Social Media and Trust – Influence on e-Tailers

Abstract

E-commerce is growing at high rates, hence quite a lot of retailers are appearing in the Internet, trying to make a difference in the global market. Moreover, the presence of many companies in social media platforms and the development of virtual communities around the retailer corporate brand, are encouraging the sharing of reviews and experiences between consumers, creating higher levels of retailer awareness and a perceived image for online stores that is shared by consumers who access social networks. In addition, online word of mouth has an influence on the trust that consumers place in a virtual store, something that is increasingly important for earning a competitive edge. This article discusses the relationship between the retailers’ social media activities and the process for building trust through awareness, the perceived image and quality of the online service as mediating variables. For this, a survey of 301 consumers was conducted using a self-administered online questionnaire. The findings of the structural equation model showed evidence of the effect of social media on awareness and perceived image of the store, finding no evidence of any influence on perceived quality of service. Likewise, evidence of the relationship between online store image and quality of service in retailer trust was also found.