Initial Perceptions of Company Trustworthiness Online: a Comprehensive Model and Empirical Test

Trust has often been identified as an important factor in Business-to-Consumer (B2C) electronic commerce. Lack of trust in online companies is a primary reason why many web users do not shop online. This study proposes a model of the determinants and effects of perceived company trustworthiness by first-time customers. The model is empirically tested using a questionnaire-based field study. The results indicate that the most important determinant of initial perceptions regarding a company’s trustworthiness is how well customers believe the company will protect their privacy. Also significant is the perceived usefulness of the company’s web site. Other important determinants include perceived company reputation, the company’s willingness to customize, and perceived security control of the web site. Interestingly, while perceived company trustworthiness can increase customer intention to purchase we found no relationship with intention to return.