Consumer Trust towards an Unfamiliar Web Merchant

Our research intends to provide a general better understanding of consumer on-line purchasing behaviour. This paper examines consumers’ perception of a web merchant trustworthiness within the framework of signaling theory. Although consumer researchers were interested in a numerous economic theories (transaction cost theory, agency theory,…), little attention has been given to the signaling theory (Boulding and Kirmani, 1993). Signaling mechanisms could be, however, relevant to predict consumer behaviour under conditions of information asymmetry. The focus of this study is consumers’ response to three types of potential signals: word of mouth, trust seals and testimonies of satisfied past-buyers.