Perhaps the two most important perceptions about a company that can influence customer trust are its perceived size and perceived reputation. Perceived size indicates the perception by customers of the company’s size (such as number of stores, employees, products and services offered, etc.) but not necessarily the actual size of the company. Research both online and off-line has shown that a large perceived size may increase trust in the company (Doney & Cannon, 1997; Jarvenpaa et al., 2000). This may be because customers assume that a large company has the capabilities necessary to provide them with the services and support they want (Chow & Holden, 1997). A large perceived size may also indicate to customers that the company will be able to compensate them in the case of product failure (Jarvenpaa et al., 2000). Online, there is some evidence that perceived size is also important in the development of trust, but its effect may depend on the type of company (Jarvepaa et al., 2000; Pavlou, 2003).
Perceived reputation is the degree to which people believe in both the company’s honesty and concern towards its customers. A positive perceived reputation of the company may increase customer trust in it (Doney & Cannon, 1997; Jarvenpaa et al., 2000; Koufaris & Hampton-Sosa, 2003a). In the highly competitive world of online commerce, building a positive reputation can be very difficult and expensive. Establishing a continuous and positive relationship with its customers can help a company build a solid reputation in the market, hence the popularity of Customer Relationship Management (CRM). At the same time, a positive reputation can be easily destroyed by a few missteps by the firm, in which it is perceived to be acting in an unfair, dishonest, or otherwise disreputable manner.
One of the impacts of the use of the Web for commerce has been in the area of customization (Roth, 1998). Technologies such as recommender systems and personalized home pages enable companies to provide customized content to their Web users.
The trend, however, has moved beyond customized information into the realm of mass customization of physical products. Companies like Dell, Nike (with NikeID.com), and Reflect.com allow customers to customize their products (computers, shoes, and cosmetics respectively) through the companies’ Web sites. Using the latest Internet-integrated manufacturing and distribution technologies companies can manufacture and deliver those customized products with minimal cost increases (Zipkin, 2001).
Perceived willingness to customize is the customer’s perception regarding the readiness of the company to provide customized products or services to its customers. Research has shown that perceived willingness to customize can be a positive antecedent to customer trust in the company both online and off-line (Doney & Cannon, 1997; Koufaris & Hampton-Sosa, 2003a). This is partly because customers see a company that can customize its products and services as one with enhanced capabilities (e.g., manufacturing, logistical, distribution), a key antecedent of customer trust. Also, in order for mass customization to work, customers are asked to communicate with the company and provide it with specific information as to how they want their product customized. The result is that customers feel that they are being “heard” by the company and their needs are being addressed on a personal level. This can increase the customers’ trust in the company.