Trust production and privacy concerns on the Internet

Several key mechanisms that can help increase customers' trust of e-commerce and decrease privacy concerns are examined, including characteristic-based, transaction process- based, and institution-based trust production.

Abstract

Trust plays a key role in the electronic market that involves high uncertainty and lack of legal protection. Building trust online is proposed as a solution to consumers' privacy concerns. Drawing from relationship marketing and social exchange theory, this study examined several key mechanisms that can help increase customers' trust of e-commerce and decrease privacy concerns. These mechanisms include characteristic-based (e.g., community), transaction process-based (e.g., repeated purchases), and institution-based trust production (e.g., digital certificate).