The Effects of E-Commerce Recommendation System Transparency on Consumer Trust: Exploring Parallel Multiple Mediators and a Moderator

Abstract

Recommendation systems are used in various fields of e-commerce and can bring many benefits to consumers but consumers’ trust in recommendation systems (CTRS) is lacking. Recommendation system transparency (RST) is an important factor that affects CTRS. Applying a three-layered trust model, this paper discusses the influence of RST on CTRS in the e-commerce domain, demonstrating the mediating role of perceived effectiveness and discomfort and the moderating role of consumers’ domain knowledge. We recruited 500 participants for an online hypothetical scenario experiment. The results show that consumers’ perceived effectiveness and discomfort can mediate the relationship between RST and CTRS. Specifically, RST (vs. non-transparency) leads to higher perceived effectiveness ( promoting CTRS) and lower levels of discomfort (which inhibits CTRS), in turn increasing CTRS. Domain knowledge positively moderates the positive impact of RST on perceived effectiveness, while negatively moderating the negative impact of RST on discomfort. Further, gender has a negative impact on CTRS when consumers are purchasing experience products but there is no effect when purchasing search products.