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Drakoulis Martakos – University of Athens, Department of Informatics Drakoulis Martakos – University of Athens, Department of Informatics & Telecommunications & Telecommunications Slide Slide 1 Research Context Research Context Information Systems Information Systems Drakoulis Martakos Drakoulis Martakos Assistant Professor Assistant Professor Trust and Virtual Communities Trust and Virtual Communities

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Drakoulis Martakos Assistant Professor. Trust and Virtual Communities. Research Context. Information Systems. Information Systems …. … to refer to information and data handling activities in human organizations … Avgerou & Conford 1993 - PowerPoint PPT Presentation

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Page 1: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 11

Research ContextResearch Context

Information SystemsInformation Systems

Drakoulis MartakosDrakoulis Martakos

Assistant Professor Assistant Professor

Trust and Virtual CommunitiesTrust and Virtual Communities

Page 2: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 22

Information Systems …Information Systems …

… … to refer to information and data handling activities in human organizations … to refer to information and data handling activities in human organizations … Avgerou & Conford 1993Avgerou & Conford 1993

… … are social systems whose behavior is heavily influenced by the goals, values are social systems whose behavior is heavily influenced by the goals, values and beliefs of individuals and groups as well as the performance of technology. and beliefs of individuals and groups as well as the performance of technology. … is not deterministic … does not fit any formal algorithmic … … is not deterministic … does not fit any formal algorithmic … Angell & Angell & Smithson 1991Smithson 1991

… … an integrated, user-machine system for providing information to support an integrated, user-machine system for providing information to support operations, management and decision making in an organization … operations, management and decision making in an organization …

Davis & Olson 1983Davis & Olson 1983

… … is an application of computing and communication technology to meet a is an application of computing and communication technology to meet a defined need. … is to collect, process, store, transfer and disseminate defined need. … is to collect, process, store, transfer and disseminate information. … from and to persons, … measuring and control devices … information. … from and to persons, … measuring and control devices … British Computer SocietyBritish Computer Society

Page 3: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 33

Information Systems ContextInformation Systems Context

PurposefulnessPurposefulness Goal direction and defined needsGoal direction and defined needs Technology Technology Information and its flowInformation and its flow Relationship with some organization as the Relationship with some organization as the

hosting environmenthosting environment Distinct components (procedures, Distinct components (procedures,

technology, people)technology, people)

Page 4: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 44

What, why and howWhat, why and how

Basic ResearchBasic Research

Applied ResearchApplied Research

Social IssuesSocial Issues

PoliticsPolitics

Information SystemsInformation SystemsInformation SystemsInformation Systems

Page 5: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 55

EnvironmentEnvironment

OrganizationOrganization

A possible definition ???A possible definition ???

PeoplePeople

ProceduresProcedures

TechnologyTechnology

Page 6: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 66

I.S. FoundationI.S. Foundation C. W. Churchman (1976): “The design of inquiring systems”C. W. Churchman (1976): “The design of inquiring systems” Checkland P. (1981): “Systems Thinking, Systems Practice”Checkland P. (1981): “Systems Thinking, Systems Practice” Hammer M. (1990): “Re-engineering work: Don’t automate, obliterate” Hammer M. (1990): “Re-engineering work: Don’t automate, obliterate” Davenport T., Short J. (1990): “The New Industrial Engineering: Information Davenport T., Short J. (1990): “The New Industrial Engineering: Information

Technology and Business Process Redesign”Technology and Business Process Redesign” Hammer M.& Champy J. (1993) : “Reengineering the corporation: A Hammer M.& Champy J. (1993) : “Reengineering the corporation: A

manifesto for business revolution”manifesto for business revolution” Winograd T. (1993) “A language/action perspective on the design of Winograd T. (1993) “A language/action perspective on the design of

cooperative work”cooperative work” Walsham G. (1993): “Interpreting Information Systems in organizations” Walsham G. (1993): “Interpreting Information Systems in organizations” Straub W. (1994): “Normative standards for I.S. research”Straub W. (1994): “Normative standards for I.S. research” Walsham G. (1995): “Interpretive case studies in IS research: nature and Walsham G. (1995): “Interpretive case studies in IS research: nature and

method”method” ………………

Page 7: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 77

I.S. communityI.S. community AIS (Association for Information Systems), AIS (Association for Information Systems), ACM (Association for Computer Machinery), ACM (Association for Computer Machinery), IFIP TC11 (International Federation for Information IFIP TC11 (International Federation for Information

Processing)Processing) AIM (Association for Information and Management)AIM (Association for Information and Management) ICIS – International Conference on Information SystemsICIS – International Conference on Information Systems ECIS – European Conference on Information SystemsECIS – European Conference on Information Systems AMCIS – America’s Conference on Information SystemsAMCIS – America’s Conference on Information Systems PACIS – Pacific Conference on Information SystemsPACIS – Pacific Conference on Information Systems RSEEM (Research Symposium on Emerging Electronic RSEEM (Research Symposium on Emerging Electronic

Markets)Markets) McMaster Business Conference (Canada)McMaster Business Conference (Canada)

Page 8: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 88

I.S. Research Design I.S. Research Design

Context Context

DefinitionDefinition

Context Context

DefinitionDefinition

Hypotheses Hypotheses

FormulationFormulation

Hypotheses Hypotheses

FormulationFormulation

Measurement Measurement

InstrumentInstrument

DevelopmentDevelopment

Measurement Measurement

InstrumentInstrument

DevelopmentDevelopmentMeasurement Measurement

Instrument Instrument

ValidationValidation

Measurement Measurement

Instrument Instrument

ValidationValidationEmpirical Empirical

TestingTesting

Empirical Empirical

TestingTesting

Page 9: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 99

Today’s Lecture …Today’s Lecture …

The research question:The research question:

Could we build trust in e_services ???Could we build trust in e_services ???

To come to an answer…To come to an answer… Trust in Business environments & e-commerceTrust in Business environments & e-commerce Trust definition, constructs & building processes Trust definition, constructs & building processes Modeling Trust Formation in E-Commerce SystmesModeling Trust Formation in E-Commerce Systmes

Page 10: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1010

Trust in business environmentTrust in business environment

Relationships Relationships Marketing activities are directed toward Marketing activities are directed toward

establishing, developing and maintaining establishing, developing and maintaining successful relational exchanges successful relational exchanges

Trust Trust Central to all relational exchangesCentral to all relational exchanges Key mediating variable for relationship’s success Key mediating variable for relationship’s success Marketing toolMarketing tool

Page 11: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1111

Commitment & trustCommitment & trust (16, 17, 18 ΟΧΙ) (16, 17, 18 ΟΧΙ)

Relationship commitment and trust are Relationship commitment and trust are key mediating variables of relationship key mediating variables of relationship marketing (KMV model)marketing (KMV model)

ThreeThree determinants of trust determinants of trust Shared values (Shared values (κοινές αξίεςκοινές αξίες)) Communication Communication (επικοινωνία)(επικοινωνία) (non) Opportunistic behaviour(non) Opportunistic behaviour

(μη ωφελιμιστική συμπεριφορά)(μη ωφελιμιστική συμπεριφορά)

Page 12: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1212

Customer Relationships Customer Relationships & & E-Commerce E-Commerce ((1717))

The customer is in control The customer is in control (έλεγχος από τον (έλεγχος από τον καταναλωτή)καταναλωτή)

Customer acquisition is not enoughCustomer acquisition is not enough, ... , ... Relationships …Relationships …

… … new asset categorynew asset category ... νέα κατηγορία πόρων... νέα κατηγορία πόρων

… … a capitala capital ... κεφάλαιο... κεφάλαιο

… … an investmentan investment… … επένδυσηεπένδυση

Page 13: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1313

Customer Relationships Customer Relationships & & E-Commerce E-Commerce ((1818))

Loyalty (Loyalty (αφοσίωση)αφοσίωση) Economic necessity (Economic necessity (οικονομική ανάγκη)οικονομική ανάγκη) Competitive necessityCompetitive necessity (ανταγωνιστική ανάγκη) (ανταγωνιστική ανάγκη)

TrustTrust (εμπιστοσύνη) (εμπιστοσύνη) The sine qua non of the digital economyThe sine qua non of the digital economy (εκ των ουκ άνευ) (εκ των ουκ άνευ) The foundation for loyalty and long-term relationshipsThe foundation for loyalty and long-term relationships

(Θεμέλιο για την αφοσίωση και τις μακροχρόνιες σχέσεις) (Θεμέλιο για την αφοσίωση και τις μακροχρόνιες σχέσεις)

Page 14: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1414

Trust in E-Commerce (1/2)Trust in E-Commerce (1/2)

Literature survey and categorization Literature survey and categorization 5 categories5 categories

Trust in e-commerce system/applicationTrust in e-commerce system/applicationΕμπιστοσύνη στα συστήματα/εφαρμογέςΕμπιστοσύνη στα συστήματα/εφαρμογές

Trust in Internet shopping processTrust in Internet shopping processΕμπιστοσύνη στις διαδικασίες αγορών στο ιντερνετΕμπιστοσύνη στις διαδικασίες αγορών στο ιντερνετ

Trust in vendorTrust in vendorΕμπιστοσύνη στον Εμπιστοσύνη στον ““πωλητήπωλητή””

Trust between individualsTrust between individualsΕμπιστοσύνη μεταξύ ατόμωνΕμπιστοσύνη μεταξύ ατόμων

Firm trust in e-businessFirm trust in e-businessΕμπιστοσύνη στην ηλεκτρονική επιχείρησηΕμπιστοσύνη στην ηλεκτρονική επιχείρηση

Trust dimensionTrust dimensionss:: 1)1) DeterminantsDeterminants 2) 2) ApproachesApproaches 3) 3) ConsequencesConsequences

Page 15: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1515

Trust in E-Commerce (2/2)Trust in E-Commerce (2/2)

Whilst there is evidence of a general congruence regarding the Whilst there is evidence of a general congruence regarding the importance of trust for e-commerce success, most of the current importance of trust for e-commerce success, most of the current literature revolves around the literature revolves around the role of trust for therole of trust for the adoption of e-adoption of e-commercecommerce and does not provide an investigation of the and does not provide an investigation of the way in way in which trust can actually be developed and maintained.which trust can actually be developed and maintained.

The majority of studies mainly focus on understanding the The majority of studies mainly focus on understanding the needneed for trust, its for trust, its antecedentsantecedents and and consequencesconsequences and the and the barriersbarriers contributing to the lack of trust, emphasizing the contributing to the lack of trust, emphasizing the short-term, short-term, transactional perspectivetransactional perspective of e-commerce, and fail to address the of e-commerce, and fail to address the formation of trustformation of trust as a process and as a means for as a process and as a means for long-term long-term relationship building.relationship building.

Page 16: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1616

Trust in E-Commerce (2/2)Trust in E-Commerce (2/2)

Αν και είναι φανερή η ομοφωνία σχετικά με την σημασία της Αν και είναι φανερή η ομοφωνία σχετικά με την σημασία της εμπιστοσύνης για την επιτυχία του ηλεκτρονικού εμπορίου, το εμπιστοσύνης για την επιτυχία του ηλεκτρονικού εμπορίου, το μεγαλύτερομεγαλύτερο μέρος της έρευνας που έχει δημοσιευθεί αφορά στο μέρος της έρευνας που έχει δημοσιευθεί αφορά στο ρόλο της εμπιστοσύνης για την αποδοχή του ηλεκτρονικού ρόλο της εμπιστοσύνης για την αποδοχή του ηλεκτρονικού εμπορίουεμπορίου χωρίς να εξετάζει πως η εμπιστοσύνη μπορεί να χωρίς να εξετάζει πως η εμπιστοσύνη μπορεί να αναπτυχθεί και να διατηρηθεί.αναπτυχθεί και να διατηρηθεί.

Η πλειονότητα των ερευνών εστιάζει στην κατανόηση της Η πλειονότητα των ερευνών εστιάζει στην κατανόηση της ανάγκης για εμπιστοσύνη, τις προϋποθέσεις και τις συνέπειες ανάγκης για εμπιστοσύνη, τις προϋποθέσεις και τις συνέπειες άλλα και τα εμπόδια που συμβάλουν στην απουσία της, με άλλα και τα εμπόδια που συμβάλουν στην απουσία της, με έμφαση στη μικρού χρόνου συναλλακτική μορφή του έμφαση στη μικρού χρόνου συναλλακτική μορφή του ηλεκτρονικού εμπορίου και δεν ασχολείται με το σχηματισμό ηλεκτρονικού εμπορίου και δεν ασχολείται με το σχηματισμό εμπιστοσύνης σαν διαδικασία αλλά και σαν τρόπο δημιουργίας εμπιστοσύνης σαν διαδικασία αλλά και σαν τρόπο δημιουργίας μακροχρόνιων σχέσεων.μακροχρόνιων σχέσεων.

Page 17: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1717

Where can we find trust Where can we find trust relationships (internet) ??relationships (internet) ??

Virtual CommunitiesVirtual Communitiesi.e….i.e….

… … long term computer mediated communication among large long term computer mediated communication among large groups …groups …

… … (1) share a common focused interest (2) get to “know” each (1) share a common focused interest (2) get to “know” each other (3) participate over time …other (3) participate over time …

… … a group of people that meet …a group of people that meet …

… … people with shared interests … e-communication is the people with shared interests … e-communication is the primary way of communication …primary way of communication …

Page 18: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1818

V_communities and V_communities and E_Business, E_Commerce …E_Business, E_Commerce …

E_BusinessE_Business

The complex fusion of business processes, The complex fusion of business processes, enterprise applications and organization structure enterprise applications and organization structure to create a high performance business model …to create a high performance business model …

E_CommerceE_Commerce

Buying and selling over digital media .. Buying and selling over digital media ..

And the connection … :And the connection … :

… … business transaction business transaction relationshiprelationship …. ….

Page 19: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 1919

Customer CommunitiesCustomer Communities

Inter-customer communicationInter-customer communication Sharing experiencesSharing experiences Common interestsCommon interests

Feeling of belongingFeeling of belonging ReferralsReferrals (συστάσεις) (συστάσεις) Social aspect of commercial Social aspect of commercial

transaction. transaction. Enable inter-customer contact Enable inter-customer contact

to promote trust and to promote trust and relationship buildingrelationship building

Page 20: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2020

What is trust?What is trust?

““A set of expectations shared by all those in an A set of expectations shared by all those in an exchange” exchange” - Zucker, 1986- Zucker, 1986

““A willingness to rely on an exchange partner in A willingness to rely on an exchange partner in whom one has confidence”whom one has confidence” - Moorman et - Moorman et al, 1993al, 1993

““An expectation that alleviates the fear that one’s An expectation that alleviates the fear that one’s exchange partner will act opportunistically”exchange partner will act opportunistically”

- Bradach & Eccles, - Bradach & Eccles, 19891989

““A set of expectations that tasks will be reliably A set of expectations that tasks will be reliably accomplished”accomplished” - Sitkin & Roth, - Sitkin & Roth, 19931993

Page 21: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2121

based on: based on:

McKnight et al., McKnight et al., (1996)(1996)Dertouzos et al., Dertouzos et al., (1989)(1989)Ganesan, (1994)Ganesan, (1994)

Shapiro, (1987) Shapiro, (1987)

Zucker, (1986) Zucker, (1986)

Williamson, (1991)Williamson, (1991)……………………………………………………… …………………

based on: based on:

McKnight et al., McKnight et al., (1996)(1996)Dertouzos et al., Dertouzos et al., (1989)(1989)Ganesan, (1994)Ganesan, (1994)

Shapiro, (1987) Shapiro, (1987)

Zucker, (1986) Zucker, (1986)

Williamson, (1991)Williamson, (1991)……………………………………………………… …………………

Trust constructs Trust constructs Disposition to trustDisposition to trust (προδιάθεση για εμπιστοσύνη) (προδιάθεση για εμπιστοσύνη) Institution-based trustInstitution-based trust (εμπιστοσύνη βασισμένη σε κανονιστικό (εμπιστοσύνη βασισμένη σε κανονιστικό

πλαίσιο)πλαίσιο) Trusting beliefsTrusting beliefs (πεποιθήσεις για την εμπιστοσύνη) (πεποιθήσεις για την εμπιστοσύνη)

BenevolenceBenevolence (καλή πρόθεση) (καλή πρόθεση) CompetenceCompetence (ικανότητα/δυνατότητα) (ικανότητα/δυνατότητα) Honesty/IntegrityHonesty/Integrity (τιμιότητα/ακεραιότητα) (τιμιότητα/ακεραιότητα) PredictabilityPredictability (προσδιορισιμότητα/προβλεψιμότητα) (προσδιορισιμότητα/προβλεψιμότητα)

Trusting intentionTrusting intention (πρόθεση για εμπιστοσύνη προς ...) (πρόθεση για εμπιστοσύνη προς ...) Trusting behaviorTrusting behavior (εμπιστοσύνη λόγω συμπεριφοράς ...) (εμπιστοσύνη λόγω συμπεριφοράς ...)

Page 22: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2222

What are the trust-building What are the trust-building processes ??processes ??

Calculative processCalculative process (διαδικασία υπολογισμού) (διαδικασία υπολογισμού) Prediction processPrediction process (διαδικασία πρόβλεψης) (διαδικασία πρόβλεψης) Capability processCapability process (διαδικασία (διαδικασία

ικανότητας/δυνατότητας)ικανότητας/δυνατότητας) Intentionality processIntentionality process (διαδικασία (διαδικασία

πρόθεσης/προδιάθεσης)πρόθεσης/προδιάθεσης) Transference processTransference process (διαδικασία μεταφοράς) (διαδικασία μεταφοράς) Credibility processCredibility process (διαδικασία αξιοπιστίας) (διαδικασία αξιοπιστίας)

Page 23: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2323

Summarizing …Summarizing …Customer trust in an E-Commerce company mightCustomer trust in an E-Commerce company might … …

… … be the result of the six trust building processes.be the result of the six trust building processes.

… … initially based … initially based …

on disposition to trust and on institution-based trust,on disposition to trust and on institution-based trust,

on the trusting beliefs about the business, including on the trusting beliefs about the business, including benevolence, competence, honesty, predictability,benevolence, competence, honesty, predictability,

and on a trusting intention towards the business.and on a trusting intention towards the business.

… … demonstrated by the customer’s trusting behavior anddemonstrated by the customer’s trusting behavior and

… … influenced by communication, shared values and lack of influenced by communication, shared values and lack of opportunistic behavior.opportunistic behavior.

Page 24: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2424

Can we build a model Can we build a model for Trust formation for Trust formation

in E-Commerce Relationships in E-Commerce Relationships ??????

Page 25: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2525

keep theprom ise

m ake theprom ise

enable theprom ise

Electronic servicescapeElectronic servicescape

Compression of time and spaceCompression of time and space An interactive environment for An interactive environment for

service encounters service encounters Integrates the separate but Integrates the separate but

partially overlapping functions partially overlapping functions of:of:

MakingMaking EnablingEnabling KeepingKeeping

promisespromises

Page 26: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2626

Transferenceprocess

Initialtrustingbeliefs

TrustingBeliefs

TrustingIntention

TrustingBehavior

Dispositionto trust

Institution-based trust

Make thepromise

Enable the promise

Keep thepromise

E-Servicescape

Page 27: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2727

C apabilityprocess

keep theprom ise

m ake theprom ise

enable theprom ise

pred ictab ilitycom petence

Pred ictionprocess

C alcu lativeprocess

beliefsconfidence

C redib ilityprocess

Intentionalityprocess

in tegrity/honesty

benevo lence

Page 28: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2828

Trust formation in e-servicescapeTrust formation in e-servicescape

Page 29: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 2929

Can we design the trust formation Can we design the trust formation servicescapeservicescape

??????

Page 30: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3030

Electronic servicescapeElectronic servicescape

Web sites should be transformed to customer-Web sites should be transformed to customer-centric servicescapescentric servicescapes

An environment offering iterative reciprocal An environment offering iterative reciprocal interaction ideal for evolutionary nature of trust interaction ideal for evolutionary nature of trust formation based on the fulfillment of customer formation based on the fulfillment of customer promisespromises

Implemented as a three-dimensional virtual Implemented as a three-dimensional virtual environment using agent technologyenvironment using agent technology

Page 31: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3131

Agents and Virtual RealityAgents and Virtual Reality

How agent and virtual reality technologies How agent and virtual reality technologies can provide an environment for building can provide an environment for building trusting relationships?trusting relationships?

Realistic spatial representation of the Realistic spatial representation of the servicescape servicescape

Consistency with customer’s mental model of Consistency with customer’s mental model of physical experience physical experience

Customer navigation and actionCustomer navigation and action Development, communication and delivery of Development, communication and delivery of

promisespromises

Page 32: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3232

Agent-mediated virtual Agent-mediated virtual servicescapeservicescape

3D virtual shopping mall 3D virtual shopping mall Each store represents an e-commerce companyEach store represents an e-commerce company

populated by populated by avatars representingavatars representing CustomersCustomers SalespersonsSalespersons

Mall agentsMall agents Business agents Business agents

2 levels of interaction – making & 2 levels of interaction – making & enabling promisesenabling promises

3D virtual shopping mall 3D virtual shopping mall Each store represents an e-commerce companyEach store represents an e-commerce company

populated by populated by avatars representingavatars representing CustomersCustomers SalespersonsSalespersons

Mall agentsMall agents Business agents Business agents

2 levels of interaction – making & 2 levels of interaction – making & enabling promisesenabling promises

Page 33: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3333

Agent-mediated virtual Agent-mediated virtual servicescapeservicescape

Virtual RealityVirtual Reality 3D virtual environment comprised of virtual stores3D virtual environment comprised of virtual stores Customer and salesperson avatars Customer and salesperson avatars 3D virtual products with which customers can interact3D virtual products with which customers can interact

Mall agents – Making a promiseMall agents – Making a promise Need identification, merchant & product brokeringNeed identification, merchant & product brokering Present advertising messagesPresent advertising messages Perform searchPerform search Recommend best optionRecommend best option

Business agents – Enabling a promiseBusiness agents – Enabling a promise Product brokering, negotiationProduct brokering, negotiation Provide detailed information on products/servicesProvide detailed information on products/services Preview and interact with virtual productsPreview and interact with virtual products

Page 34: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3434

EnvironmentEnvironment

Page 35: Research Context

Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3535

Agent-mediated virtual Agent-mediated virtual servicescapeservicescape

In progress

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3636

Research Research HypothesesHypotheses

InstitutionInstitution-based -based trusttrust

Initial Initial trusting trusting beliefs - beliefs - TransferreTransferredd

Trusting Trusting IntentioIntentionn

Trusting Trusting BehavioBehaviorr

Trusting Trusting BeliefsBeliefs

Make a Make a promisepromise

Enable a Enable a promisepromise

Keep a Keep a promisepromise

ReputatioReputationn

Disposition Disposition to trustto trust

H3H3H8H8H7H7H5H5

H9H9H6H6

H1H1

H2H2

H4H4H10H10

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3737

H1H1 A consumer’s trusting intention towards an Internet vendor is positively related A consumer’s trusting intention towards an Internet vendor is positively related to the consumer’s disposition to trust. to the consumer’s disposition to trust.

H1a H1a A consumer’s trusting intention towards an Internet vendor is positively related A consumer’s trusting intention towards an Internet vendor is positively related to the consumer’s propensity to trust. to the consumer’s propensity to trust.

H1bH1b A consumer’s trusting intention towards an Internet vendor is positively related A consumer’s trusting intention towards an Internet vendor is positively related to the consumer’s attitude towards e-commerce.to the consumer’s attitude towards e-commerce.

H2H2 A consumer’s trusting intention towards an Internet vendor is positively related to A consumer’s trusting intention towards an Internet vendor is positively related to the consumer’s institution-based trustthe consumer’s institution-based trust

H2a A consumer’s trusting intention towards an Internet vendor is positively related H2a A consumer’s trusting intention towards an Internet vendor is positively related to the perceived (effectiveness of the legal framework regarding) security of to the perceived (effectiveness of the legal framework regarding) security of online transactionsonline transactions

H2b A consumer’s trusting intention towards an Internet vendor is positively related H2b A consumer’s trusting intention towards an Internet vendor is positively related to the perceived (effectiveness of the legal framework regarding) privacy of to the perceived (effectiveness of the legal framework regarding) privacy of consumer data in online transactions. consumer data in online transactions.

InstitutionInstitution-based -based trusttrust

Trusting Trusting IntentioIntentionn

Disposition Disposition to trustto trust H1H1

H2H2

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3838

H3 A consumer’s initial trusting beliefs towards an Internet vendor are H3 A consumer’s initial trusting beliefs towards an Internet vendor are positively related to the Internet vendor’s reputation (transference positively related to the Internet vendor’s reputation (transference process)process)

H3aH3a The Internet vendor’s perceived benevolence is positively related The Internet vendor’s perceived benevolence is positively related to the Internet vendor’s reputation.to the Internet vendor’s reputation.

H3bH3b The Internet vendor’s perceived competence is positively related to The Internet vendor’s perceived competence is positively related to the Internet vendor’s reputation.the Internet vendor’s reputation.

H3cH3c The Internet vendor’s perceived integrity/honesty is positively The Internet vendor’s perceived integrity/honesty is positively related to the Internet vendor’s reputation.related to the Internet vendor’s reputation.

H3dH3d The Internet vendor’s perceived predictability is positively related The Internet vendor’s perceived predictability is positively related to the Internet vendor’s reputation.to the Internet vendor’s reputation.

Initial Initial trusting trusting beliefs - beliefs - TransferreTransferredd

ReputatioReputationn

H3H3

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 3939

Empirical testingEmpirical testing

Laboratory experimentLaboratory experiment Simulation of an e-servicescape using agent and Simulation of an e-servicescape using agent and

virtual reality technologies to provide a virtual e-virtual reality technologies to provide a virtual e-commerce customer experiencecommerce customer experience

Subjects: University students and academic staff, Subjects: University students and academic staff, acting as customers of the virtual e-commerce acting as customers of the virtual e-commerce environmentenvironment

Data collection through the use of a questionnaire Data collection through the use of a questionnaire – measurement instrument – measurement instrument

In progress

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 4040

Measurement instrumentMeasurement instrument

An instrument comprised of measures for each An instrument comprised of measures for each construct has been developed to empirically assess construct has been developed to empirically assess the hypothesized causal relationships the hypothesized causal relationships

Measures were developed to reflect the definition and Measures were developed to reflect the definition and the dimensions of constructsthe dimensions of constructs

Multiple item scales were generated, based on Multiple item scales were generated, based on Churchill’s paradigm (1979). Churchill’s paradigm (1979).

Items were developed Items were developed as suggested by Straub (1989)as suggested by Straub (1989) borrowed from borrowed from existing validated measuresexisting validated measures adapted with slight modifications where necessaryadapted with slight modifications where necessary

A pilot test will be conducted for A pilot test will be conducted for measurementmeasurement instrument validationinstrument validation

In progress

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 4141

Empirical testingEmpirical testing

Laboratory experimentLaboratory experiment

Simulation of an e-servicescape using agent and Simulation of an e-servicescape using agent and virtual reality technologies to provide a virtual e-virtual reality technologies to provide a virtual e-commerce customer experiencecommerce customer experience

Subjects: University students and academic staff, Subjects: University students and academic staff, acting as customers of the virtual e-commerce acting as customers of the virtual e-commerce environmentenvironment

Data collection through the use of a questionnaire Data collection through the use of a questionnaire – measurement instrument – measurement instrument

In progress

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 4242

Laboratory experiment: Laboratory experiment: LimitationsLimitations

Construction of experiment, controlled conditionsConstruction of experiment, controlled conditions

Context:Context: Restricted laboratory setting, not Restricted laboratory setting, not equivalent to real-world environmentequivalent to real-world environment

Sample: Sample: Computer science background, frequent Computer science background, frequent users of Internetusers of Internet

Validity of findings Validity of findings

Generalisation of findingsGeneralisation of findings

In progress

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Drakoulis Martakos – University of Athens, Department of InformaticsDrakoulis Martakos – University of Athens, Department of Informatics & Telecommunications& Telecommunications Slide Slide 4343

Questions ???Questions ???