The Impact of Familiarity and Reputation on Consumer Trust in E-Commerce

Lack of trust is one of the most important factors slowing down the growth of B2C electronic commerce. When rules and customs are not sufficient, consumers rely on familiarity and reputation as primary mechanisms to reduce transaction uncertainty. This study validates the impacts of perceived familiarity and perceived reputation on consumer trust in B2C electronic commerce. A research model is proposed and tested using structural equation model. It is found that perceived familiarity, perceived reputation, and perceived security control are important antecedents to online consumer trust. It is also discovered that both perceived familiarity and perceived reputation have a positive impact on perceived security control.