The Effect of Trust Mechanisms in Online Retail Market

Abstract

Based on the data of Taobao, this paper examines the effectiveness of trust strategies. The results show that: price produces a negative impaction on line trading, which is moderated by trust strategies. Credit scoring, baby match description, customer protection service and seven days return produce a significant positive impaction on line trading, and baby match description has the biggest influence. Other special services such as 24 hours delivery, presentation of freight and charity baby don’t affect the line trading significantly. Credit payment doesn’t affect the line trading significantly, but freight free has different effect on online trading whether guarantee mechanism has or not. Credit scoring mechanism and customer protection service exist complementary relationship. According to the result, the paper proposes strategy recommendations to improve the trust path of online transactions.