Initial online trust formation: the role of web assurance & location

S. Zoe Chu graduated with a Master of Commerce and Management in 2002 from Lincoln University, New Zealand. She has always been interested in the world of e-commerce and consumers behaviour in the Worldwide Web.

The advent of electronic commerce has revolutionised the way consumers purchase products and services. Online businesses are growing rapidly to tap into the potential demand of market consumers. Nevertheless, the full potential of business-to-consumer (B2C) e-commerce may not be fully realised with many consumers expressing reservations about engaging in e-commerce transactions. Concerns over privacy and security issues continue to steer consumers away from making Internet purchases. This has caused consumers to lose trust in online businesses. Consumers lack of trust in online transactions has created a need for web assurance services to bridge the trust gap and re-establish consumers faith in online businesses. This study examines whether web assurance services are effective as trust-building mechanisms which encourage consumers to engage in e-commerce transactions. The presence of such a seal should help create a greater perception of trust and facilitate consumers willingness to purchase online.