three means of building trust in an electronic business relationship

1. Seminar presentation on the
three means of building trust
in an electronic business
relationship
Presenter: Anthony -Claret
Onwutalobi & Jessica
Jarrell

2. A general definition of trust
Trust is referred to as the willingness of a party to be vulnerable to the
actions of another party based on the expectations that the other party
will perform a particular action important to the trustee, irrespective of
the ability to monitor or control that other party (Mayer, Davis, and
Schoorman, 1995 )
Another definition suggests that
 The expectation that commitments undertaken by another person or
organization will be fulfilled, especially in relationships where the
trusting party lacks control over the trusted party but must still depend
on it (Geffen, 2002)

3. Why is trust important in e-business?
 In a global networked environment, cooperation and
collaboration are necessary
 The digital economy depends fundamentally on
collaborative work and complex partnerships
 Firms are experimenting with new organizational
forms
 Virtual organizations, designing organizations,
learning organizations Partnerships and inter-organizational
systems are becoming increasingly
common (short- and long-term)

4. Three means of building trust in e-business
relationship are:
Create Transparency:
Ensure maximum security
Streamline legal issues

5. Create Transparency
GET TESTIMONIALS: No matter how great your credentials are or
how much experience you've had, people pay more attention to what
OTHERS have to say about you.
STAY IN TOUCH : The people you see and talk to on a regular basis
are usually the ones you trust the most. Communication isn't the only
ingredient for developing trust, but it is a critical one. If you sell services
or high end products, a personal phone call is one of the best ways to
answer prospects questions, and to establish trust. Contact your
prospects and clients regularly and get feedback on what they are
concerned about.

6. Continue……
PERSONALIZE YOUR MARKETING: Its a common
misperception that to sound credible your marketing should be dry and
impersonal. People do business with people. You need to help prospects
get to know you and trust you. Let your passion and personality come
across in your marketing as well as your professionalism. Include a
picture of yourself, with a smile, in a prominent place on the first page
of your marketing materials

7. Ensure maximum security
 Treat business information with care by: designing
firewall to let through only specific traffic, and to
monitor even trusted client’s communication in case
their system is breached by a hacker
 Encryption: organization should encrypt all sensitive
information and standardize it in order that company
could trust them
 VPN: designed to provide privilege access to trusted
3rd parties making the public internet safe by creating
an encrypted tunnel for information flow


8. continue
 Digital certificate: To keep online business-to-business
transactions secure, Company uses digital
certificates and authentication software to verify
customer identities, as well as public-key
infrastructure and encryption to protect the
integrity of the transactions.

9. Streamline Legal Issues
 Bonding: in this way one or more parties deposit a bond with a trustee. If any of
specified list of condition is breached, the bond is forfeited
 Legal Agreement: Where two parties sign up a temporary contract to bind both
parties in their online business transactions
 EXCHANGE ENDORSEMENTS: Team up with a business you trust that also targets
your market. Get them to include an endorsement of your products and services in their
marketing and do the same for them. While a personal referral is ideal, an endorsement is a
close second. This tactic can double your marketing reach at zero cost
 REDUCE PERCEIVED RISK: Buyers' biggest concern is how well your product or
service will perform. Providing a guarantee may help, but in most cases its not going to
make the sale. Clarify the value you provide and state your commitment to seeing that your
clients are not only happy, but ecstatic about your product and services

10. Conclusion:
 The need to trust business partners is nothing new to
every business transaction. However, means to
establish this trust in online business is crucial. It may
require security, transparency, and the idea of
streamlining legal matters in order to build it. With
this in place, it would result in more favorable
response to the firm's offerings and a long-term
trusted relationship between consumers and business
organizations