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IRISH MARKETING REVIEW

IRISHMARKETINGREVIEW

Volume 17Number 1 & 2

Volume 17

Number 1 & 2

IRISH MARKETING REVIEWEnhancing Marketing Thought and Practice

Editor

Aidan ODriscollDublin Institute of TechnologyFaculty of Business

AssociateEditor

Darach Turley (Dublin City University)

AdvisoryBoard

Professor M.J. Baker, University of StrathclydeProfessor A.C. Cunningham, University College DublinProfessor G.S. Day, Wharton School, U. of PennsylvaniaProfessor L. Fahey, Boston UniversityProfessor G.R. Foxall, Cardiff Business School, U. of WalesProfessor R.P. Kinsella, University College DublinProfessor H.G. Meissner, University of DortmundProfessor J.A. Murray, Trinity College DublinProfessor J.A. OReilly, Dublin Institute of TechnologyP. OSullivan, Dublin Institute of TechnologyProfessor C. Pinson, INSEAD, France

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Stephen Brown (UU)Kate Ui Ghallachoir (DIT)

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ManuscriptsAcademic manuscripts are double-blind refereed.Invited and practitioner papers are judged assensu peritorum. Editorial enquiries, manuscripts, books forreview should be addressed to the editors at DublinInstitute of Technology, Mountjoy Square, Dublin .Tel: ( ) . Fax: ( ) .Indexing and AbstractingContributions to this publication are indexed andabstracted in ABI/INFORM and in Contents Pages inManagement (hard copy; UK).SubscriptionsIrish Marketing Review is published in spring andautumn by Mercury Publications Ltd, Main Street,Donnybrook, Dublin . Tel: ( ) . Fax: () . A subscription costs in Ireland. A personal subscription is available at . Overseas rates are and respectively.The Marketing InstituteThe Marketing Institute is the representative body ofthe marketing profession in Ireland. Its members, associates and students number . The Institutes mission is to position marketing as the crucial factor forbusiness success, and through its various activities itprovides a lifetime environment of career enhancingopportunities to each member. Irish Marketing Reviewis sent to members and senior students as a membership service. Membership enquiries to: The MarketingInstitute, Marketing House, Leopardstown, Dublin .Tel: ( ) . Fax: ( ) .Dublin Institute of TechnologyThe Dublin Institute of Technology (DIT), anautonomous university-level institution since January, has provided technological and business education up to the highest levels for over years. It isorganised in six discipline-related faculties: AppliedArts, Built Environment, Business, Engineering,Science, and Tourism and Food. It has a total enrolment of , students, including , full-timethird level students and over postgraduate andother post-third level students.

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CONTENTS

ARTICLES

Power and Disciplining: Bringing Foucault to Marketing

Edward Kasabov this study of negative consumption and of consumers, dissatisfied in the context of a service provision,explores issues of control, power and normalisation on the part of organisations towards their consumers.

The Determinants and Consequences of Consumer Trust in E-Retailing:A Conceptual Framework

Caroline Bramall, Klaus Schoefer & Sally McKechnie presents a testable model describing the relationship between the determinants and consequences ofconsumer trust in e-retailing.

Managing Customer Retention in the Health and Fitness Industry: A Case of Neglect

Teresa Hurley findings indicate the need for a change in company culture and strategy, with greater emphasis by seniormanagement on member retention as opposed to new member acquisition.

Managing Corporate Rebranding

Aidan Daly & Deirdre Moloney presents a case history of Vodafones external and internal communications strategy when rebrandingEircell to Vodafone, and proposes a corporate rebranding framework.

A Snapshot of Public Opinion on Biotechnology and GM Foods at the Turn of theTwenty-First Century

Elaine OConnor, Gwilym Williams, Cathal Cowan, John OConnell & Maurice P. Boland analyses the results of surveys as well as the survey methodologies in order to assess the credibility ofthe data on consumer attitudes to biotechnology and genetically modified (GM) foods.

An Investigation into the Non-Usage of Qualitative Software in the MarketingResearch Industry

Elena Bezborodova and Billy Bennett long and steep learning curves, and the necessity to achieve a high level of qualitative data analysis (QDA)software familiarisation, are among the major barriers for researchers in the commercial sector.

Review EssayBranding and Third World Development: Does AnholtsBrand New Justice Make Sense?

John Fanning considers the realism of the central premise of Simon Anholts recent book that branding could hold the keyto the economic problems of less developed countries.

THE MARKETING INSTITUTE

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POWER AND DISCIPLINING:BRINGING FOUCAULT TOMARKETINGEdward KasabovResearch on buyer behaviour and consumption has largely ignored thenature of power and disciplining in marketing. Conventional marketingdiscourse seems rooted in customer centricity and embraces an often naveview of consumerprovider relationships. This study of negativeconsumption and of consumers, dissatisfied in the context of a serviceprovision, explores issues of control, power and normalisation on the partof organisations towards their consumers. It probes the dark side ofmarketing. The narratives of the consumers reveal four power types: directpower; gendered power; information inequities; and disciplining.The final power type reflects the a Foucauldian shift in the technology ofpower from earlier forms of exemplary punishment and observable controlto the refined instruments of observation, inspection, and controlling whichare becoming the norm of modern society. Help lines and direct marketingare two familiar and prominent examples of refined disciplining. The authordiscusses how such approaches seek to control, standardise and regulatethe consumer and how the consumer, in turn, attempts to thwart suchdiscipline and distance themselves from such stratagems.

IntroductionGreater reflexivity, richness, questioning, and diversity characterise marketing thinking currently. Thegrowing richness and relevance of theoretical andempirical studies are particularly pronounced in thedomain of buying behaviour and consumption. Areview of the important writings from the mid-sonwards reveals a departure from the understanding of appropriate research in the s and earlys. Far from being the homogeneous researchterrain, with shared views of what constitutes goodanalysis, marketing is becoming more poly-vocal andfragmented, and intrigues academics from neighbouring disciplines.Nonetheless, certain issues and processes pertinentto buying behaviour and consumption are rarelyinvestigated and reported. This problem of marginalised matters is of importance here; it informsthis article and the research on which it is based.Among matters still viewed as step-children by marketing theorists are power and disciplining anabsence of research interest which is easily contrastedwith the attention to power in sociology, politicalscience, and philosophy.Having identified power- and disciplining-relatedgaps in marketing research, we present a summary Mercury Publications

of relevant aspects of a two-year research on powerand disciplining in two cultural settings. The settings, though different, reveal remarkably similarmechanisms of observation, control, visible and lessvisible application of influence on the part ofproviders of goods and services. Four types of power,uncovered in the narratives of dissatisfied consumers,are proposed. Excerpts from the narratives illustratethe discussion and provide the reader with a flavourof the power-laden buying and consumptionepisodes. These power types and incidents suggest anumber of lessons concerning marketing researchand practice, observation, and counter-observation.New Agendas for Research inMarketingThe argument in this article is set usefully againstthe backdrop of a number of developments inresearch in marketing. First, research on buyingbehaviour and consumption has progressed in animaginative and diverse manner over the past decade.Previously under-researched issues and processes,such as consumer passion, longing, experiencing art,social influences in consumption, gift giving, andhistory of object ownership have found their placein journals and books (Belk et al., ; Joy andSherry, ; Lowrey et al., ; Ruth et al., ;Strahilevitz and Loewenstein, ).

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Second, and not surprisingly, this newly found interest in investigating matters such as these has beenaccompanied by challenges to conventional conceptualisations. Established theoretical positions arereplaced or supplemented; the research terrain ismore fragmented and poly-vocal, reflecting considerable challenge to orthodoxy (see Weick, ;Lyotard, ). This tolerance for, and acceptanceof, challenges to previously uncontested theoreticalunderstandings is found in articles on consumptiontheorising and the embracing of postmodern understandings (Sherry and Schouten, ; Thompson,).Third, methodological approaches and methodshave become more diverse. Established methodologies are contested, and methods are subject to revisiting, re-conceptualisation, and modification. Thepast supremacy of experimental-nomotheticmethodological positions of quantification is questioned, and even modified versions of this nomothetic approach are no longer considered realistic(Fournier and Glen Mick, ). Unconventionalmethodologies are commonplace narrative analysis and ethnographic methods are widely accepted(see Thompson and Tambyah, ; Belk andCosta, ).A fourth and final area of change is cross-disciplinarity. Marketing research has come to draw on disciplines which are contiguous or distant to it.Examples of this development, discussed byBettencourt and Houston (), are, among others,articles about ad dramas (Escalas and Stern, )and personality consumption research (Baumgartner,). This external search for questions,approaches, and answers also facilitates the threeabovementioned developments. By being interestedin what is done outside marketing, researchers avoidcognitive homogeneity and encourage research innovation. These searches facilitate experimentation andcross-overs.Progress and maturation in marketing research,though, is far from complete; shortcomings remain.Particularly relevant to this paper is the marginalisation of matters of relevance to marketing that havebeen subject to heated debates elsewhere in the socialsciences. In particular, we argue that issues of power,influence, and disciplining are neglected in marketing research. A study of discourses of fashion(Murray, ) is one of the few examples of analy

sis of politics, power and commerce. This lack ofadequate attention to contestation, influence, andsubordination stands in stark contrast to continuedefforts to understand the problematic of power inphilosophical, sociological, anthropological, andpolitical accounts (see Arendt, ; Foucault, ,; Gamson, ; Moriss, ; Moscovici, ,; Russell, ; Wrong, ). An attempt toaddress this gap, by researching power and lookingfor answers beyond conventional marketing theorising, is the purpose of this paper.Power and Disciplining: ConceptualFoundationsThere are multiple, at times conflicting, conceptualisations of power. To May (), it is about bothpotentiality and actuality an inclusive understanding not dissimilar to Russells () notion ofmanufacturing anticipated consequences. This focuson visible effects is echoed in Percys () conceptof inducing conformity and Morisss () production of command. Even when power is treatedas potential, as in Gamson (), potentiality oftencomes second to the interest in induced alteration(Moscovici, ) and the employment of penaltiesand rewards (Tedeschi, ; Tedeschi et al., ).Other informative writings on power include piecesdocumenting the shift in focus away from the analysis of visible power and towards the search for lessvisible power. Lukess () interest in the prevention of negotiation and discussion, agenda manipulation, and the pre-selection of appropriate solutions is also a focus on implicit power and providesa good example of the way in which dominant ideologies and social understandings prevent discourseand dissent. This type of power can successfullylegitimise social practices which are arbitrary. Equallyapplicable are arguments regarding the internalisation of practices and hegemonic despotism(Burawoy, ; Clegg, , a, b). As far asmore visible aspects of power are concerned, researchon resources, imbalances, and dependencies, foundin Pfeffer and Salancik () and Steil and Weltman(), has also proved useful.Though traceable to all of the abovementioned writings, this research is, in its final form, an intellectualoffspring of Foucaults distinction between premodern punishment and the modern logic of surveillance and observation (Foucault, , ). Anin-depth discussion of Foucaults thesis of the disciplinary apparatus, docile body, normalisation,

Power and Disciplining: Bringing Foucault to Marketing

penalty, conforming, surveillance and moulding ofbehaviours is not possible considering the brevity ofthis discussion, nor is it essential. Only some central concepts of Foucaults thinking are summarisedhere and linked to findings in later sections. ToFoucault, the seeds of surveillance, normalisation,and modern forms of control can be found, chiefly,in the measures adopted to combat the plague inearly Europe and in Benthams Panopticon project.As far as the first is concerned, the extraordinaryperiod of combating the plague gave birth to extensive observation, surveillance, and constriction. Eventhe tiniest of details of daily existence were governedby rules. Society became extraordinarily disciplinedin this time of horror death and fear could be vanquished through impeccable organisation and exacting obedience.The social project of the Panopticon, unlike thesocial control in times of threat to civilised life, wasa peace-time project which facilitated observation(of inmates) and which relied on subjects having nocontact with one another, on their turning intoobjects of information rather than participants incommunication, and on their behaviours being perfectly visible. Visibility vertical but never horizontal provided a perfect mechanism for controlling transgression and ensuring order. The social waseliminated and replaced with individualised, confined spaces. This design was to effectively instil constant anxiety and awareness, on the part of theobserved, of their position. Power became non-verifiable yet highly visible.The simple principles of observation have been putto ever greater use, across social situations; theyensure the efficient application of pervasive, homogeneous power. The application of exemplary powerand visible punishment is unnecessary, to keep thesocial organism in order. The physical manifestations of power are partly replaced with subtle measures of control based on amassed information andcorrection of digression. The utility of this generalmodel of education is explained in terms of itseffectiveness in perfecting control. It allows for invisible intervention, silent control over the mind, andinfluence which is not external to the social organism but permeates it.Empirical ResearchThe empirical research, discussed here, investigatedthe negative experiences of twelve dissatisfied con-

sumers. The research took place in two cultural settings, one Irish and one Bulgarian. Two rounds ofinterviews were organised during which narratorswere asked to describe, and reflect on, incidents ofbuying and consumption negativity as well as thelarger socio-cultural and historical context of theirstories. The narratives were contextualised in specific socio-historical moments and the personal lifetrajectories of the narrators a union of larger andpersonalised themes and an illustration of the historicised self, following Thompson (, ).Narratives, it is argued, do not exist in a social andhistorical vacuum; the self is not a collection of personal characteristics but the product of individualenvironment negotiations (see Schutz, ;Wagner, ). This negotiated self is fundamentalwhen approaching consumers interpretations andthe labels they use to describe consumption experiences. The dual historicity suggests that complexlinks exist among consumption experiences, life trajectories, and larger, social developments. A narrative is not only about the verbal clash between aprovider and a client but also about personal andsocial experiences and understandings as well as theawareness of past and present.The narrative analysis reveals four major types ofpower which, while closely linked to Foucaults distinction between pre-modern control and themodern apparatus of observation, normalisation,and correction, expand his dichotomy. The fourpower types are clearly distinguished, since power,the narratives suggest, operates on various levels andaffects narrators in diverse ways. Power is not amonolithic entity which has universal, final, andpermanent traits and which operates according to aset of pre-specified rules; it is variable, changing, andinvites an awareness of and attention to difference.The power types, though linked, are separate. Withrespect to each type, a definition, illustrative narrative excerpts, and a brief discussion are provided.Direct PowerOf the four types, direct power is the visible, exemplary, and highly explicit form of control. It is basedon conventional means of exacting obedience acrude power type operationalised through visiblepressure and influence. Stories of explicit power execution and the application of visible mechanismsaffecting behaviours were, early in the researchprocess, separated from other power types. Thisearly identification was possible due to the recog

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nisable traits of continued subjugation (May, ),overt limitations (Inglis, ), and unconcealedcompelling. Words like angry, fight, yell, belligerent, and roar create an imagery of battleswaged between parties with irreconcilably opposing positions.A narrative about threats illustrates the mechanismsof direct power. The narrator exclaims, Heavens, Iwas she she got really mad at one point. She[an optician] showed me about ten pairs [of glasses],perhaps. I wasnt happy with any. And then [I] commented that there wasnt enough of a choice. And Ihad contradicted [her] before that too. And she gotmad and said that I could just as well leave her shopand then threatened to shut the door behind myback. An avalanche of accusations, on the part ofthe service provider, follows.The application of direct power, on the part ofproviders of goods and services, is explicitly identified, by some narrators, as an example of institutionalarrogance fuelled by the stark imbalances of institutional and individual resources. Resource imbalancesand institutional superiority prompt institutions toexact unmasked deference and conformity. Narratorsdescribe institutions as being unashamedly demanding and as getting away with it due to their privileged position. Narrators fears of institutions, andservice providers as representatives of institutions, canbe linked to a past when institutions were unaccountable, alien and threatening. As suggested by anarrator, even when confronting small establishments,there is the fear of the institution potentially behindit. People hesitate to complain, adding that you justdont know whom are you dealing with. It can be anex-cop or ex-security service clerk.Similar concerns surface in the following excerptwhere a narrator explains the indecisiveness of theindividual when openly confronted,

dominates some narratives. Stories are explainedwith respect to gender inequities in modernEuropean societies, a patriarchal socio-culturalpast, pressures towards inclusion of previouslymarginalised social groups, and opposition attimes organised to challenges to the status quo.The opposing logics of transformation and traditionalism, openness and resistance to openness,emancipation and subjugation, find expression, inthe narratives, in issues of employment opportunity equality, expectations about the public role ofwomen, and solidarity.A narrative excerpt reveals the logic of genderedpower, and some problems that women face whenconfronted by a male provider in particular.And so, he came closer drunk and yelled,What do you want?, Get out of here!, You have ahuge mouth! I was, you know, with my friendand the master, but they were as if absent atthis moment. I did all the arguing myself I thinkthat I had forgotten that I could have been physically assaulted.

The incident illustrates the readiness of providers toresolve disagreements with female customers bytaking advantage of their alleged superiority. Thefact that the provider in question is dealing with awoman makes it easier for him to demonstrate hisperceived social standing. The abuse is coupled withthe injured dignity of the narrator. Similar issues ofcompromised pride appear in other stories womenare weak and vulnerable, and they are expected toremain so. In times of profound social transformation and uncertainty, it seems, centres of traditionalpower may feel threatened by the prospect ofchange. Their likely reaction is to fight back, declarethemselves and make yet another claim. This problem of insecurity links the gendered power discourses with the endangered traditionalism and violence, discussed by Arendt ().

I think theres just been such a culture here, of doingwhat youre told. theres been a sense of are we,sort of, being under-dogs. People are passive Youknow, there theres not the same degree of answerability. And people dont have faith in the laws andthe justice system. Dont have faith in big institutions.

Power distribution and inequities surface in storiesof isolated cases of assertive women. Such womenappear to be more masculine than typical. Theybehave almost like a man, and are able to protecttheir rights, to fight.

Gendered PowerGendered power, or power based on gender-relateddifferences between providers and consumers,

I remember there was the issue of promotions onceand she managed to defend her position I admireher for that She has a big mouth. She wouldnt besilent and let things happen, you know [laughs].

Power and Disciplining: Bringing Foucault to Marketing

Information InequitiesThe power type information inequities is often foundin contexts of professional service provision, themedico-professional in particular, where imbalancesin the relative positions of the lay person and theprovider of services, or the expert, are pronounced.The contexts are of a provider who possesses superior, insider knowledge about practices and routineswithin institutions that are not transparent to outsider-consumers. An example of the abuse of information, to the advantage of a provider, is a narrative about a GP who misuses his knowledge ofsurgery practices in hospitals. The specialist, whenproviding his expert opinion, cannot be contradicted and can easily take advantage of his statusand erudition.

the transition from one modality of power toanother continuous, refined, bureaucratised calculation and surveillance is visible and marks theemergence of disciplining.

Although a number of significant issues related toinformation inequities warrant mention, the powerlessness of the consumer in situations where theprovider possesses technical, specialised, and highlyvalued knowledge is of primary concern. As a narrator observes, the consumer (patient) is confrontedby an arrogant and disrespectful expert, yet has nooption but to leave things the way they are. Whatwas I supposed to do?!, a narrator expresses herpowerlessness fuelled by fear of retaliation on partof the service provider. He [a mistreated client]wouldnt have dared commenting in front of them[the hospital staff ] because they could haveignored him forever. This fear is a rational reaction,considering the nature of professional service relationships where the patient is caught in a year-longlink with a provider marked by high exit costs.

Help lines and the application of standard operating procedures when dealing with customers are twofamiliar and prominent examples of refined disciplining. A number of narratives of call centre operators disciplining customers were identified duringthe interviews. One of them demonstrates bothimplicit control (cornering and quarantining complaining consumers) and the awareness of the individual (resolved to get through this buffer zone)of disciplining attempts.

DiscipliningThe final power type reflects the partial, long shiftin the technology of power from earlier forms ofexemplary punishment and observable control tothe refined instruments of observation, inspection,and controlling with which modern society hasbecome accustomed. This is a Foucauldian shiftfrom the magnificent public spectacle, from thestate exemplifying its power, from correction,moral improvement, and the display of strength the carnivalesque, the theatrical event, the moralmoment imbued with shock and awe. The newpower logic is one of rationalisation, scientificisation, and medicalisation of power. While olderexpressions of power are not totally replaced bymodern power expressions, and even thoughexplicit and disciplinary power are interpenetrated,

Disciplining, not intended to be observed, is aninstrument of control employed from within thesocial structure; it permeates through relations, themind, behaviours, and discourses of subjects. Themechanisms of modern restraints are hardly recognisable; with the focus on continuous observation,centres of power require detailed and perfectedknowledge of the subject. As suggested in narratives,a partial-to-extensive shift from personalisationtowards de-personalisation is notable, making iteasier to normalise the individual.

They were asking a lot of ah Well, have you donethis, have you checked that? stuff I would havechecked myself. And I was trying to explain to them,Sorry, I know what Im doing. Can you just put methrough to a technician? They had a set routineof questions they have to go all through and I, everytime I rang up, they had to go through these tenfifteen questions Why do we have to go through allthis again? No, sorry, we have to ask you all thesequestions. [laughs] And they were very reluctantto put me through to anybody in a higher position It was very much like they were a buffer zone.

Disciplining, the excerpt suggests, can be disguisedas a concern with equity and justice. It is camouflaged in carefully formulated sentences, questions,and suggestions that seek to put the dissatisfied customer on the right track.Discussion: Power, Disciplining andMarketingAt a number of levels, it behoves marketers scholars and practitioners to study the nature of powerand disciplining. The modernist project in marketing, in its attempt to hide away from the

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A Model of ObservationSO

CO

CO

SOCOSO

SO

SO

SO

SOSO

CO

SO

CO

SO

SO

COSO

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uncomfortable connotations of power, and fromnegativity more generally, has produced a cleansedand disinfected marketing. Power, though, is abuilding block of social encounters. In humaninteractions, numerous opportunities for difference, disparity, and imbalance exist. No matter howunsettling, power is important to sustaining sociality and the recreation of the social fabric. Thoughnot often recognised by marketers, its incorporation can facilitate future growth of a marketing theorising marked by reflexivity rather than cognitivehomogeneity.Such cognitive homogeneity has restrained development in the field and has made marketing predictable, prosaic, almost irrelevant in the eyes ofmany academics and practitioners outside the discipline. Marketing theorising, this research suggests,needs to become more contingent, less positive,more interested in searching for the less visible thatwhich has been relegated to a secondary positionand thrown out of past discourses. It suffices to setthe illustrations of power and their discussion in thispaper in the context of Browns () contentionabout customer centricity, where everyone in business today seems to take it as a God-given truth thatcompanies were put on this earth for one purposealone: to pander to customers (p. ). This, asBrown points out, could not be further from thetruth. In contrast to the exhortation of much marketing literature to delight and romance consumers,and to mantras of customer-as-king, is the reality offirms and organisations striving for control over theconsumer of exercising power over and disciplining the customer.

A second, equally significant implication builds on specific findings concerning observation and counterobservation in service encounters. Observation and theexamination of the human proved to be matters disturbing the interviewed consumers. Continuous surveillance facilitated and accelerated by advances intechnology and the sciences of human behaviour operates these days with meticulousness unparalleledin human history, narratives suggest. Power has cometo rest on knowledge of the human and the socialorganism; they are inspected, categorised, and madeobedient. Power is not dispensed so much in a topbottom manner, but rests within the network of centres of observation (CO) and subjects of observation(SO) (see Figure ) illustrating Foucaults convictionthat power is exercised from innumerable points.Power can be implemented thanks to detailedknowledge of the subject the explosion of helplines and database marketing provide two examples.Database marketing offers the perfect tool for isolation, specification, and transformation of the subject their disciplining; so do help lines. The spacescreated by both are not marked by social interactionbut are purely functional. The observation nourished by them is invisible yet pervasive. Neithermakes use of formal segregation, open exclusion, orexposed marginalisation; rather they employ meticulous tests and methodologies.The discussion so far, though, reveals only one partof this picture of observation, as told by narrators.The narrators awareness of, and opposition to, surveillance and normalisation need to be placedwithin this framework of observation and disci-

Power and Disciplining: Bringing Foucault to Marketing

Figure 2

A Model of Nested Observations

Unobserved space

Space of 2nd order observation

Space of 1st and 2nd order observation

Source: Modified from Spencer Brown (1969)

plining. Dissatisfied consumers are conscious ofveiled measures of control, and at times react tothese efforts. This counter-observation is, moreoften than not, discontinuous, singular, and superficial in the sense that, due to their limited knowledge of institutions, individuals can have a limitedimpact on institutional dynamics. When consumersattempt to penetrate the institutional skin thehelp line technicians, for instance they are confronted with rigid, well-rehearsed defensive routines. Nonetheless, counter-observation is possible.Its presence suggests that the uni-directional observation (provider consumer) suggested in Figure should be replaced with a complex series of observations and counter-observations where the observing bodies are, at times, themselves subjected to surveillance on the part of the observed. In fact, thismodel of observation and counter-observation isvery complex, this paper being itself an observationexercise. In an attempt to explain aspects of consumption that have remained under-researched, theresearcher has ended up in the position of a secondorder observer of incidents, seen through the eyesof narrators. This second-order observation offerssome insights as to the ways in which power operates. This refined model of observation, visualisedin Figure , illustrates first-order (observation) andsecond-order (observation of ) observation.The discussion of observation, counter-observation,and layers of observation suggests that, even in the

presence of perfected power methodologies, totalobservation is not possible no matter how encompassing and flawless the technology of surveillance.Every layer of surveillance is subjected to higherorder control. This imperfection of observationoffers the individual, living in an age of intrusivetechnological developments, the opportunity tochallenge, albeit locally, manipulation (an opportunity not to be confused with (total) emancipation, the rhetoric about which is at times dubiousand needs to be approached with care). A closeexamination of Figure reveals three spaces withdiffused boundaries. Space is inhabited by firstorder observation, while in space one findssecond-order observation where the researcher,aided by the comments of the narrators, presenteda local picture of consumer dissatisfaction. Thisspace, however, is not the final observation spacebut is part of a higher-order space in which thenumber and complexity of layers of observations is,potentially, endless.Counter-observation, part of any of the observationlayers, warrants a mention. As suggested in the narratives, the passivity accorded to the subjects ofpower is not necessarily accepted by them. It maybe tempting to explain consumerprovider or individualinstitution relationships as ones of embeddedness of the former in the latter. Embeddednessof this kind, though, disregards the experience ofhumans (the subjects of power) with disparate social

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influences (Whittington, , p. ) in a modernsociety composed of competing systems and rules.Systems interact with one another and jointlyimpact on subjects. At the point of intersection ofcompeting systems, rules also intersect. This tensionprovides humans with the opportunity to differentiate, reflect on, and choose among rules. Transplanted to this research, Whittingtons argumentsuggests that consumers are never only consumersbut are also mothers, retail workers, psychologists,educators, and so on. Their membership in, andinteraction with, multiple systems provides roomfor defying a structural logic, in the process of choosing among overlapping logics. The majority of theinterviewed consumers in this research were clearlyable, using Mouzeliss () arguments regardingagency and structure, to distance themselves fromrules and resources, in order to question them, or inorder to devise strategies for either their maintenance or their transformation (p. , emphasisadded). Distancing is shown to be possible; it occurson various levels.This notion of distancing brings the paper to a close.Marketers, as part of big, modern institutions, makeextensive use of disciplining even if not explicitly.Observation can be relatively crude and visible; orit can present a significant threat to personal andsocial freedom if it is subtle and refined. The awareness of social commentators and individuals aboutthe institutional use of observation prompts discussions and debates. Such social visibility of, and reaction to, observation induces institutions to deviseever more ingenious ways of carrying out this big

AuthorEdward Kasabov is an Advanced Institute ofManagement (AIM) Research Fellow at CardiffBusiness School, Cardiff University. He previouslytaught at Trinity College Dublin. His researchcovers four areas: economic policy (Central andEastern European structural adjustment),privatisation (informal institutions), marketing(relationship marketing; power and disciplining),and strategy (networks; clusters; biotechnology).His current project work involves UK life scienceand biotechnology clusters.

project of data accumulation, monitoring, and normalisation. Regarding the visibility of observation(and counter-observation, indeed), then, the association between those who desire to discipline (marketers) and those who are the subjected to disciplining (consumers) is one of a race that has itsanalogues in preypredator co-evolutionary modelsin the natural sciences. The more refined the observation, the greater the curiosity and interest inunwrapping it; this interest and the engenderedcounter-observation prompts, in turn, anotherround of observation perfection.ConclusionWe argue that research on buying behaviour and consumption would benefit from comprehending thenature and role of power and disciplining in marketing. Such consideration about power has provedimportant elsewhere in the social sciences. This article attempts to redress this neglect in the domain ofmarketing. Its empirical findings take the reader intothe dark underworld of the negative a world populated by dim and shadowy creatures, forces, andmotives that seem to have little in common with thebrightness and optimism marking the mythodeology of marketing discourse. The shadows, interestingly, inhabit precisely the same spaces populated bytheir mirror opposites so beloved by marketers.However, in order to discern and expose shadows,researchers need to take a closer, more critical look atthe numerous reflections and voices they see and hear.We, as researchers, need to open our perceptions tothese voices and allow them to reveal themselves intheir variety and magnificence.

References

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Power and Disciplining: Bringing Foucault to Marketing

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THE DETERMINANTS ANDCONSEQUENCES OF CONSUMERTRUST IN E-RETAILING: ACONCEPTUAL FRAMEWORKCaroline Bramall, Klaus Schoefer & Sally McKechniePurchasing via the Internet has overtaken purchasing through traditionalretail outlets in terms of sales growth rates. Nevertheless, there is strongevidence to suggest that while many consumers use the Internet to searchfor product information on electronic retailers websites, only a minority ofthem make purchases online. Concerns over the security of personal andcredit card information as well as the credibility of e-retailers are commonlygiven as resons for the low level of online purchasing.As a result online consumer trust in e-retailing has recently beenacknowledged as having a role to play in determining the likelihood ofusing the Internet for purchasing. Without building and maintaining trustbetween consumers and e-retailers, the development of the Internet as ane-commerce medium in mass consumer markets is unlikely to reach its fullpotential. This paper presents a testable model describing the relationshipbetween the determinants and consequences of consumer trust ine-retailing.

IntroductionThe impact of information and communication technology (ICT) on the sophistication and range of marketing channels for consumer markets has been thesubject of much discussion within contemporarymarketing literature (Peterson et al., ; Alba et al.,; Hoffman and Novak, ; Klein, ).Through a wide range of media customers can accesscompanies hours a day for information, purchaseand customer service, and new electronic channelsare increasingly seen as complementary to rather thancompetitive with traditional channels (Anton, ).The Internet is just one of a range of e-commercetechnologies to facilitate information exchange. Thebenefits of setting up an Internet presence are costreduction, new capability, competitive advantage,communications improvement, improved controland customer service improvement (Bocij et al.,). However, these benefits have yet to be fullyrealised as firms continue to search for the beststrategies and business models on which to base theire-commerce activities. The success of e-retailing ishighly important: if the Internet were to fail as a digital medium, not only would access to the WorldWide Web be lost, but the development and evolution of computer-mediated environments in generalcould also come under threat (Hoffmann et al.,a; Chen and Dhillon, ). Some researchershave argued that the most significant long-term Mercury Publications

barrier to the success of the Internet as a commercial medium in mass markets is a lack of consumertrust in the Internet (Jarvenpaa et al., ;Hoffmann et al., b). Consequently, it has beenargued that the determinants and consequences oftrust in e-retailing warrant further analysis (GrabnerKraeuter, ; Kimery and McCord, ).This paper develops a testable model of the determinants and consequences of consumer trust in eretailing. The aim is to gain a better understandingof consumer behaviour in online environments, inorder to provide some insights into the factors affecting the decision to purchase from an e-retailer. Thepaper proceeds by reviewing the relationship marketing literature on trust, followed by the justification for examining this construct in an online purchasing context using the Internet. Next, aconceptual model is developed, describing the relationship between the determinants and consequences of consumer trust in e-retailing.Literature ReviewAlthough the construct of trust has received considerable attention in business and social science literature, there is no universally accepted scholarlydefinition of the term. For example, psychologistshave attempted to relate the concept of trust to individual personality characteristics (Rotter ;Worchel, ). Alternatively, sociologists have

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considered trust with respect to the socially embedded properties of relationships among people. Economists, on the other hand, have tended to view trustas either calculative or institutional (Rousseau et al.,), whereas in the relationship marketing and services marketing literature trust plays a piviotal rolein holding a relationship between buyers and sellerstogether (Morgan and Hunt, ; Dwyer et al.,; Moorman et al., ; Berry, ). Accordingto Morgan and Hunts () commitmenttrusttheory of relationship marketing, commitment andtrust are necessary antecedents to successful relational exchanges, with trust being defined in termsof one party having confidence in the reliability andintegrity of an exchange partner. By comparison,Gwinner et al. () and Anderson and Narus() view trust in terms of perceived benefits ofdealing with another company.Overall, two common themes emerge from the literature about trust: first of all it represents a willingness to accept vulnerability, a belief about thebehavioural intentions of others and positive expectations about the outcomes of another partys behaviour; and secondly, trust is generally agreed to be adynamic process, which can be slow to build yet canquickly be destroyed (Yoon, ). While trust iseffective in developing a better understanding ofexchange behaviour, the dual nature of this constructmakes it problematic, for trust comprises both aglobal (attitudinal/affective) component and a situational one (Butler, cited in OMalley, ).For the purposes of the present study, a definition oftrust which specifically relates to e-retailing is sought.Within the retailing literature, it is commonly agreedthat there are two key conditions necessary for trustto develop: risk and interdependence of the consumerand the retailer (Chen and Dhillon, ; Rousseauet al., ). This notion of vulnerability, uncertaintyand dependence is elaborated on by Jarvenpaa et al.(), who link it to a consumers lack of controlover the purchasing situation, and suggest trust to bea governance mechanism in the retailerconsumerexchange relationship. As far as e-retailing is concerned, several researchers have posited that trust isan important element of intentions to adopt business-to-consumer e-commerce (Grabner-Kraeuter,; Pavlou, ; Vinton, ).Use of the Internet as a shopping medium is still ina very early stage of commercial development.

However, the stimulation of commercial sales is critical to its survival. A telephone survey carried out bythe Princeton Survey Research Associates showed thatonly per cent of respondents said that they trustwebsites that sell products or services all or most ofthe time (Wingfield, ). As a lack of trust is oneof the main barriers to adoption of Internet shopping, trust has been characterised as the most precious asset that any business can possess (Kimery andMcCord, ). So, in many respects online trust isvery similar to offline trust in purchasing situations.For example, trust both offline and online acts as afacilitator for formulating a positive purchase intention and a repeat purchase decision. However, theInternet medium brings new and uncertain situations, throwing new levels of importance onto theissue of trust. Significantly, this includes the absenceof contiguity in time and space of the exchange partners and the associated problems of privacy and security of personal and credit card information (GrabnerKraeuter, ; Yoon, ).Despite their differences, the definitions of trust inInternet-based retail situations are very similar tothose based on more traditional situations. Forexample, according to Kimery and McCord ()trust in an e-retailer is specifically defined as a consumers willingness to accept vulnerability in anonline transaction based on their positive expectations regarding an e-retailers future behaviours.They go on to suggest that if a consumer is providedwith better access to information about an e-retailer,they will be able to predict better and more confidently the retailers future behaviour, hence developing a higher level of trust. By placing trust in thee-retailer the consumer retains some control over thetransaction, as the actions of the retailer havebecome more predictable (Pavlou, ).One question plaguing potential online consumersis How do you know whom to trust? In a virtualworld, the issue of trust gets magnified (Economist,, cited in Jarvenpaa et al., ). The importance and influence of trust have long been established as a key factor influencing consumer behaviour and as such are critical for the growth ofe-commerce, due largely to the open and globalnature of the Internet. It is known that consumersare buying more than ever online and that they aredoing this in spite of nagging concerns about thetrustworthiness and reliability of web merchants(Wingfield, ). Part of this lack of trustworthi-

The Determinants and Consequences of Consumer Trust in E-Retailing: A Conceptual Framework

ness can be linked to consumers lack of familiaritywith the new medium. In online shopping many ofthe clues used by consumers in traditional retail situations are missing, causing a feeling of uneasinessand lack of trust, resulting in an unwillingness topurchase. It is suggested that by building relationships with customers the level of familiarity can beraised, but again, doing this online presents newchallenges. In the case of e-retailing, Jarvenpaa et al.() propose that when a salesperson is absentfrom the buying process, the retailing organisationitself becomes the primary focus of the customerstrust. They developed a model hypothesising thatconsumer trust in an online retailer is affected byconsumer willingness to patronise this virtual store.This model was corroborated for bookstore andtravel-based online retailers and was proposed as areasonable starting point for developing a theory ofconsumer trust in the Internet. However, they calledfor further research to explore the underlying processby which trust is formed or developed or how itevolves as the consumer interacts with the Internetand Internet-based stores.Model DevelopmentBased on the above literature review and in responseto the aforementioned call for further researchwithin the area of online trust, the present studydevelops a model which examines the determinantsand consequences of consumer trust in e-retailing.For the purposes of this model, the determinants ofconsumer trust are classified into three groups: thosepertaining to the store itself, those based on theInternet site, and those linked to the consumer.These groups are referred to as store-related determinants, website-related determinants and consumer-related determinants respectively.Store-related determinants of consumer trust examine whether the traditional advantages of a nonInternet-based store (i.e. a bricks and mortar retailoutlet) can be applied to the online environment.This is an area speculated to be undergoing aperiod of great change as the use of the Internet asa retail medium becomes more widespread. Website-related determinants concern the developmentof trust in an e-retailer based on items present onthe website itself. Consumer-related determinantsrelate to the beliefs held by consumers concerningthe Internet as a retail medium, the associated risksof shopping online and their previous direct shopping experience.

Store-Related Determinants of Trust inE-RetailingAs with traditional stores, reputation is frequentlyused by online consumers as an indication of a firmstrustworthiness, where reputation is defined as theextent to which buyers believe a selling organisationis honest and concerned about its customers (Doneyand Cannon, ). Referring to the economistsview of trust as a calculative concept, it is generallybelieved that the costs of acting in an untrustworthy manner are higher for retailers with an established positive reputation. This is because the development of such a reputation involves a significantinvestment and as such represents a valuable assetto the firm (Jarvenpaa and Tractinsky, ;Jarvenpaa et al., ). It would not be in theretailers best interest to jeopardise their reputationby engaging in opportunistic behaviour, as anyshort-term gains would not offset the loss of rewardsgained through holding a good reputation (Doneyand Cannon, ; Chiles and McMackin, ). Apositive reputation can hence be seen as providingassurances of ability, integrity and goodwill, therebyincreasing trust, particularly in first-time transactions (McKnight et al., ). Based on this line ofreasoning, it is hypothesised that:Ha: A consumers trust in an e-retailer is positivelyrelated to the retailers perceived reputation.Firm size, according to Doney and Cannon (),refers to the firms overall size and its market shareposition. A sizeable market share is often seen as anindication that the firm has a large number of customers. The link is commonly made that if theretailer were not competent, trustworthy and did notregularly follow through with commitments made tocustomers, it would not have been able to grow tothat size, or maintain its position in the industry. Alarge size also acts as a signal that the retailer will havethe necessary expertise and resources to maintain support systems such as customer and technical services.A further perceived advantage of larger retailers is thatthey should be able to exert some control over theirsuppliers due to the quantity of their orders, therebyresulting in a more reliable and credible service. Theexistence of such factors is thought to encourage consumer trust in the firm as they reduce the level of perceived risk. For example, Jarvenpaa et al. () arguethat for trust to exist, the consumer must believe thatthe seller has both the ability and the motivation toreliably deliver goods and services of the quality

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expected by the consumer. Furthermore, customerswould rationally determine that there is merit intrusting larger firms, since larger firms would incurmore significant costs through untrustworthy behaviour than smaller firms (Chen and Dhillon, ).Hence, it is expected that:Hb: A consumers trust in an e-retailer is positivelyrelated to the retailers perceived size.As the Internet is a relatively new medium for consumption, e-retailers are frequently compared withbricks and mortar stores. The assumption is oftenmade that e-retailers backed by a traditional, physical presence will be more reliable than those basedwholly online (Abdelmessih et al., ). Quelchand Klein (), for example, argue that websitesrepresenting a retailer with whom the consumer isfamiliar from traditional channels will be favoured.This assumption is based on the belief that that theestablished reputation and level of trust built by abricks and mortar store will be transferred to itsInternet operations. That is not to say that anentirely Internet-based store cannot convey a senseof trust to its customers, as the huge success achievedby Amazon.com bears testimony to this fact.However, e-retailers face several obstacles that havealready been conquered by their competitors, whichleads to the following hypothesis:Hc: Consumers will place more trust in e-retailers which are perceived to have an offlinepresence.Website-Related Determinants of Trust inE-RetailingIn a bid to increase consumer trust many e-retailershave associated themselves with a third-party assurance seal such as TRUSTe, BBBOnline, andVeriSign. These seals serve as tangible cues used bya company to enable its consumers to infer a senseof certainty and positive outcome of their participation in an exchange with the e-retailer (Nteberg etal., ; Chen and Dhillon, ). They aredesigned to communicate to the consumer that thee-retailer complies with a third-partys (i.e. assurers)specific standards or requirements and, as a result,can be trusted by the consumer. The display of athird-party seal on an e-retailers website signals alinkage between the e-retailer and the assuring thirdparty organisation. Consumers will extend their attribution of trustworthiness from the assuring organi

sation to the seal-displaying e-retailer to the extentthat they perceive the assuring organisation as a credible and trustworthy entity and recognise the seal asrepresenting a meaningful association between theassurer and the e-retailer (Kimery and McCord,). Based on this potential role of third-partyassurances to build trust, it is hypothesised that:Ha: Third-party assurance seals will have a positiveeffect on a consumers trust in the e-retailer.In e-commerce, consumers rarely deal with salespeople, therefore trust must be placed directly in thee-retailer, depending on an electronic interface toact on their behalf. This impersonal nature of theInternet has been suggested as one reason for consumers lack of trust in this medium. In traditionalretail channels consumers are able to make judgements about retailers through physical clues such asthe size of the store, its cleanliness, staff uniforms,etc. Furthermore, judgements can be based on thesalespersons, their knowledge of products, ability tosell and even their personal characteristics such ashonesty, familiarity with the customer, likeabilityand prior selling experience. On the Internet thesephysical clues and human contacts are lacking(Gefen, ). For e-retailers their website may bethe only means of communicating with customers,therefore its appearance and structure are of greatimportance. Accordingly, Wingfield () views aprofessional-looking website as a signalling mechanism indicating that the merchant probably is nota fly-by-night operation. A professional-lookingwebsite gives consumers a sense of normality, andbecause everything appears to be normal and inproper order, the perceived chance of success isincreased and the customer feels more comfortableand trusting towards making a purchase (Chen andDhillon, ). Therefore, it is hypothesised that:Hb: A consumers trust in an e-retailer is positivelyrelated to the perceived professionalism ofthat websites design.Consumer-Related Determinants of Trust inE-RetailingMost consumers today are regularly exposed to someform of technology such as ATMs or personal computers. As such they will have formed some attitudetowards technological items in general and computers in particular. Consequences, both good and bad,of dealing with computers might generate or rein-

The Determinants and Consequences of Consumer Trust in E-Retailing: A Conceptual Framework

force a consumers beliefs and attitudes towards ecommerce and influence their level of perceived trustin online environments and willingness to buy onlinein the future. Prior studies on electronic shoppingsystems have found the predisposition towards computers in general to be a significant determinant ofadoption and use of new forms of shopping(Korgaonkar and Moschis, ; Korgaonkar andSmith, ; Shim and Drake, ; Shim andMahoney, ; Eastlick, ). Other related researchhas found that if consumers have a favourable attitude to new technologies, then it is likely that theywill also view Internet shopping in a positive light(Latour et al., ; Bobbitt and Dabholkar, ).Positive experiences reinforce a consumers competence trust and contribute towards building a positive attitude, which is a prerequisite for repeat transactions (Sirdeshmukh et al., ). Following thisline of argument, the following hypothesis is framed:Ha: Consumers with a positive attitude towardscomputers will have a higher level of trust inthe Internet as a retail medium.Consumer attitudes towards computers and Internetshopping are frequently linked to their past experiences of direct shopping forums such as cataloguesand television shopping channels. For example,Eastlick and Liu () speculate that attitudes towardstelevision shopping provide a foundation for understanding attitudes towards other interactive shoppingenvironments. Other studies have also shown thatconsumers who have shopped from their home in thepast are more likely to shop online in the future (seeShim and Mahoney, ; Shim and Drake, ). Asit is generally agreed that trust is built over a periodof time, it would be feasible to assume that, providing past direct shopping experience was regarded positively, people with more experience will have a higherlevel of trust in using the Internet for consumption.Hence, it is hypothesised that:Hb: Consumers with past direct shopping experience will have a have a higher level of trustin the Internet as a retail medium.

lower trust and higher risk. It is also suggested that asconsumers web skills improve, they are more likelyto have a positive emotional response to Internet sites.This seems to imply a lower level of perceived risk andan increased likelihood of consumer trust (Koufaris,). Cheskin Research () found that those withthe highest confidence in their online skills and higherlevels of online experience were most willing toexchange personal information online. The misuse ofpersonal information is a key source of distrust, therefore this group of respondents may be displaying arenewed increase in trust. Furthermore, CheskinResearch () found that security symbols inspiredmore trust in heavy users (i.e. those with high currentdirect shopping experience) than light users, suggesting that they would be more willing to buy. Extendingthis line of argument, it is expected that:Hc: The lower the level of perceived risk associated with online shopping, the higher the levelof trust in the Internet as a retail medium.Relationship between Different Trust Categoriesin E-RetailingTrust does not exist in a vacuum, and it is oftenargued that diverse, complex, and self-evolving systems like the Internet actually create an atmosphereof trust (or lack thereof ) (e.g. Salam et al., andFriedman et al., ). Therefore, these complex systems should be viewed as valid participants in trustrelationships. As the argument continues, an end usermust first trust in that atmosphere the technologyand the human community combined and onlythen is he or she positioned to trust in any particular online interaction with other people (Friedmanet al., ). We agree with Friedman et al. (),and accept that the online environment in whichpeople interact (i.e. the Internet) has a decisive effecton a persons desire and ability to participate in a trustrelationship with an individual e-retailer. More specifically, we argue that a consumers trust in the Internetas a retail medium influences the formation of trusting beliefs concerning individual e-retailers. Based onthis, it is hypothesised that:H:

Attitude towards computers is also linked to the consumers level of perceived risk in online purchase situations. Perceived risk is an area that has receivedmuch attention in the existing literature. Jarvenpaaand Tractinskys () results very tentatively suggestthat greater experience with the web is associated with

The higher the level of general trust in theInternet as a retail medium, the higher thelevel of specific trust in an individual e-retailer.

Consequences of Trust in E-RetailingFollowing Coleman (), perceived risk can bethought of as representing an individuals assessment

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of the relative probability of positive and negativeoutcomes of a given transaction or situation. Anytransaction has risk factors specific to the transaction itself, including total potential financial loss orgain, as well as information uncertainty, complexity, and asymmetry (Kimery and McCord, ).Other more indirectly linked factors to the specificexchange, including familiarity with the problemdomain, interpersonal relationships, social influences, and institutional controls, have been identified as influencing the level of perceived transactionrisk (Sitkin and Barclay, ). Consistent withKimery and McCord (), the present researchmodels trust as one of the factors that influence howrisk is evaluated and perceived. The level of perceived risk inherent in a given exchange is offset bythe level of trust held by one party for the other. Asa result, perceived risk associated with an exchangeis partially a function of the trust between parties.In keeping with this conceptualisation, studies byFukuyama () and Morgan and Hunt () haveshown that trust reduces perceptions of transactionrisk. Trust is also linked with reduction in the needfor investments in institutional and contractualdeterrents to opportunistic behaviour (Fukuyama,) and increased risk-taking behaviour betweenindividuals and firms (Mayer et al., ). On thebasis of this, it is hypothesised that:Ha: Increased trust in an individual retailer willreduce a consumers perceived transaction riskassociated with making a purchase from thate-retailer.Hb: Increased general trust in the Internet as aretail medium will reduce a consumers perceived transaction risk associated with makinga purchase from an e-retailer.Previous research has observed that brand name isone of the most important extrinsic cues, which areproduct-related attributes not involved with theproducts physical or functional aspects that consumers use to evaluate products (Richardson andDick, ). Research shows that brand name canhelp consumers to reduce search cost and cognitiveeffort when making product evaluations (Landesand Posner, ), and can reduce their perceptionof risk (Moon and Millison, ; Erdem and Swait,, ). Arguably, then, brand name can effectively reduce a consumers uncertainty about product quality and his/her perception of transaction risk

concerning purchase decisions in online environments (Huang et al., ). On the basis of this, itis hypothesised that:Ha: The perceived transaction risk associated withmaking a purchase from a particular e-retailerwill be lower when a brand name is presentfor the considered product/service than whenit is absent.Several previous studies have proposed and found apositive relationship between price and perceivedfinancial risk (Kaplan et al., ; White and Truly,). In particular, it has been argued that the priceof the product is an inherent component of financialrisk (via initial outlay) (Grewal et al., ).Therefore, online transactions involving more expensive products should result in higher perceptions oftransaction risk (Ba and Pavlou, ; Bhatnagar etal., )). For example, an online transaction involving an expensive product such as a , digitalcamera can be considered riskier than that involvinga music CD. The more expensive a product is,the higher the potential loss a buyer faces. Given thegreater risk inherent in the exchange of expensiveproducts, it is hypothesised that:Hb: The price of the considered product/serviceis positively related to the consumers perceived transaction risk associated with makinga purchase from a particular e-retailer.Product complexity is defined as the extent to whichthe consumer perceives a product to be difficult tounderstand or use (Rogers, ). A product thatoffers a large number of options or that involves alarge number of steps in its use will typically be seenas more complex. Consumers are likely to perceivehigher risks when products are more complexbecause the difficulty in understanding the productleads to uncertainty, increasing the perception thatan unknown negative outcome may occur (Holakand Lehmann, ; Burnham et al., ).Similarly, the larger number of attributes associatedwith complex products makes both information collection and direct comparisons of attributes morecostly (Shugan, ). A more complex product isalso likely to involve a larger number of learned skillsor scripts that must be relearned in order to switchproviders (Wernerfelt, ). Finally, complex products are not easy to try (Holak and Lehmann,). Based on this, it is hypothesised that:

The Determinants and Consequences of Consumer Trust in E-Retailing: A Conceptual Framework

Figure 1

A Conceptual Framework for Examining the Determinants andConsequences of Consumer Trust in E-Retailing

Company-relatedfactors

H1a,b,c(Specific) trust in anindividual e-retailer

Website-relatedfactors

ba,H2

H7aH5a

Perceivedtransaction risk

H4

H8

Willingness to buy

bH5

Consumer-relatedfactors

Product-relatedfactors

H3a,b,c

(General) trust inthe Internet as aretail medium

H7b

H6a,b,c

Hc: The complexity of the considered product/service is positively related to the consumersperceived transaction risk associated withmaking a purchase from a particular e-retailer.Online trust can also be theorised to have a directeffect on a consumers intention to purchase online.Intuitively speaking, it is presumed that high trust inthe e-retailer will yield high online purchase intention, while low trust in the e-retailer will reduce a consumers willingness to purchase online. This relationship between trust and online transaction intentioncan be justified by the theories of reasoned action(Ajzen and Fishbein, ) and planned behaviour(Ajzen, ), which assert that an individuals volitional behaviour is primarily the result of the individuals intention to behave. Furthermore, trust isposited by Pavlou () as a salient behavioural beliefthat influences consumer attitude about an e-retailerand subsequent behavioural intentions for onlinetransactions. Hence, consumers would be hesitantabout transacting with an e-retailer that fails to conveya sense of trustworthiness (behavioural belief) becauseof fears of seller opportunism and concerns about theutilisation of the associated Internet infrastructure.On the other hand, trust also creates positive attitudestowards e-retailers, which are likely to reduce fears ofopportunism, attenuate infrastructure concerns, andfavourably influence transaction intentions with eretailers. In fact, Jarvenpaa and Tractinsky () andHoffman et al. (b) argue that lack of trust pre-

vents consumers from engaging in online transactions,and therefore it is hypothesised that:Ha: Increased trust in an individual e-retailer willincrease a consumers willingness to purchasefrom that e-retailer.Hb: Increased general trust in the Internet as aretail medium will increase a consumers willingness to purchase from a particular e-retailer.While actual purchase behaviour is of vital importance to retailers and researchers, it is frequently notpossible or practical to study actual consumer purchasing (Kimery and McCord, ). Such is thecase for this study, and as a result willingness to buyonline is adopted as an approximation for actualonline purchase behaviour. This is consistent withthe theories of reasoned action (Ajzen and Fishbein,) and planned behaviour (Ajzen, ), whichassert that an individuals volitional behaviour is primarily the result of the individuals intention tobehave. Building upon the theory of planned behaviour, Jarvenpaa et al. () also suggest that a consumer may be willing to buy from an e-retailerwhich is perceived as low risk, even if the consumersattitudes towards that merchant are not highly positive. Conversely, a consumer may not be willing tobuy from a merchant perceived as being high risk,even in the presence of positive attitudes towardsthat merchant. According to Jarvenpaa et al. (),

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this direct influence of perceived transaction risk onintention is related to the notion of perceived behavioural control which reflects the degree to which anindividual feels that successfully engaging in a behaviour is completely up to them. In an online context,the perceived risk associated with shopping from ane-retailer may reduce the consumers perception ofcontrol, and the extent to which this occurs mightnegatively influence willingness to buy online. Basedon this, we hypothesise that:H:

Reduced perceived transaction risk associatedwith buying from a particular e-retailer willincrease a consumers willingness to purchasefrom that e-retailer.

The entire set of hypotheses is visually presented,above, in Figure .

AuthorsCaroline Bramall is a postgraduate student at theNottingham University Business School and is conducting her MSc in International Business. Hercurrent research interest and MSc dissertation arecentred on the determinants and consequences ofconsumer trust in online purchasing. She is hopingto investigate this matter further in a PhD thesis.Klaus Schoefer is a lecturer in tourism managementand marketing in the Nottingham UniversityBusiness School. Before that, he worked as amanagement consultant for Accenture. His currentresearch interests revolve around the areas of servicefailure/recovery, word-of-mouth communicationand consumer behaviour in online environments.He has presented his work at a number of scholarlyconferences including those held by the EuropeanMarketing Academy and the InternationalAssociation for Research in Economic Psychology.Sally McKechnie is a lecturer in marketing. Prior tojoining the Nottingham University Business Schoolshe held marketing positions in exhibitions anddirect marketing industries, and a teaching company associateship at the University of Strathclyde.Her research interests are in the areas of customerbehaviour and marketing communications. She haspublished in journals such as the Journal ofMarketing Management, International Journal ofAdvertising, Journal of Marketing Communications,

ConclusionsThe paper makes a contribution to the existing bodyof knowledge within the Internet marketing and ecommerce literatures. The justification for the present paper arose from recognition that theoreticaland empirical research into the construct of trust inonline environments has been very limited, and thatthere remains significant scope for furthering ourunderstanding of the determinants and consequences of consumer trust in e-retailing. While someprogress has been made in developing conceptualframeworks for classifying trust in e-commerce environments, little testable theory has been developed(Romano Jr. and Fjermestad, ). Addressing thisgap within the literature, this paper has presented atestable model describing the relationship betweenthe determinants and consequences of consumertrust in e-retailing.

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