Businesses have understood that use of cutting edge technology per se does not lead to creation of full trust in customers which is needed from customers’ side to buy online. All superior technology can do is building technology trust, which is the level of confidence customers feel regarding the technology used by an online retailer. But another type of trust is more essential to persuade customers into buying online from a seller and that is called relationship trust. Customers should believe in the competence, reliability and integrity of an online entity before involving in any transaction with it. An online seller could be successful when it can communicate cues of competence and honesty to viewers in a matter of seconds to keep them on the website and afterwards lead them to buying online or at least generation of sales leads. Ease of use, simplicity of surfing and completing a purchase order in addition to accreditation of a recognized third party displayed on a website all can contribute to the development of relationship trust. Apart from all the measures taken by businesses to build up trustworthiness image of themselves, it is noteworthy to take into account the heterogeneity of online customers in terms of their perception towards risk. Those who are risk averse see less benefit and more cost in purchasing online as they have concerns about being exposed to online theft and other types of fraud and also afraid of buying something online and receiving a product with different specifications. At the other side of the risk continuum are risk takers, those who identify lots of benefits in online shopping because of cost and time savings which far and away outweighs the negligible risk associated with online transactions. What type of customers a business is dealing with would determine the required investment for building technology and relationship trust which are the prerequisite of engaging customers in online purchasing (Kim & Byramjee 2014).
Reference:Kim, S, & Byramjee, F 2014, ‘Effects of Risks on Online Consumers’ Purchasing Behavior: Are They Risk-Averse or Risk-Taking?’, Journal Of Applied Business Research, 30, 1, pp. 161-171, EconLit, EBSCOhost