Abstract
PurposeThe potential for e-commerce is limited by a trust deficit when traders do not interact in a physical, bricks-and-mortar context. The theory of information richness posits that equivocal interactions, such as ones requiring trust, can be facilitated through communication media that transmit multiple cues interactively. This study aims to examine the potential of information-rich virtual worlds to reduce this trust deficit compared with more traditional Web-based e-tailing environments.Design/methodology/approachRather than focusing on stated intentions, the authors adopt an experimental approach to measure behaviour. Participants receive performance-related financial incentives to perform trust games in different information-rich treatments that represent three retail environments: a physical environment representing bricks-and-mortar trade, an electronic environment representing Web-based online retailing and a virtual environment representing virtual world retail.FindingsThe authors find that the two dimensions of trust significantly differ between the treatments. In particular, as hypothesised, both trustingness and trustworthiness are higher in the virtual than in the electronic environment. However, contrary to the hypotheses, physical trade is not associated with greater trust than virtual trade.Research limitations/implicationsThe authors extend previous research by demonstrating how the information richness of the virtual world interface can promote e-commerce by deepening trust between trading partners. This research also complements existing work that approaches product and service interfaces through the lens of servicescapes.Practical implicationsThe findings also contribute towards the development of services marketing practice and the design of e-commerce environments.Originality/valueMuch of the work in this space considers purchase intentions and attitudes around trust, whereas this study looks at actual trust behaviour in the virtual space.
Highlights
Electronic commerce (e-commerce) has transformed how business is conducted, how business partners interact and how information is shared between them (Agarwal & Wu, 2015)
This marriage may shed light on commitment-trust theory and responds to calls for work considering service contexts to refine these foundational theories and to build service knowledge (Ostrom et al, 2015). These observations raise the issue of how electronic retail spaces should be designed to minimise loss of trust compared to physical retail environments. We address this g issue through an experiment based on the theory of information richness which objectively categorises different communication media according to their capacity to carry information and promote shared meaning and understanding when ambiguity exists
We find that virtual worlds can be highly effective in instilling trust, which we attribute to their relative information richness
Summary
Electronic commerce (e-commerce) has transformed how business is conducted, how business partners interact and how information is shared between them (Agarwal & Wu, 2015). 12) and their impact on service innovation has been noted (Barrett, Davidson, Prabhu, & Vargo, 2015). Despite their promise, electronic trading environments bear risks in the much greater scope for anonymity. The associated signals that moderate trade in traditional environments are not present in electronic shopping environments. Online shopping is characterised by the lack of trust To reduce consumers’ inherent distrust of websites, firms need to develop ways to overcome the lack of physical cues that consumers use to assess quality, safety or security To reduce consumers’ inherent distrust of websites, firms need to develop ways to overcome the lack of physical cues that consumers use to assess quality, safety or security (Beatty, Reay, Dick, & Miller, 2011, p. 2)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
