Culture and Consumer Trust in Online Businesses

The importance of consumer trust to the success of online businesses is well documented in the literature. Given the global nature of online transactions, an important question is whether trust and trust formation differ across cultures. This study compared Hong Kong and U.S. consumer trust in online businesses. Specifically, the study examined security and privacy risks related to the purchase of products as well as services. The results show that significant differences exist between consumers from the two countries regarding the perceived level of online business risks and the formation of trust via the transference process. These findings reiterate and underscore the significance of including national culture in studies of trust in e-commerce. The results also have potential implications for online businesses as well as third party certification and assurance services. IntroductIon Concern with the determinants of consumers’ willingness to engage in e-commerce has been the focus of numerous studies (e.g., George, 2004; Gefen, Karahanna, & Straub, 2003a, b; Tan & Sutherland, 2004; Jarvenpaa & Tractinsky, 2003; Pavlou, 2003; McKnight, Choudhury, & Kacmar, 2002; McKnight & Chervany, 2001; Jones, Wilikens, Morris, & Masera, 2000). For example, based on the theory of planned behavior, George (2004) finds that trustworthiness is a significant factor in the development of attitudes concerning e-commerce. Similarly, Gefen et al. (2003a, b) used the technology acceptance model (TAM) (Davis, 1989; Davis, Bagozzi, & Warshaw, 1989; Venkatesh & Davis, 2000) to examine the role of trust in consumers’ intention to use e-commerce. In a study of repeat customers, Gefen et al. (2003a) find that beliefs about structural assurances such as online seals were significant antecedents of trust, thereby contributing to intended use. In a