TRUST-BUILDING IN DIGITAL SALES CHANNELS: UNDERSTANDING BUYER PERCEPTIONS OF AUTHENTICITY AND TRANSPARENCY IN ONLINE SELLING

Abstract

This study emphasizes on the importance of trust building in digital sales environments by investigating buyer attitudes towards online sellers in terms of transparency and genuineness. The paper synthesizes existing literature from signaling theory and trust theory in order to develop two grounds which can be tested vis-à-vis the relationship between transparency and authenticity and consumer trust. Data were collected using a structured questionnaire from online buyers via a cross-sectional survey research design. These statistical analyses were undertaken using suitable inferential statistical techniques. Studies have found that when consumers perceive that the information presented by an online seller is truthful, they trust the seller more. Furthermore, it has been discovered that consumers are more likely to have faith in a vendor if they feel that the information given is honest. When sellers provide clear product information and a genuine brand image in their communication they produce a perception of authenticity. This increased authenticity manifests itself in the openness of seller communication, transparency, disclosure and clarity. In such instances consumers tend to trust them more. Digital sales channels rely on the businesses using them to build trust with their customers; it has been concluded by research. Transparency and authenticity are the most crucial tools for this trust-building process. Online market influences which enhance consumer trust will have a significant impact on the consumer's intention to purchase and maintaining long-term relationships between buyers and sellers. This study consequently suggests implications in real-world terms for digital sales managers and marketers who are striving to obtain consumer trust, which is helpful in obtaining a competitive edge in a marketplace which is becoming ever more crowded