The Internet and all other electronic means have changed our way of doing business, and many of our businesses and transactions today are conducted online. Yet consumers marketers fight for building trust between one other. Other than being able to touch and “test” products physically, it is now possible to have all types of contacts and exchanges via the Internet.
Therefore, consumer trust in online environment is of great importance, and understanding it is the aim of this research. The specific purpose of this thesis is to gain a better understanding on how to build and maintain consumer trust in the online environment and its resulting change in the attitude of the consumers.
The web is the most selfish environment in the world, says Daniel Rosenweig, chief operating officer of Yahoo „People want to use the internet whenever they want, how they want and for whatever they want‟. It is not price transparency that makes internet customers so powerful, it is also the way the net makes it easy for them to be fickle. If they do not like a website, they swiftly move on (The Economist, 2004).
Two factors that significantly contribute to the success of e-business are the trust people place on the online business and how secure they feel in transacting business on the internet. Trust is something that has to be earned over a period of time. In the real world, trust is gained both by observing physical structure of the organisation as well as by the third party recommendations. Trust brings in repeat