On-line Reputation Systems: The Effects of Feedback Comments and Reactions on Building and Rebuilding Trust in On-line Auctions

Previous research on reputation systems has primarily focused on the trust building function of reputation systems. The current research also addresses the trust rebuilding function of reputation systems, specifically, the role of the short text comments given in reaction to negative feedback. Online markets are noisy environments; rebuilding trust is therefore often necessary. The results of two experimental studies among actual eBay users show that the text comments accompanying negative feedback are influential towards trustworthiness judgments. It also makes a difference whether a trust violation is perceived as competence-based or morality-based. Moreover, plain apologies were observed to be more successful in repairing trust than denials. The effects were mediated by perceived believability of the comments. Thus, to avoid the detrimental effects of noise on trust, operators of online market places should encourage text feedback comments and reactions. keywords: reputation systems, trust, trust reparation, apology, denial to appear in Int. J. of Electronic Commerce (2009)