Trust And Risk Flashcards
What is the mediating relationship between trust and risk?
It is when the existence of trust reduces the perception of risk- gefen
Morgan and hunt- say that trust reduces uncertainty. They argue that trust has a direct effect on risk and decreases decision making uncertainty because the trustor has confidence in the trustees trustworthiness
Nicolau and McKnight 2006 use this model to look at e-trust
What is the moderating relationship between trust and risk?
Trust behaviour is different when the level of risk is high or low. When risk is high trust is relevant but when risk is low trust is not relevant.
Grazioli and wang 2001 tested the moderating relationship in e-trust but the data did not support it
How are trust and risk linked?
Conventional trust literature stresses that trust occurs only in a condition of uncertainty. If there is no risk then trust is not necessary. Risk is an antecedent to trust because the need for trust arises only in a risky situation, which makes the concept of risk important in terms of trust
Mayer et al. It is unclear if risk is an antecedent of trust, is trust or is an outcome of trust
What is the threshold model of trust and risk?
If the level of trust surpasses the perceived risks, then the trustor will engage in a risky relationship.
Mayer et al. They argue that me does not need to risk anything in order to trust, however, one must take a risk in order to engage in a trusting action.
Trust- the willingness to assume risk
Trusting behaviour- assuming risk
Hence- trust will lead to risk taking if the trust exceeds the threshold of perceived risks.
Which studies have been done on trust and risk in e-commerce and what has not been done?
Bart et al- are the drivers of online trust the same for all websites?
He argues that financial and information risk effects trust online
Belanger et al-
Looked at privacy risk and data sharing
Relational risk- lack of knowledge or expertise
General risk- poor business performance
