The effects of online trust-building mechanisms on trust and repurchase intentions: An empirical study on eBay

Abstract

Purpose

The purpose of this paper is to extend the current literature on trust-building mechanisms in e-commerce and provide a comprehensive view of how the perceived usefulness of three types of online trust-building mechanisms affects trust in the e-seller and trust in the e-marketplace, which, in turn, shape the customer repurchase intentions.

Design/methodology/approach

Survey data were collected from 193 eBay customers to test the proposed research model.

Findings

The study found that the perceived usefulness of seller-based mechanism affects both trust in the e-marketplace and trust in the e-seller. Meanwhile, the perceived usefulness of experience-based mechanism only influences trust in the e-seller and the perceived usefulness of institution-based mechanism (IBM) only affects trust in the e-marketplace. Furthermore, this study found that trust in the e-marketplace can substitute for the effect of trust in the e-seller on customer repurchase intentions.

Practical implications

In an e-marketplace like eBay that does not involve much in the transaction process, e-sellers should invest more resources in building attractive and informative websites about their products and organizations. Moreover, e-marketplace owners should provide guidelines and enforce policies to improve the perceived usefulness of an IBM to increase an e-marketplace’s credibility. While such e-marketplace credibility does not affect customer repurchase intentions directly, it reduces customer concerns about individual e-sellers, which makes it easier for e-sellers to retain customers.

Originality/value

This study delineates how the perceived usefulness of three types of online trust-building mechanisms imposes different effects on trust in the e-marketplace and trust in the e-seller. Moreover, this study reveals the intertwined relationship between trust in the e-marketplace and trust in the e-seller that is different from extant studies conducted in marketplaces like Amazon.

Citation

Liu, Y. and Tang, X. (2018), "The effects of online trust-building mechanisms on trust and repurchase intentions: An empirical study on eBay", Information Technology & People, Vol. 31 No. 3, pp. 666-687. https://doi.org/10.1108/ITP-10-2016-0242