Creating Trust Online Farrokh Alemi Ph D falemigmu

Creating Trust Online Farrokh Alemi, Ph. D. falemi@gmu. edu 703 993 4226 September 12, 2004

What Is Trust? Rely on, bank on, depend on, confide in, count on, have confidence in, be sure about, have faith n Baier (1992): “Trusting others does not only mean that they are dependable but also that they have goodwill. ” n Glasser (1994): In e-commerce impartial goodwill is assumed. Partial goodwill (friendship and love) is not needed. n

Role of Information in Trust

Cognitive Confirmation Bias n Tendency refute it to confirm one’s belief & not – First impressions matter – Reputation matters n Easy to lose trust – Slow to build – One clear instant is enough to break the trust

Trust in Machines n Possibility to intervene if initial assessment is negative n Sense of control over machines n User interface (reduce complexity, reduce uncertainty, external resources, help logical inferences, social processes -people claiming the system can be trusted)

Trust in E-commerce n Content design n Structure design corresponding to clients’ n Navigation design reducing steps n Graphic design affecting feeling of the site – Images that are 3 D, dynamic and covers half the screen size – Colors that have cool tone Kim 1997

Trust in E-commerce n Consumers risk taking attributes & potential benefits matter n Observablity of other party matters n Ease of use n Real world feel n Tailoring n Amateurism reduces trust n Commercial implications reduces trust

Trust in E-commerce n Cheskin Research and Studios – Brand (reputation of the company) – Navigation – Fulfillment – Presentation – Technology (encryption) – Security/privacy seals – Objective reviews

Variables You Have Control Over n You are not god. Trust is not something you can directly manipulate. n You can take several steps to improve chances that customers will trust you. – Static steps. – Dynamic steps.

Static Steps What Can I Do With My Web Page Presentation to Reassure the Customer?

What Will Increase My Trust 1. 2. 3. 4. 5. 6. Is the industry reputable? Is the company well known? Does the site explain the potential risks that I face at the site? Is is it for me? (Or in other words does the site explain who it is not intended for) Does it explain how to recognize quality in similar services? Does the site provide only information or does it also provide emotional encouragement?

What Will Increase My Trust? 7. 8. 9. 10. 11. Does the site has as its goal to teach skills and resources that will minimize my dependence on others, including the site? Is it easy to understand navigate the site? Is there a legal promise to keep information private? Is there access to people who have used the site? Has an independent group of people evaluated the impact of the site on patient outcomes?

What Will Increase My Trust at A Site 12. 13. 14. 15. Do consumers have access to complaints filed against the company? Is the source of information clearly given? Is the source a trusted authority? Is the recency of the information clearly given? Are the sponsors and advertisers at the site clearly specified?

What Will Increase My Trust? Is it clear what are the goals of the site? Including what are not the goals that might be assumed. 17. Does the site explain what external recourse I have if the product is misleading or deceptive? 18. Does the site explain whether information provided by me is shared with others? Is there a formal consent required? 16.

What Will Increase My Trust? Is there a commitment to continue with the site and services and does the organization have the resources to do so? 20. Is there an ongoing process of improving the site? 19.

Dynamic Steps What Will Increase My Trust in the Site Over Time?

Little Data n Little is known about how trust is built over time n One place we can learn from is how trust is built in face to face relationships

Trust in Romantic Relationships n Predictability – Expectations about other party’s behavior § § § n Time Restraints Consistency of behavior Dependability – Confidence in another person’s good will § Generalization from individual actions to the person n Faith – Trust not based on experience

What helps? n Physical proximity facilitates trust n Social interaction facilitates trust – Milgram (1963) experiments n Familiarity matters

Trust in Business Relationships n Calculative process n Prediction process n Capability process n Intentionality process n Transference process – Cost & benefits, size, reputation, tailoring, information sharing & length of relationship – Experience with, knowledge about the party – Means to stay the course – Motives for the other party, impartial good will – Do third party’s trust the other party

Trust Over Time First meeting Face to face Limited exchange Sharing of More information exchanges Sharing secrets Close friendship

Trust Over Time Face to face Privileged Private activities and treatment language develops Referrals to Standing up for friends others Rituals Historical events recalled and exaggerated

Trust Over Time Face to face Online First meeting Limited exchange Sharing of information More exchanges Only contact information collected Each contact leads to more information Private information collected and provided Sharing secrets Close friendship

Trust Over Time Privileged treatment Referrals to others Rituals Face to face Online Private activities and language develops Standing up for friends VIP treatment Historical events recalled and exaggerated Customer referral and advice History reviewed

Take Home Lesson n Trust is built over time through trial and errors n One to one marketing is one way this is done