UNDERSTANDING CONSUMER TRUST IN SOCIAL COMMERCE WEBSITES

Abstract

The social commerce represents a new form of electronic commerce mediated by social networking sites. It provides companies with competitive tools for online promotion, and it also assists consumers to make better-informed purchasing decisions based on the sharing of experiences from other consumers. Trust is important in social commerce environment as it serves as a foundation for consumers to evaluate product information from companies as well as from other consumers. However, extant literature still lacks clear understanding of the nature of trust in social commerce. This study sets out to understand trust development in social commerce websites. Specifically, based on trust transference theory, we develop a research model to examine how consumer trust in social commerce impacts their trust in the company and their electronic word of mouth intention. In addition, we also examine how customers’ prior transaction experience with a company could impact their social commerce trust development and serve as a mediator in the trust transfer process. The research model is empirically examined using a survey method consisting of 375 users of a social commerce website. This study contributes to the conceptual and empirical understanding of trust in social commerce. The academic and practical implications of this study are also discussed