The Effects of Consumer Perceived Different Service of Trusted Third Party on Trust Intention: An Empirical Study in Australia

Abstract

With the advantages including the high interaction, convenience, transparency and individualization, the Internet makes the online shopping become increasingly popular among businesses and consumers. The online transaction environment is characterized by virtuality and anonymity, so the trust plays an indispensable role. Currently the trust issue has become one of the main reasons that troubles and hinders the online shopping behavior of consumers. In this paper, the trusted third party (TTP) in Australia's business is studied and the factors influencing consumers' trust behavior are examined from the perspective of consumers online trust of online shopping. Based on the literature review and combined with the development status and background of Australia's e-commerce, underpinned by the Theory of Planned Behavior, the Institutional Theory and Signaling Theory, an integrative service framework of TTP is proposed and empirically tested in this paper. Partial Least Squares Structural Equation Modelling was conducted to assess the hypotheses. This study proposes that an integrative service framework of TTP should include the following five aspects: payment service, logistics & distribution service, guarantee & insurance service, certification service, and rating & recommendation service. The empirical results, obtained in a sample of 282 online shopping users, indicate that the above-mentioned five different types of TTPs, which have combined effect on the trust motivation and behavior of consumers. Through building an integrative service framework of TTP, the level of consumer trust can be more fully strengthened. When consumers think that more services from TTP are owned by an enterprise, they have smaller barrier in their expected future trust and stronger control of their own trust behavior, and finally enhance the consumers' trust behavior.