Monday, 30 March 2009

No Trust, No Sales



The Internet is an open, global, diverse and constantly changing market channel. Online customers do not know whether their personal information will be exposed to the public or not. Chakraborty (2007) stated that trust is primarily an important issue in building and maintaining customer relationship on the web. No business transaction can be performed without trust.
Internet-based company are facing greater market competition in the 21st century. What traders can do to win the competition is to achieve a higher degree of trust and trustworthiness. By trust, Bolton et al (2008) pointed that, it is an individual’s willingness to commit to do something where the cooperation of other people is crucial to the outcome. Trustworthiness involves the individual’s capacity to deliver to others, as they expect, and in the process, creates value for the group as a whole.
Moreover, online trust has been viewed as a key differentiator that determines the success or failure of many companies conducting their business over the Internet. A website which is trusted can provide consumers with a secure and private online shopping experience. (Lauer and Deng 2007)
According to Lauer and Deng (2007), information privacy policy is believed to enhance online trust. On one hand, privacy has a strong influence n whether an individual trusts an e-commerce business. This can influence an individual’s behavioural intentions to purchase from or visit the website again, whether he or she will have positive things to say about the business, and whether he or she would recommend this website to others. Without an organizational policy governing fair use of personal information, companies face the risk that information used inappropriately by a single employee or by a single department can have negative consequences for the entire company. Conversely, using personal information fairly throughout the company can provide a source if competitive advantage by promoting flows of customers data over time that in today’s competitive global economy, are critical in support of all activities in a firm’s value chain. Companies choose to formalize their privacy conduct based o the code of fair information practices. Whenever a customer’s private information is collected, the company provides mechanisms for the customer to find out what information is in a record and how it is used. If any information obtained for one purpose will be used or made available for other purpose, the company must receive the customer’s consent. These privacy practices should help create a perception that the company adheres to a set of principles acceptable to the customer.

The distinction between trust and trustworthiness has wide-ranging consequences. Most of the arguments about trust in the contemporary literature are misplaced or simple wrong because they confuse trust with trustworthiness. For example, many scholars claim that trust is declining in our societies and more trust is better than less trust in a society. But that is trustworthiness, and not trust, which is needed in a well-functioning society. Distrust might be a rational strategy if you deal with unreliable, i.e. untrustworthy partners.
According to prior literature, trustworthiness is defined as the perception of confidence in the electronic marketer's reliability and integrity. More definitions can be describe in example as Trust is a cognitive act where someone trusts another person to do something Trustworthiness is the moral quality of someone with whom anther person interacts about doing something.

Eastlick et al. (2006) state that, trust is an essential prerequisite for electronic customer relationship building. Trust can be separated into two basic types, (Salo and Karjaluoto, 2007) namely direct trust and third-party trust. Direct trust is a trust relationship developed by the two parties themselves. Third-party trust is a trust that develops between two parties who might not know each other from before but are willing to trust each other on account of the contribution of a reliable third party. Especially in the online world, trust plays a very common important role during surfing on the internet as personal information may be needed to be exchanged beyond that required to complete a traditional transaction. Under these circumstances, it seems likely that removing the linear effects of trustworthiness would result in the absence of relationship between purchase intentions and consumer readiness to give personal information. In reality, perceptions of trustworthiness may be essential when initiating a transaction with an electronic-only marketer since without trust, no private information will be given, and no sale will be initiated.

Advice to Football club website

One of the most important factors that can make the website to be more trustful is the personal privacy security. The website’s owner should concern about the protection of consumer to ensure that they can trust and avoid unsafe when surfing the website. Krunic and Dimitrijevic suggested that regarding to support the consumer privacy; companies should put the privacy policy on their website. Also, the context of policy should be clear and easy to understand (2008). According to the internet has become popular in many kinds of business, Also the internet technology has changed rapidly. Many firms are looking for the new way to communicate and engage with their consumers. In particular, Chelsea football club, they have renovated the website by placing more content and distributed it into social networks (Anon 2008). As a result, website tends to encourage internet user to be participated and engaged with them. Consequently, users need to give their personal information by registration. Therefore, to ensure the security of consumer personal information, the websites should have a firm privacy policy to push the trustworthiness for consumers.



Reference

Anon. (2008) 'Chelsea Fc Uses Web to Drive Interaction.' New Media Age 3-3

Bolton, G., Loebecke, C., and Ockenfels, A. (2008) ‘Does Competition Promote Trust and Trustworthiness in Online Trading? An Experimental Study.’ Journal of Management Information Systems 25, (2) 145-169

Chakraborty, C. and Chakraborty, D. (2007) ‘Fuzzy rule base for consumer trustworthiness in Internet Marketing: An interactive fuzzy rule classification approach.’ Intelligent Data Analysis 11, (4) 339-353

Eastlick, M.A., Lotz, S.L. and Warrington, P. (2006), “Understanding online B-to-C relationships:an integrated model of privacy concerns, trust, and commitment”, Journal of Business Research, Vol. 59 No. 8, pp. 877-86.

Harridge-March,S. (2006) “can the building of trust overcome consumer perceived risk online?” Marketing Intelligence & Planning Journal, Vol 24, 7 pp.746-761

Jari Salo and Heikki Karjaluoto(2007) “A conceptual model of trust in the online environment” Online Information Review, Vol. 31 Issue: 5

Krunic, T. and Ruzic- Dimitrijevic, L. (2008) 'Online Privacy Analysis and Hints for Its Improvement.' Issues in Informing Science & Information Technology 5, 177-196

Lauer, T. W., and Deng, X. (2007) ‘Building online trust through privacy practices.’ International Journal of Information Security 6, (5) 323-331

1 comment:

  1. Hi, it is really well described about trust and trustworthiness. However, do u think Chelsea football club website trustworthy enough? A part form social network involvement, do u have any suggestion about their layout ?

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