Trust, Social Presence and Customer Loyalty in Social Virtual Worlds

Social virtual worlds (SVWs) have drawn substantial attention in business and academia. This research focuses on how trust affects customer loyalty in the SVW setting. Specifically, this study pinpoints how trust in SVW staff and other users influences the continuous use and purchase behaviour in SVWs. Additionally, we examine the influence of social presence on the two aspects trust and customer loyalty. The research model is tested with PLS using a sample of 2111 Finnish Habbo users. The two facets of trust are important antecedents on customer loyalty, yet differing in their effect. Social presence is a strong determinant of trust but also a direct antecedent of customer loyalty. Together, trust and social presence account for a considerable amount of variance in continuous use and purchase intention

User Acceptance of Electronic Commerce: Contributions from the Bled eConference

User acceptance of electronic commerce continues to be a popular topic at the Bled eConference. The paper reviews the past contributions of the conference in this specific area. The review deals with those studies that have an empirical and quantitative component, and those studies where the emphasis has been on testing theories of user acceptance. The paper establishes three phases in which Bled delegates have gradually extended generic user acceptance models to deal with issues of electronic commerce. The first phase (20012003) is one of theory application. The second phase (2004-2007) is one of theory extension. In the third phase, (2008-2011), Bled delegates move beyond traditional models and adopt alternative theoretical approaches. The review ends with three promising avenues for further research in electronic commerce

Digital Natives’ Purchasing Behavior in Habbo Hotel

Purchasing virtual products and services in virtual worlds is a rapidly growing form of online consumer behavior, especially among the digital natives. The paper examines why teens spend real money in virtual goods and services. We empirically investigate the reasons for virtual purchasing behavior in world‟s most popular social virtual world, Habbo Hotel. Using content analysis, we classify the reasons for purchasing into four higher order gratifications, namely elevated experience, hedonic and social factors as well as functional activities. The results demonstrate that virtual purchasing is a vehicle for enhancing and customizing the valued aspects in the user experience

Generating Procedural Controls to Facilitate Trade: The Role of Control in the Absence of Trust

Over the years, Trust has been recognized in the Bled community as a key enabling factor to stimulate Electronic Commerce. Authors have discussed formal aspects of trust, the role trust plays in the adoption of both B2B and B2C Electronic Commerce, as well as mechanisms to build trust and/or overcome the lack of it. This article first provides a brief overview of the Trust-related articles in the Bled eConference. It then focuses on one specific aspect of the facilitation of trade in absence of trust: the development of procedural controls that enable Electronic Commerce at arms’ length, summarizing the contributions of the authors on this theme at the Bled Conference since the early 1990s. The paper concludes with the authors’ current view on developing procedural controls, focusing on the design process itself, which is often a rather lengthy process consisting of trial-and -error. Here a more analytical approach is proposed to the identification of control requirements for inter-organizational procedures. The approach involves abstracting the process to identify its basic deontic elements. A model checking approach is then applied to identify needed controls

Integrating Social Networking Sites into e-Commerce Website: A Study on Online Consumer Behaviour

The high interactivity rate in social networking sites (SNSs) has drawn the attention of many researchers and businesses. However, this has at the same time made it difficult for businesses to decide where to build their web presence - in their e-commerce website or in SNSs. Therefore, this project, embracing the methodology of rapid application development (RAD), aims to study the impact on the online consumers’ behaviour, particularly in their perceived trust, word-of-mouth (WOM) effect among them, and their purchase intention in the e-commerce website, by integrating Facebook social elements into the website interface of an e-commerce website, ToHerHeart.com. A research online survey was developed and distributed before and after this integration. The research outcome shows that the positive impact of this social integration was generally not significant to accept the project hypotheses; integrating Facebook social elements into ToHerHeart.com e-commerce website interface does not really increase the online consumers’ perceived trust, WOM effect among them, and their purchase intention in ToHerHeart.com. The research outcome also suggests that businesses build their e-commerce website and at the same time set up their business webpage in SNSs to optimize the business advantages of both and minimize the overall disadvantages. Recommendations for future research were also outlined in this paper

The Law of One Price and Virtual Worlds

Price convergence and purchasing power parity are two important foundations to international trade theory. Yet there is still no consensus on their existence, despite numerous studies. While the debate over price convergence and purchasing power parity continues, the last several years have seen a substantial rise in the use of virtual worlds. Virtual worlds are interactive digital environments where individuals with an internet connection can come together to communicate, cooperate and trade. Virtual worlds create smaller copies of the real world. These copies lack many of the complexities found in the real world. This feature makes virtual worlds a unique setting for studying price convergence and other economic phenomena. This dissertation begins by surveying the extant research on virtual worlds throughout the social sciences to illustrate the usefulness of virtual worlds in economics research. In the second chapter price convergence is tested in one of these virtual worlds. Insight gained from the second chapter is used in the final chapter to alter an existing purchasing power parity model. This altered model is used to estimate the effect transportation costs on purchasing power parity equilibrium

The Role of Social Network Websites in Consumer-Brand Relationship

This research explored the phenomenon of online social network in the context of consumer-brand relationship. The specific research objectives were: (a) to examine whether perceived benefits of a Brand’s Social Network Website (BSN) predict BSN relationship quality; (b) to investigate whether perceived benefits of BSN predict perceived relationship investment; (c) to examine if online social connection strengthens the relationship between perceived benefits of BSN and BSN relationship quality; (d) to examine if experience with BSN strengthens the relationship between perceived benefits of BSN and BSN relationship quality; (e) to investigate whether BSN relationship quality predicts brand relationship quality; (f) to examine whether BSN relationship quality predicts customer loyalty toward BSN; (g) to investigate whether perceived relationship investment predicts brand relationship quality; (h) to investigate whether brand relationship quality predicts customer loyalty toward BSN; (i) to examine whether brand relationship quality predicts customer loyalty toward the brand; and (j) to investigate whether customer loyalty toward BSN predicts customer loyalty toward the brand. This research employed a mixed-method approach to overcome the weaknesses in a single method approach and to provide stronger evidence for a conclusion. First, qualitative analyses explored the unique context of BSN, which was not much investigated in prior research. Specifically, Brand Pages of 22 apparel brands and 10 restaurant/coffeehouse brands, chosen as research settings, were investigated to validate the proposed research constructs. Second, quantitative analyses utilized an online self-administered cross-sectional survey method. A total of 501 complete responses collected from consumer panels of marketing research firm were used. The results suggested that BSN benefits are important drivers of relationship mediators (i.e., BSN relationship quality, perceived relationship investment), which in turn positively influence BRQ. However, functional benefits did not influence BSN relationship quality. In addition, while customer loyalty toward BSN was predicted by both BSN relationship quality and BRQ, it did not positively influence the loyalty toward the brand. Specifically, BSN loyalty did not influence behavioral loyalty and negatively influenced willingness to pay price premium. Further discussion about the results, implications, and suggestions for future research were provided

Consumer motivations for social media usage and its impact on customers' trust and long-term relationships

New challenges and opportunities have recently arisen for companies’ relationships with customers as a result of the increasing prevalence of social media. By enabling companies to build online communities, social media allow marketers to access information about consumers, identify consumers’ needs, and gain direct consumer feedback. Thus, social media can be a very important and helpful tool for interacting and communicating with customers. In order to sustain such relationships for the long term, however, efforts must be centred around building consumer trust and commitment.This study investigates the role of social media based communities in building relationships with consumers, and the influence of such communities on consumers’ attitudes and behaviours. Specifically, the study investigates whether such influences can lead to trust, commitment, and loyalty towards the organisation. Drawing on Uses and Gratification Theory, Consumption Values Theory, and the Commitment-Trust Theory, the study examines the relationship between consumers using social media channels, trusting these channels, and trusting the organisation that owns these channels.Adopting a positivist deductive approach, quantitative data was collected via a survey strategy. A questionnaire targeting telecommunications company fan pages users in Saudi Arabia was distributed through Twitter and Facebook with help from people who have many followers/likes such as celebrities. More than 700 responses were collected, of which 522 were usable for factor analysis.Based on the results, a cognitive behavioural model was established in relation to social media uses and gratifications, perceived values of social media fan pages, organisational trust, commitment, and loyalty. Users who perceived utilitarian benefits from following a company’s fan pages were likely to trust these pages, whereas perceived hedonic and social benefits did not have an influence on trust towards organization’s fan pages. The findings additionally indicated that consumers who trusted the organization’s fan pages were likely to trust the company. Therefore, telecommunication companies’ fan page users who perceived trust were expected to be committed and loyal to the company, which would consequently, lead to more frequent and larger purchases. The findings contribute to marketing theory and suggest ways in which marketers can tailor companies’ web presence for more effective communication and relationship-building with customers