An empirical study of the use of e‐security seals in e‐commerce
| Pages | 655-671 |
| Published date | 07 August 2009 |
| DOI | https://doi.org/10.1108/14684520910985666 |
| Date | 07 August 2009 |
| Author | Bruce Chien‐Ta Ho,Kok‐Boon Oh |
| Subject Matter | Information & knowledge management,Library & information science |
An empirical study of the use of
e-security seals in e-commerce
Bruce Chien-Ta Ho
Institute of E-Commerce, National Chung Hsing University, Taichung, Taiwan,
and
Kok-Boon Oh
Graduate School of Management, La Trobe University, Melbourne, Australia
Abstract
Purpose – The purpose of this paper is to examine the use of e-security seals on web sites and their
relative impact on e-commerce firm reputation in influencing customers’ perceptions of trust in a
service provider.
Design/methodology/approach – Two interrelated empirical studies are conducted to evaluate the
use and impacts of e-security seals in e-commerce. An exploratory study methodology investigates the
use of e-security seals and a questionnaire survey is used to gauge consumer knowledge of seals.
Findings – Using survey data from 211 web users, the results show that 106 respondents are
cognitive and affective of e-security seals. The results also provide further clarification of the
relationship between e-security seals and sales effectiveness. The findings point towards a positive
belief by consumers in e-security seals.
Research implications – Third-party e-security seals organisations should undertake more
promotional activities and advertising to educate comsumers about the use and benefits of e-security
seals.
Originality/value – An important issue in e-commerce is how trust is developed between consumers
and e-vendors. This paper investigates the use of e-security seals and their influence on consumer
confidence in the online environment.
Keywords Data security, Trust,Electronic commerce, Internet shopping,Consumer behaviour,
Decision making
Paper type Research paper
Introduction
In recent years, computer applications have greatly changed people’s lifestyles by
making interactions more convenient. The internet, which is one of the most important
computer applications of the modern era, has changed the way we conduct commercial
transactions and social interactions by erasing national boundaries and providing 24
hour service to people around the world (Vrechopoulos et al., 2003) from the comfort of
their homes and offices. However, unlike traditional commerce, the virtual
environment does not provide the opportunity for a face-to-face meeting between the
consumers and e-vendors. Hence, an important issue in electronic commerce
(e-commerce) is how trust is developed between consumers and e-vendors.
A third-party e-security seal programme would be one way to address the
uncertainty consumers may have about an e-vendor (Cook and Luo, 2003 ). Kavor et al.
(2000) found that e-security seals could significantly influence consumers’ decisions to
purchase online. E-security seals can reduce perceptions of risk and thereby cultivate
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E-security seals
in e-commerce
655
Refereed article received
9 July 2008
Approved for publication
2 October 2008
Online Information Review
Vol. 33 No. 4, 2009
pp. 655-671
qEmerald Group Publishing Limited
1468-4527
DOI 10.1108/14684520910985666
online purchasing. Given this, the primary objective of this research was to investigate
the current use of e-security seals and their influence on consumer confidence in the
online environment.
In order to achieve the research aims, this study addressed two perspectives of
e-security seals by conducting two separate but related empirical studies. Specifically,
the first study (referred to as Study 1 from here on) used an exploratory study
methodology to research the use of e-security seals in Taiwan. The second study
(Study 2) examined online consumers’ knowledge about e-security seals and their
attributes, particularly by identifying those factors and functions of e-security seals
that help online consumers develop trust in e-commerce providers.
The participants in this study were from Taiwan. Compared to other Asian
countries, Taiwan has a relatively well-developed information communication
technology (ICT) infrastructure, which is essential for supporting e-commerce. In
Taiwan at the time the study was conducted, the e-commerce sales volume for 2006
was around US$5.1 billion and this was expected to increase by 53 per cent to be in
excess of US$7.1 billion in 2007. Furthermore, the average expenditure per consu mer in
2006 was US$320 dollar (Market Intelligence Center, 2006). Therefore Taiwan provided
an appropriate empirical setting for investigating e-security seals.
Literature review
E-commerce has grown significantly in the past few years (Odom et al., 2002). Chen and
Dhillon (2003) have defined e-commerce as the transaction of products or services over
the internet. The internet is increasingly being used as a medium for the sales,
production and distribution activities of firms and is also often the preferred medium
for gathering and distributing information (Islam and Oh, 2003).
In the virtual environment, consumers have no opportunity to meet the vendors
face-to-face and as a result many consumers do not trust the internet as a channel for
purchasing products or services. Hoffman et al. (1999) stated that 63 per cent of online
consumers delay in providing personal information to web sites because of a lack of
trust in them. In 2001, the US-based Better Business Bureau (2001) Online identified
security and reliability as the two main concerns in the online environment, an d these
two concerns are closely related to the issue of trust. In order to understand and obviate
the fears and uncertainty arising from e-commerce, some studies have been conducted
on how to build buyer-seller trust. Huang (2001) and Schoder and Yin (2000) found that
displaying an e-security seal (third-party assurance seal) on a web site would help to
increase consumer perception of its reliability and therefore build trust. This visibility
should also be augmented by proactive marketing of the accrediting independent
bodies to heighten online shoppers’ awareness of such logos. Other than building initial
trust, companies need to be customer-focused in offering products and services online
in order to develop long-term customer relationships by fostering confidence and
credibility.
The definition of trust
The element of trust is highly complex and multi-dimensional (Lewis and Weigert,
1985; Butler, 1991; Barber, 1983), and definitions of trust can be found in the literature
of different fields of study (Ibbot and O’Keefe, 2004). Taking the social exchange field
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