Information Technology & Management 

About: Information Technology & Management is an academic journal published by Springer Science+Business Media. The journal publishes majorly in the area(s): Computer science & Information technology. It has an ISSN identifier of 1385-951X. Over the lifetime, 517 publications have been published receiving 18861 citations.

Consumer trust in an Internet store

Abstract: The study reported here raises some questions about the conventional wisdom that the Internet creates a “level playing field” for large and small retailers and for retailers with and without an established reputation. In our study, consumers recognized differences in size and reputation among Internet stores, and those differences influenced their assessments of store trustworthiness and their perception of risk, as well as their willingness to patronize the store. After describing our research methods and results, we draw some implications for Internet merchants.

Personalization versus Privacy: An Empirical Examination of the Online Consumer's Dilemma

Abstract: Personalization refers to the tailoring of products and purchase experience to the tastes of individual consumers based upon their personal and preference information. Recent advances in information acquisition and processing technologies have allowed online vendors to offer varieties of web-based personalization that not only increases switching costs, but also serves as important means of acquiring valuable customer information. However, investments in online personalization may be severely undermined if consumers do not use these services due to privacy concerns. In the absence of any empirical evidence that seeks to understand this consumer dilemma, our research develops a parsimonious model to predict consumers' usage of online personalization as a result of the tradeoff between their value for personalization and concern for privacy. In addition to this tradeoff, we find that a consumer's intent to use personalization services is positively influenced by her trust in the vendor. Our findings suggest that: 1. online vendors can improve their abilities to acquire and use customer information through trust building activities; 2. it is of critical importance that vendors understand and evaluate the different values consumers may place in enjoying various types of personalization.

Interpreting Dimensions of Consumer Trust in E-Commerce

Abstract: Consumer trust in an Internet vendor is an issue commanding ever more attention. Based on an extensive review of literature, this paper proposes dimensions of trust in an Internet vendor. These are competence, integrity and benevolence. Competence refers to a company's ability to fulfill promises made with the consumers. Integrity suggests that a company acts in a consistent, reliable, and honest manner. Benevolence is the ability of a company to hold consumer interests ahead of its own self-interest and indicates sincere concern for the welfare of the customers. In a further analysis various sources where trust might reside are also identified. Drawing on the literature in marketing and general management, the sources of trust are classified as characteristics of the consumer, the firm, the website and the interaction between the consumer and the firm. Given the dimensions and sources of trust, a path model for developing consumer trust in E-commerce is suggested. This research makes a contribution to the development of a theoretical understanding of trust in E-commerce. Although the concepts presented in this paper can be used to carry out further empirical research, they can also be used by practitioners to identify particular trust characteristics for realizing the potential of business to consumer E-commerce venture.

Measuring Information Technology's Indirect Impact on Firm Performance

Abstract: It has been recognized that the link between information technology (IT) investment and firm performance is indirect due to the effect of mediating and moderating variables. For example, in the banking industry, the IT-value added activity helps to effectively generate funds from the customer in the forms of deposits. Profits then are generated by using deposits as a source of investment funds. Traditional efficiency models, such as data envelopment analysis (DEA), can only measure the efficiency of one specific stage when a two-stage production process is present. We develop an efficiency model that identifies the efficient frontier of a two-stage production process linked by intermediate measures. A set of firms in the banking industry is used to illustrate how the new model can be utilized to (i) characterize the indirect impact of IT on firm performance, (ii) identify the efficient frontier of two principal value-added stages related to IT investment and profit generation, and (iii) highlight those firms that can be further analyzed for best practice benchmarking.

Do online reviews affect product sales? The role of reviewer characteristics and temporal effects

Abstract: Online product reviews provided by consumers who previously purchased products have become a major information source for consumers and marketers regarding product quality. This study extends previous research by conducting a more compelling test of the effect of online reviews on sales. In particular, we consider both quantitative and qualitative aspects of online reviews, such as reviewer quality, reviewer exposure, product coverage, and temporal effects. Using transaction cost economics and uncertainty reduction theories, this study adopts a portfolio approach to assess the effectiveness of the online review market. We show that consumers understand the value difference between favorable news and unfavorable news and respond accordingly. Furthermore, when consumers read online reviews, they pay attention not only to review scores but to other contextual information such as a reviewer's reputation and reviewer exposure. The market responds more favorably to reviews written by reviewers with better reputation and higher exposure. Finally, we demonstrate that the impact of online reviews on sales diminishes over time. This suggests that firms need not provide incentives for customers to write reviews beyond a certain time period after products have been released.