Transcript Trust
Trust on the Internet 2000 Conference on Emerging Issues in International Accounting J. Efrim Boritz School of Accountancy © 2000. J. E. Boritz. All rights reserved U of W Centre for Information Systems Assurance http://www.arts.uwaterloo.ca/ACCT/uwcisa Agenda Trust on the Internet Trust Theories Building Trust Barriers to Trust Surmounting the Barriers Trust on the Internet Survey findings: >300 million people use the Internet today (50% US) 40% have purchased online within month (60% in US) 25% of purchases impulsive 10% have personalized a web page users don’t trust companies that collect data on Internet many browsers provide fake information online shoppers more brand loyal than offline shoppers Trust on the Internet 75% of Internet companies will not be around in 5 years unskilled hackers like “Mafiaboy” can disable major sites like CNN.com and Amazon.com Trust Theories Economics Psychology Economics of Trust Party 1 Do Not Trust Party 1 gets P Party 2 gets P Trust Do Not Honour Party 1 gets S Party 2 gets T Party 2 Honour Party 1 gets R Party 2 gets R Figure 1: The Trust Game S < P < R < T (Snijders and Keren 1999, 356) Psychology of Trust Perceived Size Attitude Trust in Store Perceived Reputa’n Jarvenpaa et al. 2000, p. 47 Willingness to Buy Perceived Risk Barriers to Trust Size $ Sales # customers # hits Attitudes General Specific: Absence of physicality Reputation Local Global Risk Security Privacy Transaction non-fulfilment General Tecchies play by different rules Ownership of data Fear of spam Low capital requirements: “anybody” can play Here today, gone tomorrow Absence of physicality Absence of human interaction Inability to see/feel product Unreliable cues about quality, trustworthiness of e-commerce entity (anybody can have a good looking website) Security Credit card abuse Access/modify/destroy user information Non-repudiation Integrity completeness, accuracy, timeliness, authorization of transactions Privacy IP addresses, cookies, clickstreams, registration data, etc. Data warehousing/Data mining Cross-referencing/Profiling Opt-out vs. Opt-in Ownership of data Spam Transaction Non-Fulfilment Goods out of stock Non-delivery Incorrect shipment Split orders Shipping costs Returns Trust’s 3C’s Create Confirm Continue Studio Archetype and Cheskin, 1999 Surmounting the Barriers Branding/BIRGing Proximity (Word of mouth, personal, etc.) Familiarity (Contact frequency, communication) Predictability (Track record: site, category) Accreditation (Experts, seals, etc.) Number of information sources Regulation Privacy Practices Privacy statements Positive opt in Collect only essential information Do not resell Zero knowledge systems Spam filters Security Technology Login Userids/Pswds identification authentication authorization Digital certificates SSL (Encryption) E-wallets Design & Configuration simple fast service-oriented navigable shopper friendly community global perspective fulfilment Communication Source, message, recipient Voluntary by companies rather than forced by regulation Toll free number Email Seals & Rating Systems Truste.com BBBOnline.org WebTrust ADDSecure.net ICSA.net WABureau.com WebWatchdog MultiCheck BizRate Gomez epinions.com comparenet.com planetfeedback.com Consumer Reports Yahoo Amazon etc Comparison of Seals 1 WT Business Practices Security Privacy Integrity Recourse Insurance BBB T-E WW BR MC ADD ICS WAB Comparison of Seals 2 WT High Standards Quarterly Indep Audit Quality Control Internation’l BBB T-E WW BR MC ADD ICS WAB Regulation Self-regulation hodge podge of inconsistent practices ineffective regulations scandals: RealNetworks, Doubleclick Government COPPA, CIPA, OPPA “[email protected]” Thank You Questions?