Internet Story: 27 Jan 1999

In order for trust to occur, individuals first rely on certain forms being followed.   Over time, reliance on these forms gives way to a reliance on experience.   Such experience is a necessity for true trust to develop.

Brand, navigation, fulfillment, presentation, up-to-date technology and the logos of security-guaranteeing firms constitute the essential formal characteristics of Web sites that communicate trustworthiness to visitors.  These six forms, in turn, can be divided into a total of 28 components that can be used to communicate trustworthiness.

Consumers see the world of the Web as one of chaos, offering both possibilities and threats.  Only after they believe they have secured control over their own personal data within the system, are they willing to begin to try out e-commerce.  While trust develops over time, communicating trustworthiness must occur as soon as interaction with a site begins.

Effective navigation is a necessary pre-condition to successfully communicating the trustworthiness of a site.  Having a well-known brand is also tremendously important.   Generally speaking, effective navigation combined with a well-known brand is the best way of communicating trustworthiness.  Combining strong navigation with effective fulfillment can also achieve this.

… and a Lesser-Known Brand Must Have Quality Navigation and Fulfillment to Compete

For lesser-known brands, navigation of and fulfillment from their Web site play significant roles in establishing trust. Any new Web-based brand MUST build in excellent navigation and fulfillment if it is to be trusted.

The presence of credit card symbols do little to communicate trustworthiness, even though they’re universally recognized by consumers.  In contrast, Web-based "security brand" seals of approval, such as VeriSign, when recognized, DO communicate trustworthiness.  Given the choice, smart Web retailers will place security brand logos on their sites.

…but Their Technology Matters Even More

On the other hand, consumers want to see that specific security brands use technologies understood to be important to security, such as encryption.  Savvy security brands will work to equate their brands with such technologies, and explicitly mention their use of these technologies.

Seven of the 12 most trusted brand names in e-commerce originated on the Web.   Regardless of where a brand established itself, however, one key aspect of establishing trust with consumers is the reputation of a brand, together, in many cases, with personal experience.

… and the Least-Trusted Sites Aren’t Well-Known

All of the least-trusted sites on the Web originated there.  Virtually none are well-known, however.  Generally speaking, a site that has never been visited and isn’t well-known is unlikely to be a trusted site.

While trustworthiness matters, it’s not necessarily the key attribute of a brand in cyberspace.  Strong fulfillment and navigation are key, independent of trust issues.  In addition, overall value, selection and lower cost all can be more important.  Trustworthiness, however, is often communicated when other fundamental needs are met, such as effective fulfillment.   Consequently, taking steps that communicate trustworthiness simultaneously satisfies many of the other needs expressed by consumers.

Beyond the question of communicating trustworthiness, consumers rely on the quality of navigation, more so than other components, to tell them if a site is likely to meet their needs.

To maximize growth, brands focusing on e-commerce need to address concerns about security and privacy.  Some things that an e-commerce site can do to address security and privacy concerns are:

Generally speaking, consumers expect that they’ll be engaging in e-commerce in much the same ways they are today — buying books, CDs and software.  Some product categories, such as jewelry and groceries, are expected to do poorly on the Web.

Seven of the 12 most trusted sites originated on the Web and have no presence outside of it.  In addition, 3 of the five dirt-world sites most trusted by consumers aren’t seen as particularly appealing sites from which to purchase.

In addition, some Web-based brands, such as Amazon.com, have established brands with more desirable attributes than their traditional retail competitors.  Increasingly, these Web-based brands could snare a significant market share if they choose to open traditional retail outlets.  Overall, we found that brand attributes increasingly matter more than the medium in which they are established.  This suggests that traditional retailers need to see Web retailers as a far more dangerous threat than they have previously.