e-avatar

Internet marketing has become a pivotal tool to sell products and services (Allbusiness 2010). Maintaining good relationships with stakeholders is believed to play a key role in successful business strategy (Mayer and Tomilson 2009). Hence, with the growth of internet marketing, the mechanism to achieve success and surpassing competitors for long term success is to build consumer “Trust” (Angriawan and Thakur 2008, Keitch 2009). Angriawan and Thakur (2008) weighted that, website usability, expected performance of the product, online security and privacy constitute 70% of the online trust. According to Kim and Bensabat (2010), the most important goal of internet marketing is to create customer “trust” A survey conducted on the online buyers found that consumers consider online trust as one of the top factors when they select their online vendors (Jiang, Jones and Javie 2008). Hence online trust is one of the most important inevitable concerns in the e-commerce.

According to Kim and Bensabat (2010) trust is defined as “beliefs regarding the ability, integrity, and benevolence of the online merchant”. Morgan and Hunt (1994) believe trust is developed when a party gains confidence in an exchanging party believing in its reliability and integrity. Culture differences influence the degree of trust sort e.g. Americans are more inclined towards risk taking and trust than Japan.

There are several reasons why trust online is not easily acquired. Hanai and Oguchi's (2009) definition of ‘perceived risk,’ explains how it is the risk that consumers subjectively perceive of products; classifying it into financial risk, functional risk, physical risks, psychological risks and social risks.


Explaining how customers tend to search for more information when price is relatively high and how under high levels of trust, customers are willing to pay a higher price premium to a store for an expensive product than for an inexpensive product (Kim and Benrasat 2010). Consequently consumers are fearful of online shopping for branded products (a product belonging to a high-class) of its uncertainty and unreliability (Hanai and Oguchi 2009).

Several online shops are currently confronted with the difficulty of transmitting trust warranting properties; properties that induce trust, to the consumers. Unlike online shops, real shops win trust by responding to consumers’ problems and worries immediately and properly, whereas time and spatial discrepancies are encountered on online transaction (Hanai and Oguchi 2009). These limitations include the inability for customers to feel the product and the ease of immediate customer service.

Martin and Camerero’s (2008) study suggests that security amongst all has the strongest influence on consumer trust. They believe that service quality, refund and warranty directly influence consumers’ trust where as the website characteristics have an indirect influence. Moreover they found out that past online shopping experience is the main determinant of online trust. Research reveals that consumer satisfaction with an online shop is by how it enhances purchasing and browsing behaviour and selection, web design and maintenance are also important factors.

Trust formation in a mediated transaction is important and it occurs when the customer’s intention to buy a product matches the shops intention to sell. This is reflected by the information transmitted by the shop whereby reliability is expected and which could initiate purchase (Hanai and Oguchi 2009). There is a lot of criticism on the Trust-assuring arguments that are displayed or provided on a store’s Web site arguing that these may come from different sources, as non objective viewpoints.

The research results suggest that a third party’s assurance was more effective in increasing the likelihood of a purchase than a store’s self-proclaimed assurance, on the other hand, a store’s self-proclaimed assurance were more effective than having no assurance (Nöteberg, Christiaanse and Wallage 2003).

There is the exception of those individuals who do not have to rely only on an independent third-party source to form high trust beliefs about the store. When customers purchase a high-price product, they seem to form trusting beliefs by scrutinizing argument content rather than by depending on heuristic cues (e.g., an independent party’s opinion) (Kim and Benbasat 2010). Although recent researchers emphasising the role of word of mouth in trust formation (Hanai and Oguchi 2009), Mayer et al.’s model for the feedback circle suggests that the outcomes of trusting the trustee will determine if a positive relationship or if a negative the relationship will formed (Mayer and Tomilson 2009).

One of the ways to increase consumer trust online is to provide trust-assuring arguments, which are “statements of a claim and its supporting statements used in an Internet store to address trust-related concerns” (Kim and Benbasat 2006). As proposed by Keitch (2009), in order to overcome these challenges, marketers will have to build two essential components into their campaign, which are charm (“the deployment of novelty”) and reassurance. Trust assurance can be provided by self proclamation e.g. ‘safe shopping our security guarantee’ or assurance, e.g. Hacker Safe. Examples of internet marketers who provide such assurances are Ebay.com and Amazon.com (Kim and Bensabat 2010). Third party assurances also referred to as Trustmarks such as TRUSTe and BBBOnLine create a positive influence and have more credibility than a consumers report magazine (Kim and Bensabat 2010)

Utilising Toulmin’s model of argumentation to make online trust-assuring arguments persuasive could be useful for online businesses.


It was found that trust-assuring arguments that included claim plus data and backing (hereafter claim-data-backing) effectively increased consumers’ trusting beliefs, while trust-assuring arguments that consisted of claim only (hereafter claim-only) did not increase consumers’ trusting beliefs. Claim is a conclusion of an argument, data are grounds of a claim, and backings are reasons one should accept (Kim and Benbasat 2010).

There are several ways of reducing distrust online. Consumers engage in information search; seek, collect and examine this information, because of products perceived risks. Thus online businesses are encouraged to supply specific and useful information e.g. payment and return information, in order to heighten reliability (Hanai and Oguchi 2009). Indeed, shops have attempted to convey clear and trustworthy information like revealing affiliations with reliable organisations.

In light of these justifications digital marketers will have to restore their consumer trust as they have to face the challenge of competing in an increasingly crowded media space (Keitch 2010). Internet tracking is useful in addressing shortcomings and are especially important for any industry especially online business (Keitch 2009)

Researchers have suggested that trust forms a strong basis for building a prolonged close, supportive and industrious relationship (Mayer and Tomilson 2009). Researchers have suggested that third party certification logos should be displayed on websites because it has a direct positive impact of safe shopping in the consumers’ mind and builds up consumer trust towards the organization (Jiang, Jones and Javie 2008). Also, business organizations should deliver on quality online and offline in order to generate the consumers’ online trust.

As internet marketing continues to grow, trust also has to evolve because the predominant factor in internet marketing is trust (Kim and Bensabat 2010). Therefore, online marketers should increase the trust levels among customers to gain a competitive advantage.


REFERENCES

Allbusiness (2010) The impact of internet marketing [online] available from [15 March 2010]

Angriawan, A. and Thakur, R. (2008) ‘A Parsimonious Model of the Antecedents and Consequence of Online Trust: An Uncertainty Perspective’. Journal of Internet Commerce 7 (1), 74 – 94.

Ba, S. and Pavlou, P. A. (2002) 'Evidence of the effect of trust building technology in electronic markets: Price premiums and buyer behavior'. MIS Quarterly 26(3), 243–268

Hanain, T. and Oguchi, T (2009) ‘How Do Consumers Perceive The Reliability of Online Shops?’. Journal of Psychosocial Research on Cyberspace 3(2), article 6

Jiang, P., Jones, D. B. and Javie, S.(2008) ‘How Third-Party Certification Programs Relate to Consumer Trust in Online Transactions: An Exploratory Study’. Psychology and Marketing 25 (9), 839 – 858.

Keitch, R. (2009) ‘Digital marketers need to reassure consumers to regain their trust’ New Media Age 1/3, 15.

Kim, D. and Benbasat, I. (2010) ‘Designs for Effective Implementation of Trust Assurances in Internet Stores’. Communications of ACM 53 (2), 121 – 126.

Kim, D. and Benbasat, I.(2006) 'The effects of trust-assuring arguments on consumer trust in Internet stores: Application of Toulmin’s model of argumentation'. Information Systems Research 17(3), 286–300.

Nöteberg, A., Christiaanse, E. and Wallage, P. (2003) 'Consumer trust in electronic channels'. e‑Service Journal 2(2) 46–67

Martín, S. S. and Camarero, C.(2008) ‘Consumer Trust to a Web Site: Moderating Effect of Attitudes toward Online Shopping’. Cyber Psychology and Behavior 11 (5), 549 – 554

Mayer, R. C. and Tomilson, E. C.(2009) ‘The Role of Casual Attribution Dimensions In Trust Repair’. Academy of Management Review 34 (1), 85 – 104.

Morgan, R. M. and Hunt, S. D.(1994) ‘The Commitment – Trust Theory of Relationship Marketing’. Journal of Marketing 58 (3), 20-38.

The internet since its birth has impacted the whole world especially the peoples’ lives at such an unprecedented level that some might believe that this online revolution is even more profound than the Industrial Revolution (Xiaolei 2007). This speedy revolution has raised so many unanswered questions on if a new species of humans are developing; from homosapien to homointerneticus? Thus, we completely agree with Dr. Krostoski’s report on Virtual Revolution: Homointerneticus. (documentary film on BBC) and would like to present our views in support of it.

Internet possesses enormous power and provides access to vast amount of information and facilitates like networking between people around the world. This technology can be compared to the electricity, telephone and the automobile inventions that have made a mark within society, transforming society, affecting culture, politics and businesses (Gates 2000).


The younger generation today is considered to be grown and brought up within a digital world since their birth and internet has become an indispensable for them (Cheon and John 2005). As shown in the documentary, 62% of South Korean 3-5 years old kids use internet for over 7 hours per week regularly. Also in the US , 9.5% of the total active online users (16 million approx.) were children aged 2-11 as on May 2009 (Nielsenwire 2009). Not only the developed but the developing nations are also not left behind in this revolutionary race. Chinese online user number surpassed that of US with its largest proportion (39%) comprising of the school children (NWCCW 2009) hence internet addiction is becoming a serious problem amongst the Chinese younger generation (Cao and Su 2006).


One key point is the impact of the internet on the web generation which has been clearly shown like a double edge sword effects (both positive and negative) in the documentary. It is very true considering the numerous growth opportunities which the web offers to the children with benefits like socialization and communication across culture and boundaries; interpersonal and creativity development; and educational and academic support through vast information access (Gross 2004, Jackson et al., 2006, Valkenburg and Peter 2007 cited in Mishna, Saini and Solomon 2009). On the other hand, the negative effects include physical and mental impact (due to information fatigue); cognitive (inability to differentiate real and virtual world); and social development (less interaction with real people and identity confusion) (Cordes and Miller 2000 cited in Cheon and John 2005).


An important revelation is the extent to which virtual interaction reflects who we are. Social networks are a growing phenomenon with individuals and companies investing enormous time and money online (Gates 2000). Theodore V. outlined the network effect as a beneficial system; a self sustaining and self fulfilling system (Krostoski 2010); a system present within the www (Gates 2000). Social bonding is defined as a personal relationship usually between 2 individuals (Krostoski 2010) but the internet is merely a gateway for bonding and it is becoming less important in peoples’ lives (Farmery 2010). Skeptics like neuroscientists say a child’s sense of reality is distorted as senses triumph over meaning (Krostoski 2010). The study of a linear and associative mindset reveals how the internet has made us lazy with the presence of ‘hyperlinks’ and readily available information, supported by David Nicholas views on the importance of reading books because they explore vast information than just reading an extract (Krostoski 2010). These views are in contrast to those of Gates (2000) who believes the internet amplifies human potential.

Like predicted during the 1960’s, the technological age did indeed bring in a massive change and like stated by Bill Gates in the year 2000, there has been profound effects of the internet on the way we work live and learn.
The internet is described as a positive development creating collaboration and is expected to develop further. However, being better informed doesn’t necessarily mean better decisions. More so, the dangers of the internet like security issues make the web appear less mind controlling and more of a reflection of the real world. Hence, internet may or may not isolate people from the real world depending upon how they use it.


Reference

Cao, F., and Su, L. (2006) ‘Internet addiction among Chinese adolescents: prevalence and psychological features’. Child: Care, Health and Development [online] 33 (3), 275-281. Available from < http://www.encognitive.com/files/Internet%20addiction%20among%20Chinese%20adolescents--%20prevalence%20and%20psychological%20features.pdf> [1 March 2010]

Cheon and John, H. (2005) ‘Children’s exposure to negative internet content: effects of family context’. Journal of Broadcasting and Electronic media [online] available from < http://www.allbusiness.com/technology/internet-technology/867440-1.html > [3 March 2010]

Farmery, A. (2010) Internet social bonding 5 February 2009 [online] available from [03 March 2010]

Gates, B. (2000) Shaping the internet age [online] available from [03 March 2010]

Gov (2010) Internet dangers for teenagers [online] available from [03 March 2010]

Krostoski, (2010) ‘The virtual revolution: homointerneticus’. BBC [online] available from < http://www.bbc.co.uk/iplayer/episode/b00r3qhg/The_Virtual_Revolution_Homo_Interneticus/ > [28 March 2010]

Mishna, F., Saini, M., and Solomon, S. (2009) ‘Ongoing and Online: Children and youth’s perceptions of cyber bullying’. Children and Youth Services Review [online] 31, 1222-1228. Available from < http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V98-4W91PR7-2&_user=2563821&_coverDate=12%2F31%2F2009&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_acct=C000057807&_version=1&_urlVersion=0&_userid=2563821&md5=be6b948477c27951a6b63eb8fcf7e2a0 > [3 March 2010]

Nielsen Wire (2009) Growing up and growing fast: kids 2-11 spending more time online [online] available from < http://blog.nielsen.com/nielsenwire/online_mobile/growing-up-and-growing-fast-kids-2-11-spending-more-time-online/ > [3 March 2010]

NWCCW (2009) Gender ratio of netizens becomes more balanced [online] available from [3 March 2010]

Xiaolei, J. (2007) ‘Caught in Net: Looking back on the internet revolution’. Beijing Review [online] 50 (37), 18-20. Available from < http://web.ebscohost.com/ehost/pdf?vid=2&hid=5&sid=528f2547-ec95-4f94-b23a-3c25311053c1%40sessionmgr4 > [1 March 2010]