Building Consumer Trust Online: How merchants can win back lost consumer trust in the interests of e-commerce sales.

Building Consumer Trust Online: How merchants can win back lost consumer trust in the interests of e-commerce sales.

April 1999/Vol. 42, No. 4 | Donna L. Hoffman, Thomas P. Novak, and Marcos Peralta
The article discusses the challenges faced by merchants in regaining consumer trust and increasing e-commerce sales. Despite the significant growth in online shopping, consumer revenues and corporate profits remain low due to various barriers, including the lack of secure payment technologies and profitable business models. However, the primary barrier is consumers' fear of sharing personal data with web providers. Research shows that 87% of web users want complete control over their demographic information, and over 71% support new laws to protect their privacy. Consumers are reluctant to provide personal data due to a lack of trust and concerns about how their information will be used. While many consumers are willing to share data if they understand its use, most websites do not provide clear information about data usage, leading to a cycle of mistrust. The article suggests that short-term solutions, such as offering anonymous or pseudonymous transactions, can help build trust and stimulate online commerce. However, long-term success requires a shift towards more cooperative and transparent interactions between businesses and consumers, with a focus on earning consumer trust through informed consent and data ownership rights.The article discusses the challenges faced by merchants in regaining consumer trust and increasing e-commerce sales. Despite the significant growth in online shopping, consumer revenues and corporate profits remain low due to various barriers, including the lack of secure payment technologies and profitable business models. However, the primary barrier is consumers' fear of sharing personal data with web providers. Research shows that 87% of web users want complete control over their demographic information, and over 71% support new laws to protect their privacy. Consumers are reluctant to provide personal data due to a lack of trust and concerns about how their information will be used. While many consumers are willing to share data if they understand its use, most websites do not provide clear information about data usage, leading to a cycle of mistrust. The article suggests that short-term solutions, such as offering anonymous or pseudonymous transactions, can help build trust and stimulate online commerce. However, long-term success requires a shift towards more cooperative and transparent interactions between businesses and consumers, with a focus on earning consumer trust through informed consent and data ownership rights.
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[slides and audio] Building consumer trust online