Value Congruence and Trust Online: Their Impact on Privacy and Price Premiums

by Joseph Cazier

Description

The rise of the internet as a global trading platform has focused increased attention on trust in business relations. Ebay is just one example of the thousands of online auctions and exchanges that facilitate transactions among parties who may not be able to directly communicate. In these exchanges, trust is facilitated through the use of rating systems. Research indicates that trust is positively related to consumer willingness to pay higher prices and disclose information.

This pioneering study shows that in addition to trust, a value congruence strategy can be employed to charge higher prices and increase disclosure of personal information. Value congruence reflects shared beliefs between the firm and the consumer.  In fact, the author finds that value congruence is more powerful than trust in fostering these desired outcomes.

Value Congruence and Trust Online is must reading for any manager concerned with pricing, privacy issues, and marketing strategy online. Marketing academics will also find great value in the rigorous and detailed method and model employed. The results are a significant advance in our understanding of how to effectively market online.



 

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