1. Creating Trust Online Farrokh Alemi, Ph.D. falemi@gmu.edu 703 993 4226 September 12, 2004

2. What Is Trust? Rely on, bank on, depend on, confide in, count on, have confidence in, be sure about, have faith 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.” 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. Glasser (1994): In e-commerce impartial goodwill is assumed. Partial goodwill (friendship and love) is not needed.

3. Role of Information in Trust

4. Cognitive Confirmation Bias Tendency to confirm one’s belief & not refute it Tendency to confirm one’s belief & not refute it –First impressions matter –Reputation matters Easy to lose trust Easy to lose trust –Slow to build –One clear instant is enough to break the trust

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

6. Trust in E-commerce Content design Content design Structure design corresponding to clients’ Structure design corresponding to clients’ Navigation design reducing steps Navigation design reducing steps Graphic design affecting feeling of the site 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

7. Trust in E-commerce Consumers risk taking attributes & potential benefits matter Consumers risk taking attributes & potential benefits matter Observablity of other party matters Observablity of other party matters Ease of use Ease of use Real world feel Real world feel Tailoring Tailoring Amateurism reduces trust Amateurism reduces trust Commercial implications reduces trust Commercial implications reduces trust

8. Trust in E-commerce Cheskin Research and Studios Cheskin Research and Studios –Brand (reputation of the company) –Navigation –Fulfillment –Presentation –Technology (encryption) –Security/privacy seals –Objective reviews

9. Variables You Have Control Over You are not god. Trust is not something you can directly manipulate. 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. You can take several steps to improve chances that customers will trust you. –Static steps. –Dynamic steps.

10. Static Steps What Can I Do With My Web Page Presentation to Reassure the Customer?

11. 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?

12. What Will Increase My Trust? 7. Does the site has as its goal to teach skills and resources that will minimize my dependence on others, including the site? 8. Is it easy to understand and navigate the site? 9. Is there a legal promise to keep information private? 10. Is there access to people who have used the site? 11. Has an independent group of people evaluated the impact of the site on patient outcomes?

13. What Will Increase My Trust at A Site 12. Do consumers have access to complaints filed against the company? 13. Is the source of information clearly given? Is the source a trusted authority? 14. Is the recency of the information clearly given? 15. Are the sponsors and advertisers at the site clearly specified?

14. What Will Increase My Trust? 16. Is it clear what are the goals of the site? Including what are not the goals that might be assumed. 17. Does the site explain what external recourse I have if the product is misleading or deceptive? 18. Does the site explain whether information provided by me is shared with others? Is there a formal consent required?

15. What Will Increase My Trust? 19. Is there a commitment to continue with the site and services and does the organization have the resources to do so? 20. Is there an ongoing process of improving the site?

16. Dynamic Steps What Will Increase My Trust in the Site Over Time?

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

18. Trust in Romantic Relationships Predictability Predictability –Expectations about other party’s behavior  Time  Restraints  Consistency of behavior Dependability Dependability –Confidence in another person’s good will  Generalization from individual actions to the person Faith Faith –Trust not based on experience

19. What helps? Physical proximity facilitates trust Physical proximity facilitates trust Social interaction facilitates trust Social interaction facilitates trust –Milgram (1963) experiments Familiarity matters Familiarity matters

20. Trust in Business Relationships Calculative process Calculative process –Cost & benefits, size, reputation, tailoring, information sharing & length of relationship Prediction process Prediction process –Experience with, knowledge about the party Capability process Capability process –Means to stay the course Intentionality process Intentionality process –Motives for the other party, impartial good will Transference process Transference process –Do third party’s trust the other party

21. Trust Over Time Face to face First meeting Limited exchange Sharing of information More exchanges Sharing secrets Close friendship

22. 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

23. 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

24. 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

25. Take Home Lesson Trust is built over time through trial and errors Trust is built over time through trial and errors One to one marketing is one way this is done One to one marketing is one way this is done