Thanks to the flexibility, ease of interactivity and personalization, the usage of internet has been increasing since it was first introduced back in the early 1980s. The internet has opened a new window and business opportunity that have never been imagined before, thus changing the way consumers shop. Differs from the traditional way of shopping, online shopping has allowed consumers to decide what kind of product they want, when and where they want to purchase the items within their budget by a click of a mouse or mobile phones. Instead of waiting for a premise to be opened and spending so much time looking for a parking space, online shopping provides a convenient way to shop as digital marketplaces are open all day, every day, throughout the year. However, trust has remained one of the most popular issues that leads to the ineffective use of digital marketplaces.
Because consumers play the main role for any business transactions, their trust contributes to the reduction of uncertainty and complexity of any transactions and relationships involving digital marketplaces. When customers show their trust to the brand and the company, they will show willingness in any transactions, eventually creating a smooth business transaction. Likewise, trust develops not only positive attitude towards suppliers but brings in customer loyalties (Schurr and Ozanne, 1985). Furthermore, a world of abundance for consumers is just another world of rivals for brands. When a particular brand is viewed as trustworthy, it has the added advantage to succeed as opposed to its competitors (Reast, 2005).
Despite the increasing number of Internet users who spend their time with online shopping, companies should stay committed to Internet branding by considering the consumer’s perception of brand trust online. Ha (2004) defines brand trust as the trust possessed among the customers in a particular brand. In this era of e-commerce, online brand trust is considered as one essential component that spurs online purchases and more consumers are becoming aware of its importance (Quelch and Klein, 1996). When consumers put their trust in a particular brand, they will not be reluctant to spend a premium price not only for the brand itself but its brand extension while carrying on being loyal. Furthermore, when customers view a brand as trustworthy, they would not mind spending their time, sharing feedbacks regarding their behavior, tastes and preferences which would allow the brand to develop.
For businesses to remain strong in the game in the long run, there are several aspects that influence online brand trust which comprise of website factors and consumer factors. Sultan et al. (2002) identifies website factors such as navigation, advice, no error, fulfillment, community, privacy and security, trust seals and brand presentation are responsible in developing consumer’s trust. On the other hand, the study shows that trust is contributed by consumer factors such as self-confidence, past behavior, online shopping experience as well as entertainment experience. Lee and Turban (2001) also agree that the declining of online shopping activity is the result of the lacking of consumer trust.
Salo and Karjaluoto (2007) suggest that internal factors namely consumer characteristics, previous experience with digital marketplaces, reputation, website quality and non-government association are likely related to online trust. As for external factors, they conclude that the product or service characteristics, the distinctive markets, cultures and countries act as the driving factors to the level of trust among consumers. Also, Srivinasan (2004) concludes that brand trust is greatly affected by word of mouth, positive online shopping experience and quality of information. In Malaysia, a recent study involving studying online brand trust in online ticketing determines word of mouth, online experience, quality information and brand reputation as the factors (Alam and Yasin, 2010).
To make digital marketplaces fairer, it is not an easy task and Rome was not built in a day. As a developing country, it is important for online businesses to be prepared with the new challenges in building consumer online brand trust. They should execute effective plans and consider numerous factors such as demographic variables based on the previous studies. These online businesses must acquire an in-depth knowledge of factors contributing to online brand trust.
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