Building Effective Online Marketplaces with Institution-Based Trust
University of California, Riverside · Drexel University
Abstract
Institution-based trust is a buyer’s perception that effective third-party institutional mechanisms are in place to facilitate transaction success. This paper integrates sociological and economic theories about institution-based trust to propose that the perceived effectiveness of three IT-enabled institutional mechanisms–specifically feedback mechanisms, third-party escrow services, and credit card guarantees–engender buyer trust in the community of online auction sellers. Trust in the marketplace intermediary that provides the overarching institutional context also builds buyer’s trust in the community of sellers. In addition, buyers’ trust in the community of sellers (as a group) facilitates online…
Citation impact
- FWCI
- 128.29
- Percentile
- 100%
- References
- 94
Authors
2Topics & keywords
- Escrow
- Institution
- Database transaction
- Business
- Context (archaeology)
- Space (punctuation)
- Transaction cost
- Internet privacy