This document discusses the importance of trust in e-commerce and techniques for building online trust. It summarizes academic models of e-commerce trust and real-world strategies like trust assuring arguments, payment systems, reputation/branding, and third-party assurance. Specifically, it outlines the Web Trust program provided by accountancy organizations to provide assurance on websites, but notes it has faced challenges in gaining consumer awareness and response.

1. And what role can chartered accountants play How Web Vendors Build Trust

2. Importance of E-commerce trust Theoretical framework for E-commerce trust Real world techniques for building trust online Agenda

3. Importance of E-commerce Current Size: Online retail: 46 billion USD in the U.S. in Q1 2011 E-commerce: 62.7 billion CDN in Canada in 2007 Projected growth (Forrester Research): 10% per year in U.S. and Europe; $279 billion in US and €134 billion in Europe by 2015 Driver of change: reduced communication cost, access to global market, long tail effect Importance of E-Commerce

4. Trust the vendor has the ability and intention to: deliver the product/service and Safeguard customer information E-commerce would increase if trust is improved Pew Internet and American Life Project (2008): If users more confident sending sensitive information, online shopping would increase from 66% to 73% ISO & Agent (2009): 43.5% of non-internet shoppers cite security as main reason Importance of Trust in E-commerce

5. Customer’s unfamiliarity with E-commerce Low cost for setting up fradulent e-commerce sites Prevalence of phoney websites of reputable businesses Complexity of the Internet and security solutions Lack of face to face interactions Inability to inspect product before purchasing Challenges for E-commerce trust

6. D. Harrison McKnight, VivekChoudhury and Charles Kacmar’s Model (2008) A.F. Salam, LakshimiIyer, PrashantPalvia and Rahul Singh’s Model (2005) JariSalo and HeikkiKarjaluoto’s Model (2007) Kaplan & Nieschwietz’s Model (2003) RituLohtia, Daniel C. Bello and Constance Elise Porter’s Model (2009) Academic Models for E-commerce Trust

7. McKnight et al.’s Model (2002)

8. A.F. Salam et al.’s Model (2005)

9. JariSalo et al.’s Model (2007)

10. Kaplan et al.’s Model (2003)

11. RituLohtia et al.’s Model (2009)

12. Trust Assuring Arguments Payment Systems Reputation/Branding Third Party Assurance Real world techniques for building trust

13. “Statement of a claim and its support statement used in an Internet store to address trust-related concerns” Content: Persuasiveness (Toulmin model of argumentation) Source: Third party or first party Elaboration Likelihood Model (ELM): As price go up, content becomes more important, source becomes less important Trust Assuring Arguments

14. Payment methods: prepaid and regular credit card, e-wallets, online bank transfer, cash on delivery and payment by post Perceived vs. actual security Low incidences of credit card fraud:0.2% of e-commerce and decreasing Additional security of prepaid credit card & e-wallet Still perceived as less safe Convenience and flexibility override security Payment Systems

15. Offline and online brand Significant driver of trust Building brand/reputation Repeated positive interaction with customers Marketing and promotion Brand alliance Brand/Reputation

16. TSL and SSL and Enhanced SSL Hacker-Tested seal Web Trust Third Party Assurance

17. AICPA and CICA Security, privacy, business practices, transaction integrity, availability, confidentiality and non-repudiation Assurance not monitoring or guarantee Low penetration: 41 websites in 2004 (6 years after launch) Challenges: Weak consumer response to CA brand Perceived and actual competence Accounting scandals Vendor only need third party assurance before establishing own brand Web Trust

18. E-commerce trust important in driving business success 3 Main drivers of e-commerce trust: Institutional characteristics Vendor characteristics User disposition to trust 3rd party assurance is a vendor characteristic Web-trust is a form of 3rd party assurance Overall, accountants have a limited role in e-commerce trust Conclusions