How Can E-Vendors Create Trust in B2C and C2C Contexts?

Abstract

One of the most important and the most difficult challenges in the context of an online as opposed to an offline purchase is how to generate consumer trust. It is likely that the signals that generate trust will differ in online C2C auctions from online B2C purchasing through other Websites. This chapter follows signaling theory and presents a model that attempts to capture the effects of Website signals and perceived risk on consumer trust and draws comparisons between C2C and B2C online contexts using multigroup analysis. Using information collected from a sample of online buyers, results show that vendors should stress the quality of information given to the client on C2C Websites, the offer of a wide variety of competitive prices, and the guarantee of meeting deadlines, whereas in the case of B2C sites there seem to be a series of factors that create trust in a balanced way.