E-commerce Sites: What Makes Them Seem Trustworthy? Barrie Trinkle COM 586

2 Online Buying Still accounts for only 6 percent of retail dollars (Forrester press release, 5/14/2007). Still growing at double-digit rates; not yet saturated, but growth is slowing. E-tailers must now attract customers who are deliberate, skeptical, and traditional--not innovators or early adopters. (On the plus side, many have already used the web.) Online consumers are generally seeking low price, added convenience, and product novelty (Alexander et al.)

3 Common E-consumer Fears Credit card fraud Information theft Paying for nothing Hidden fees Inventory misinformation Shipping mistakes Shoddy merchandise Problems with returns Spam How can e-commerce sites allay these fears?

4 How Do Consumers Learn to Trust a Site? Visual examination of credibility markers Use of big name/big sales volume sites Word of mouth Offline presence and reputation Kicking the tires – starting with small purchases (Alexander et al.)

5 Web 1.0 Credibility Markers (Burke) Clearly stated fees and policies Security certification logos and symbols Ease of use Professional-looking website design Fast, reliable servers Fresh, well-edited content Cohesive brand communication Obvious contact links Comprehensive and accurate product and inventory information Customer reviews Excellent customer service

6 The Web 2.0 Consumer Asks: Are people like me buying here?

7 Web 2.0 Trust Tools Podcasts Product blogs How-to video Advanced imaging features Decision tools Real-time sales/inventory data (only 6 left!)

8 Social Proof Some sites use traffic or sales information strategically, to exploit the power of the herd

9 The Future of E-tailing E-tailing 1.0 has replicated the experience of catalog shopping E-tailing 2.0 will replicate afternoon shopping trips with friends (Hemp) Features: avatar clerks, virtual try-ons, increased level of interaction with objects and people

10 References Alexander, Blair, Lorraine Friend, Beth Godwin, and Patrycja Babis. "Learning to Trust E-Tailers: Strategies for Consumers." Journal of Research for Consumers 10 (2006): 1-9. Retrieved 12 May 2007, ProQuest. Burke, Ken. "Trust Us." Multichannel Merchant (2006): Retrieved 12 May 2007, ProQuest. Hemp, Paul. "Are You Ready for E-tailing 2.0?" Harvard Business Review (2006): 28. Retrieved 14 May 2007, EBSCO.