Consumer's Trust Formation in Electronic-Commerce: A Conceptual Model

Based on previous literature, this paper proposes a conceptual model about consumers' transaction in e-commerce. In this model, we suggest that there are external and internal factors influence consumers' transaction trust in e-commerce. External factors include vendor's trustworthiness and internet intermediary's technical reliability. Internal factors include consumer's perceived gain and perceived risks in the e-commerce. The paper goes on to analysis the factors and the way by which they influence the consumer's transaction trust. Propositions are suggested according to the analysis. Lastly, we discuss the implications of this conceptual model for researchers and sellers' practice.