Creating Trust Online

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Creating Trust Online

• Farrokh Alemi, Ph.D.
• falemi_at_gmu.edu
• 703 993 4226
• September 12, 2004

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What Is Trust?

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

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Role of Information in Trust
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Cognitive Confirmation Bias

• Tendency to confirm ones belief not refute it
• First impressions matter
• Reputation matters
• Easy to lose trust
• Slow to build
• One clear instant is enough to break the trust

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Trust in Machines

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

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Trust in E-commerce

• Content design
• Structure design corresponding to clients
• Navigation design reducing steps
• Graphic design affecting feeling of the site
• Images that are 3D, dynamic and covers half the
  screen size
• Colors that have cool tone

Kim 1997
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Trust in E-commerce

• Consumers risk taking attributes potential
  benefits matter
• Observablity of other party matters
• Ease of use
• Real world feel
• Tailoring
• Amateurism reduces trust
• Commercial implications reduces trust

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Trust in E-commerce

• Cheskin Research and Studios
• Brand (reputation of the company)
• Navigation
• Fulfillment
• Presentation
• Technology (encryption)
• Security/privacy seals
• Objective reviews

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Variables You Have Control Over

• You are not god. Trust is not something you can
  directly manipulate.
• You can take several steps to improve chances
  that customers will trust you.
• Static steps.
• Dynamic steps.

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Static Steps

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

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What Will Increase My Trust

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

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What Will Increase My Trust?

1. Does the site has as its goal to teach skills and
   resources that will minimize my dependence on
   others, including the site?
2. Is it easy to understand and navigate the site?
3. Is there a legal promise to keep information
   private?
4. Is there access to people who have used the site?
5. Has an independent group of people evaluated the
   impact of the site on patient outcomes?

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What Will Increase My Trust at A Site

1. Do consumers have access to complaints filed
   against the company?
2. Is the source of information clearly given? Is
   the source a trusted authority?
3. Is the recency of the information clearly given?
4. Are the sponsors and advertisers at the site
   clearly specified?

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What Will Increase My Trust?

1. Is it clear what are the goals of the site?
   Including what are not the goals that might be
   assumed.
2. Does the site explain what external recourse I
   have if the product is misleading or deceptive?
3. Does the site explain whether information
   provided by me is shared with others? Is there a
   formal consent required?

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What Will Increase My Trust?

1. Is there a commitment to continue with the site
   and services and does the organization have the
   resources to do so?
2. Is there an ongoing process of improving the
   site?

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Dynamic Steps

• What Will Increase My Trust in the Site Over Time?

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Little Data

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

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Trust in Romantic Relationships

• Predictability
• Expectations about other partys behavior
• Time
• Restraints
• Consistency of behavior
• Dependability
• Confidence in another persons good will
• Generalization from individual actions to the
  person
• Faith
• Trust not based on experience

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What helps?

• Physical proximity facilitates trust
• Social interaction facilitates trust
• Milgram (1963) experiments
• Familiarity matters

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Trust in Business Relationships

• Calculative process
• Cost benefits, size, reputation, tailoring,
  information sharing length of relationship
• Prediction process
• Experience with, knowledge about the party
• Capability process
• Means to stay the course
• Intentionality process
• Motives for the other party, impartial good will
• Transference process
• Do third partys trust the other party

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Trust Over Time
Face to face
First meeting Limited exchange
Sharing of information More exchanges
Sharing secrets Close friendship
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Trust Over Time
Face to face
Privileged treatment Private activities and language develops
Referrals to others Standing up for friends
Rituals Historical events recalled and exaggerated
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Trust Over Time
Face to face Online
First meeting Limited exchange Only contact information collected
Sharing of information More exchanges Each contact leads to more information
Sharing secrets Close friendship Private information collected and provided
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Trust Over Time
Face to face Online
Privileged treatment Private activities and language develops VIP treatment
Referrals to others Standing up for friends Customer referral and advice
Rituals Historical events recalled and exaggerated History reviewed
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Take Home Lesson

• Trust is built over time through trial and errors
  
• One to one marketing is one way this is done