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The influence of consumers' consciousness of institutional factors on initial trust building

In order to induce new comers'confidence in on-line transaction, e-tailers provide trustworthy information in the web sites, such as warranty, privacy policies, assurance, and related statements. Nonetheless, the effectiveness of this information has not been fully understood. An artificial legal consultation service website was built to assist look into this issue by employing signal theory and the perspective of trust transference. The results indicate the critical intermediary role of warranty perception in the process of initial trust building. Only if consumers believe and credit the trustworthy information about assurance and web seal, it could evoke sufficient trust necessary to make an on-line transaction. Furthermore, trusted third party web seal on web pages may also be an effective way to build consumer trust. Consequently, e-tailers should devote time to apply qualified signals of assurance and trusted third party seal for attracting consumers'confidence and subsequently build consumers'initial trust on e-tailers.