Empirical Examination Of Effects Of Web Assurance Seals On Perceived Level Of Assurance And Price Tolerance With A Focus Being Placed On CPA-Associated Seals

Abstract

Since the emergence of electronic commerce (e-commerce), the trustworthiness of commercial web sites has been one of the most important, persistent, and interesting issues both in industry and academia. Not surprisingly, web assurance seals have attracted considerable attention among e-commerce vendors due to its potential role as a key factor in the formation of initial trust. However, recent evidence indicates that web assurance seals fail to enhance online purchasing behavior in spite of rosy promises from seal providers. This research examines the mechanism of perceived assurance level formulation through the use of web assurance seal, seeking possible answers to whether Certified Public Accountant (CPA)-associated seals have more effect on the perceived assurance levels than non-CPA-associated seals. As such, the success of web assurance seal is contingent on multiple factors including the attributes of the assurance seal providers, the perceived value of the seal, and the familiarity of the web assurance seal. Overall, this article contributes to both practice and research by shedding light on the largely ignored phenomenon, namely, of web assurance seal failure and by exploring fundamental factors affecting web assurance seal initiative’s success.