Establishing TRUST in a computer-mediated environment has proven to be very difficult
• A major challenge is discovering what the consumers’ perception / measure of TRUST actually is
![Page 7: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/7.jpg)
Ways to Establish Trust
• Privacy Statements
• Security Statements
• High-Investment Web sites
![Page 8: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/8.jpg)
Research
A recent large-scale study show indicate that despite consumers’ claims that privacy and security policies/statements are important for establishing credibility, consumers refer, instead, to a Web site’s “surface elements”, such as DESIGN
![Page 9: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/9.jpg)
Article
Converting Web Site Visitors into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and Online Purchase IntentionsAnn E. Schlosser, Tiffany Barnett White and Susan M. Lloyd (2006). Journal of Marketing. Vol 70. p. 133-148
Investigating the impact on Web site design investments on consumers’ trusting beliefs and online purchase intentions
![Page 10: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/10.jpg)
Conceptual Framework
• Authors developed a conceptual framework for understanding how “marketing signals” influence consumers’ trust in e-commerce settings– Marketing signals: Observable actions that
help explain the unobservable• Example—price reduction, advertising expenditures• Example—investing in high-end Web sites to help
convey the firm’s trustworthiness (unobservable)
![Page 11: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/11.jpg)
Signals
Different “signals” can influence different PERCEPTIONS of the firms trustworthiness
This PERCEPTIONS has a direct correlation to the consumer making the actual purchase
![Page 12: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/12.jpg)
Effects of Perceptions
The effects vary according to the purpose of the consumer visiting the firm’s site
• Searching• Browsing
![Page 13: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/13.jpg)
Trust
• “Willingness to rely on an exchange partner in whom one has confidence”
• “Generalized expectancy held by an individual that the word, promise, oral or” written statement of another individual or group can be relied upon”
• “A belief in a person’s competence to perform a specific task under specific circumstances”
![Page 14: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/14.jpg)
Trusting Beliefs
Cognitive Aspects
• Ability
• Benevolence
• Integrity
Represent a “sentiment or expectation about trustworthiness”
![Page 15: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/15.jpg)
Ability
• Ability beliefs reflect the consumer’s confidence that the firm has the skills necessary to perform the job
![Page 16: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/16.jpg)
Benevolence
• Benevolence beliefs reflect confidence that the firm has a positive orientation toward its consumers beyond an “egocentric profit motive”
![Page 17: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/17.jpg)
Integrity
• Integrity beliefs reflect confidence that the firm adheres to a set of moral principles or professional standards that guide its interactions with customers
![Page 18: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/18.jpg)
Trusting Intentions
“Represent a willingness to make oneself vulnerable to another in the presence of RISK”
PURCHASE INTENTION
![Page 19: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/19.jpg)
Searchers
The consumers who “search” for product information
Searchers think about and are persuaded more by product information and have a higher visitor-to-buyer ratio
![Page 20: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/20.jpg)
Findings
• 1st Study—Online purchase intentions depended more on their beliefs about the firm’s Ability rather than Benevolence or Integrity
– Ability is the belief most relevant to Performance
![Page 21: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/21.jpg)
Findings
• 2nd Study—Privacy and Security statements communicated a firm’s benevolence and integrity, but not ability
– High End Web sites did not convey benevolence or integrity beliefs
![Page 22: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/22.jpg)
Findings
• 3rd Study—Web site investment and Ability on online purchase intentions are specific to “searchers” and not “browsers”
• “Browsers”—benevolence and integrity were more important
![Page 23: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/23.jpg)
Findings
• 4th Study—The higher the RISK perceived by the consumer, the more they relied on Ability beliefs
![Page 24: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/24.jpg)
Conclusion
• Web site investment influences searchers’ intentions to buy online by influencing one component of trusting beliefs—Ability, versus Benevolence and Integrity
• Investment in High End Web sites is warranted if the majority of your visitors are “searchers”
![Page 25: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/25.jpg)
Conclusion
• The higher the RISK perceived by the consumer, the more they rely on Ability beliefs– These beliefs are successfully conveyed to the
consumer by the firm through effective “signaling”, like high investment Web sites
![Page 26: Trusting Beliefs And Online Purchase Decisions](https://reader036.fdocuments.in/reader036/viewer/2022070303/549bc26eac7959ec2a8b4568/html5/thumbnails/26.jpg)
Works Cited
Ann E. Schlosser, T. B. (2006). Converting Web Site Visitors into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and Online Purchase Intentions. Journal of Marketing , 133-148.Hoffman, D. L. (1996). Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations. Journal of Marketing , 50-68.Kim, P. H. (2004). Removing the Shadow of Suspicion: The Effects of Apology Versus Denial for Repairing Competence versus Integrity-Based Trust Violations. Journal of Applied Psychology , 104-118.Kumar, N. L.-B. (1995). The Effects of Supplier Fairness on Vulnerable Resellers. Journal of Marketing Research ,
54-65.Moorman, C. R. (1993). Factors Affecting Trust in Market Research Relationships. Journal of Marketing , 81-101.Naquin, C. E. (2003). Online Bargaining and Interpersonal Trust. Journal of Applied Psychology , 113-120.
Paul Herbig, J. M. (1994). Marketing signals in industrial markets. Industrial Management and Data Systems , 16-21.Sitkin, S. B. (1993). Explaining the Limited Effectiveness of Legalistic 'Remedies' for Trust/Distrust. Organization
Science , 367-92.Sobel, M. (1982). Asymptotic Intervals for Indirect Effects in Structural Equation Models. SanFrancisco: Jossey-Bass.