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Computers in Human Behavior 56 (2016) 225e237

Contents lists available at ScienceDirect

Computers in Human Behavior


journal homepage: www.elsevier.com/locate/comphumbeh

Full length article

Social presence, trust, and social commerce purchase intention: An


empirical research
Baozhou Lu a, *, Weiguo Fan b, Mi Zhou b
a
School of Economics & Management, China University of Petroleum, 66 West Chang Jiang Rd, Qingdao, 26655, China
b
Pamplin College of Business, Virginia Polytechnic Institute and State University, 3007 Pamplin Hall, Blacksburg, VA 24061, USA

a r t i c l e i n f o a b s t r a c t

Article history: Lacking the presence of human and social elements is claimed one major weakness that is hindering the
Received 30 May 2015 growth of e-commerce. The emergence of social commerce might help ameliorate this situation. Social
Received in revised form commerce is a new evolution of e-commerce that combines the commercial and social activities by
18 November 2015
deploying social technologies into e-commerce sites. Social commerce reintroduces the social aspect of
Accepted 29 November 2015
Available online 14 December 2015
shopping to e-commerce, increasing the degree of social presences in online environment. Drawing upon
the social presence theory, this study theorizes the nature of social aspect in online SC marketplace by
proposing a set of three social presence variables. These variables are then hypothesized to have positive
Keywords:
Social commerce
impacts on trusting beliefs which in turn result in online purchase behaviors. The research model is
Social presence examined via data collected from a typical e-commerce site in China. Our findings suggest that social
Online social commerce marketplaces presence factors grounded in social technologies contribute significantly to the building of the trust-
Online trust worthy online exchanging relationships. In doing so, this paper confirms the positive role of social aspect
Purchase intention in shaping online purchase behaviors, providing a theoretical evidence for the fusion of social and
commercial activities. Finally, this paper introduces a new perspective of e-commerce and calls more
attention to this new phenomenon of social commerce.
© 2015 Elsevier Ltd. All rights reserved.

1. Introduction ratings, comments, social proof, and reciprocity applications


(Huang & Benyoucef, 2013; Olbrich & Holsing, 2011), enhance
A notable difference between online and offline markets that is customer participation and allow them to collect socially rich in-
hindering the growth of e-commerce is the decreased presence of formation, resulted in a more trustworthy and sociable online
human and social elements in the online environment (Cyr, Head, transaction environment. Although these positive influences have
Larios, & Pan, 2009; Hassanein, Head, & Chunhua, 2009). This been widely recognized, the social aspect of e-commerce has not
lean nature of online environment is often mentioned one of the been completely understood, nor their impacts on purchasing
major drawbacks of e-commerce (Pavlou & Gefen, 2004). It is decision.
claimed to eliminate social cues (e.g., body language), impose In this study, Social Presence Theory (SPT) is employed as the
additional unique risks (Lee, 1998), and consequently impair the theoretical lens to understand the impacts of social shopping fea-
building of the trustworthy atmosphere online. However, this sit- tures in online SC marketplaces. To account for various aspects of
uation has been greatly improved recently by incorporating Web social commerce, a multi-dimensional conceptualization of social
2.0 capabilities into the e-commerce website. This new evolution is presence is proposed based on previous studies (Biocca, Harms, &
commonly referred to as the birth of social commerce (SC) (Huang Burgoon, 2003; Caspi & Blau, 2008; Shen & Khalifa, 2009). Then
& Benyoucef, 2013; Shin, 2013; Yadav, De Valck, Hennig-Thurau, their influences on purchasing decision are examined in a research
Hoffman, & Spann, 2013). New design features built upon social model by using trust as the key mediating variable. In sum, this
media and Web 2.0 technologies, including recommendation lists, study tries to offer several potential contributions.
First, it re-conceptualizes social presence as a multi-
dimensional construct in social commerce context, and thus,
* Corresponding author. overcomes the limitations of the unidimensional conceptualization
E-mail addresses: bzlu@upc.edu.cn (B. Lu), wfan@vt.edu (W. Fan), mizhou@vt. in literature. In doing so it sheds light on the nature of social aspect
edu (M. Zhou).

http://dx.doi.org/10.1016/j.chb.2015.11.057
0747-5632/© 2015 Elsevier Ltd. All rights reserved.
226 B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237

in SC context by using SPT, contributing a set of social factors that transactions are usually facilitated and guaranteed by structural
have impacts on trust. Second, it offers a full understanding on factors such as escrow services and credit card guarantees (Fang
online purchase behaviors by considering the influences of both et al., 2014; Pavlou & Gefen, 2004). Social technologies reintro-
social factors and structural factors. Finally, it discloses the impor- duce the social side into online purchasing process, making online
tance of the social aspect on online purchase behaviors, calling purchasing a more social experience. They also greatly increases
more attention to this relatively new but important research area in the firm ability to directly initiate and manage social interaction
future. either impossible or too costly in the past (Chen, Wang, & Xie,
The rest of the paper is organized as follows. We begin with the 2011). Thus, while e-business concentrates more on business
theoretical development, including discussing the emergence of goals, SC is more oriented toward social goals, such as networking,
social commerce phenomenon and proposing a multi- collaborating and information sharing, with a secondary focus on
dimensional model of social presence. Next, we present the shopping (Wang & Zhang, 2012). Online buyers are able to get ac-
research model and the hypotheses, followed by a description of cess to social knowledge and experiences to support them in better
the research methodology. The paper then presents the research understanding their purchase purposes, and in making more
results, which is followed by a discussion of key findings and informed and accurate decisions (Dennison, Bourdage-Braun, &
contributions, as well as the implications for both research and Chetuparambil, 2009).
practice. Finally, we discuss the limitations of this study, the While prior studies offer insights on how social interactions
possible direction of future research, and provide the concluding shape buyer behaviors, such as, word-of-mouth (WOM), obser-
remarks. vational learning, and social support (Amblee & Bui, 2011; Chen
et al., 2011; Trusov, Bucklin, & Pauwels, 2009), they may have
2. Theoretical background and conceptual development overlooked the overall effects of the social context (Kreijns,
Kirschner, & Jochems, 2003). In SC, buyers are able to get more
2.1. Social commerce social cues to support their purchasing decisions by collecting
more information from the communities, by observing the actions
As a relatively new phenomenon, social commerce has evolved of other buyer, or by interacting with online sellers. Huang and
quickly in practice (Barnes, 2014; Kim & Park, 2013; Wang & Zhang, Benyoucef (2013) proposed a conceptual model to summarize
2012). A recent report by McKinsey (Chui et al., 2012) estimates that the social design features of SC along four layers including the
the use of social technologies can contribute $900 billion to $1.3 individual, conversation, community and commerce levels, shown
trillion in value, and that up to 1/3 of consumer spending is subject in Table 1. They argued that the key distinction between e-com-
to influence from social commerce. Another report by Barclays merce and social commerce is that the former usually only sees an
(2012) indicates that by 2021 nearly half of the UK consumer individual layer while the latter usually sees a community built on
population will be engaged in social commerce. The term of social conversation. We argue that the social design features applied in
commerce was first coined by Yahoo in 2005 to denote online these four layers enrich social information, make buyers feel more
places where people can share experiences, get advices from one connected with others, and finally enhance a social context online.
another, find goods and services and then purchase them (Mardsen, SPT has been indicated a suitable theoretical lens for under-
2010). Its early applications can be found in the late 1990s when standing the social context in e-commerce. SPT suggests that so-
Amazon introduced the rating and review systems. The increased cial presence is built upon signals transmitted in a communication
popularity of social technologies over last couple of years, including medium, such as virtual agents (Hess, Fuller, & Campbell, 2009),
social media, web 2.0 and social networks, has spawned an IT-enabled human-like interaction (Pavlou, Liang, & Xue, 2007),
expanded range of social commerce tools and opportunities (Liang socially-rich text, personalized greetings (Gefen & Straub, 2004),
& Turban, 2011; Mardsen, 2010). chat (Qiu & Benbasat, 2005) or message boards (Cyr, Hassanein,
Recently, SC generally refers to as the delivery of e-commerce Head, & Ivanov, 2007). Thus, the social design features will
activities and transactions via the social media environment (Liang convey various types of social presence (seen in Table 1) that will
& Turban, 2011). It is viewed as a new evolution of e-commerce be discussed in next section.
(Huang & Benyoucef, 2013; Wang & Zhang, 2012). Liang and Turban
(2011) summarized three major attributes of SC: social technolo- 2.3. A multi-dimensional conceptualization of social presence in
gies, community interactions, and commercial activities. Thus, SC social commerce context
can be considered a subset of e-commerce that involves using social
technologies to assist e-commerce transactions and activities The concept of social presence is grounded in social presence
(Yadav et al., 2013). In essence, SC is a combination of commercial theory that elaborates the ability of a communication medium to
and social activities (Liang & Turban, 2011; Zhou, Zhang, & transmit social cues (Short, Williams, & Christie, 1976). Defined as
Zimmermann, 2013). Traditional e-commerce sites, such as “the salience of the other in a mediated communication and the
Amazon and Taobao, have added social applications and content to consequent salience of their interpersonal interactions” (Short
help people to connect where they usually buy. Considering the et al., 1976), SP is viewed as an inherent quality of a communica-
dominance of marketplace-based e-commerce like Amazon and tion medium. From a psychological standpoint, SP also closely re-
Taobao, we try to uncover how social factors engendered by social lates to intimacy and psychological closeness (Short et al., 1976). In
applications shape the beliefs and behaviors of buyers in online SC this perspective, SP is often measured as the perceived warmth,
marketplaces. conveying a feeling of human contact, sociability, and sensitivity
embodied in a medium (Rice & Case, 1983). Most of prior e-com-
2.2. Social aspect of online shopping merce research has adopted unidimensional model of SP, focusing
on the capability of website to convey a sense of human warmth
Shopping has always been a social activity. Consumers tend to and sociability.
be influenced by their social interactions with others when making However, this unidimensional conceptualization of SP might
purchase decisions (Godes et al., 2005). E-commerce focuses more not be suitable for virtual community, where people not only
on maximizing efficiency and the one-way interactions between interact with the computer mediated medium, but also need to
customers and the system (Huang & Benyoucef, 2013). Online communicate with other members and immerse themselves into
B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237 227

Table 1
Social design features and social presence (adapted from Huang & Benyoucef, 2013).

Design principle Design features Amazon Taobao Dimension of SP

SP of web Perception of others SP of interaction

Individual Personal profile √ √ △ e e


Context profile √ √ △ e e
Activity profile √ √ △ e e
Conversion Social content presentation √ √ △ e e
Topic focus √ √ △ △ e
Notification   e △ e
Information sharing √ √ △ △ e
Community Community support  √ e △ e
Connection  √ e △ e
Relationship maintenance   e △ e
Commerce Group purchase  √ e △ e
Social proof √ √ e △ e
Authority √ √ e e
Reciprocity √ √ △ △ e
Participation   e e e
Social ads and application   e e e
Messenger tools with sellers  √ e e △

√ ¼ covered,  ¼ uncovered, △ ¼ relevant, e ¼ irrelevant.

the virtual community. Thus, a multidimensional conceptualiza- presentation features and continuous participation in online dis-
tion of SP is advocated. Shen and Khalifa (2009) propose a three- cussion. In SC, a few social applications increase the awareness of
dimension model of SP including awareness, affective SP and other buyers who might feel interests in the same product or topic.
cognitive SP. Caspi and Blau (2008) indicate three different For instance, social proof - a type of social application to resolve
conceptualizations of SP for online learning communities, i.e., as customer uncertainty about what to do or buy (e.g., the option of
perception of other given the subjective quality of a medium, as “customers who bought this also bought”) - will give buyers a hint
self-projection onto the group, and as social identification. Tu on the existence of other buyers and their purchasing interest.
(2002) suggests SP in online learning communities should have WOM (or recommendation and review system) can also increase
three dimensions: social context, online communication, and perception of other online buyers. WOM valence indicates the
interactivity. Since social commerce is seen as the combination of percentage of prior buyers who hold positive or negative opinions,
commercial and community activities (Huang & Benyoucef, 2013; and WOM volume plays an informative role by increasing the de-
Liang & Turban, 2011), SP in social commerce should also be gree of buyer awareness (Chen et al., 2011). Revealing observational
conceptualized as a multi-dimensional construct. learning information (Chen et al., 2011), which contains the
Based upon prior research, we propose a three-dimension discrete signals expressed by the actions of other consumers (e.g.
model of SP, named respectively, SP of the web, perception of the percentage of adoption, wish list, Facebook “share” and “Like”
others, and SP of interaction with sellers. Our conceptualization is button), will also let a buyer be aware of others buyers and their
akin to the SP model of Caspi and Blau (2008), which also contains actions. Other social applications relevant for perception of others
three factors: perception of the others, medium's impersonality, are suggested in Table 1, including reciprocity, group purchase,
and medium as interaction enabling. connection, etc. Since buyers in a SC marketplace can rely on
SP of the web refers to the capability of a website to convey a multiple sources to infer the presence of other buyers, social
sense of human warmth and sociability (Gefen & Straub, 2004; presence of others should be measured as the composite latent
Hassanein et al., 2009). It might be the most adopted perspec- construct that is jointly influenced by the measures (MacKenzie,
tive in prior e-commerce research, reflecting the inherent “sub- Podsakoff, & Jarvis, 2005).
jective quality” of website. Most websites do not facilitate direct The third dimension is SP of interaction with sellers (Caspi &
interaction with another human, but this does not mean that a Blau, 2008; Qiu & Benbasat, 2005). In traditional e-commerce,
website cannot convey social presence. A website, as the container sellers rarely engage direct interactions with buyers. But online
of multimedia contents and socially rich text, can convey a sense chat tools make these interactions possible. They can be used as an
of personal, sociable and sensitive human contact. Other IT arti- effective marketing channel for sales, communication, and
facts embedded into a website, e.g. physically embodied agents customer services. While prior studies indicate that SP is more
(Lee, Jung, Kim, & Kim, 2006), 3D avatar or videos, and Text-To- often conveyed through the “imaginary interactions” with the web
Speech voice (Qiu & Benbasat, 2005), also help to enhance the interface (Hassanein & Head, 2007; Hess et al., 2009), the
perceived SP. The provision of recommendations and consumer computer-mediated communication (CMC) tools such as customer
reviews in an e-commerce site also increases the SP of the website support chat (Qiu & Benbasat, 2005) and message boards (Cyr et al.,
(Kumar & Benbasat, 2006). Table 1 indicates the social design 2007) can also convey social presence. This perspective of SP as
feature in SC that build up the perceived SP of a websiteGefe, such direct interactions with other users have been suggested in online
as personal profile, context profile, social content, and informa- community research. For instance, Caspi and Blau (2008) pointed
tion sharing. out that “medium as interaction enabling” is one factor of SP. Tu
The second dimension is perception of others (Caspi & Blau, (2002) also considered interactivity as one dimension of SP. In SC,
2008), also named awareness. Perception of others refers to the CMC tools have been used as one effective way to communicate
extent to which other social actors appear to exist and react to the with buyers. For instance, Aliwangwang, an instant message tool
users in online communities (Shen & Khalifa, 2009). Awareness in developed by Alilibaba for its commercial interactions, has owned
an online community is achieved through status updating, self- more than 100 million active users. While for JD.com, another
228 B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237

leading online marketplace in China, QQ e a third party developed marketplace is taken as control variable.
instant message tool e is used by its members for the daily trans-
actions. Considering the extensive usage of CMC tools in practice, 3. Research model and hypothesis development
we argue that interaction with sellers is one important dimension
of SP. The proposed research model is depicted in Fig. 1. In a SC
marketplace, online sellers can overcome the more impersonal,
anonymous and automated stigma of online shopping by making
2.4. Trust in social commerce marketplace
their virtual storefront socially rich (Kumar & Benbasat, 2002).
Perceived social presences should help buyer shape their trusting
Trust is a central aspect in many economic transactions
beliefs towards sellers. The model presents that each dimension of
(Fukuyama, 1995; Mayer, Davis, & Schoorman, 1995). When a
social presence has a positive influence on trust in the sellers,
social environment cannot be regulated through rules and cus-
which in turn, will shape online purchasing behaviors. The hy-
toms, people tend to adopt trust as a reducer of social complexity
potheses are explained in detail as below.
(Luhmann, 1979). This is especially true for online transactions
due to the absence of effective regulation over the opportunistic
behaviors of e-vendors. Thus, trust is often considered the 3.1. Social presence of web and trust
foundation of e-commerce (Keen, Ballance, Chan, & Schrump,
1999) and the most crucial factor for the success of e-com- E-commerce is, in essence, a type of information system. Buyers
merce (Wang & Emurian, 2005). Prior e-commerce research has conduct online transactions mainly through interacting with the
focused on finding key antecedents of trust or disclosing the website. These buyer-web interactions could be viewed similar to
trust building mechanism (e.g., Lu, Hirschheim, & Schwarz, 2015; interpersonal interactions (Pavlou et al., 2007) if the website were
Ou & Sia, 2009). These studies focused more on the impacts of treated a social actor (Kumar & Benbasat, 2002). Since human
functionality (e.g. usability, ease of use and usefulness) and interaction is viewed as a precondition of trust (Blau, 1964) the
institutional structures (e.g. structural assurance, situational buyer-web interactions should also contribute to the building of
normality and feedback mechanisms), paying very little atten- trust online. A high SP website conveys more information and social
tion to social factors (Kim & Park, 2013) except social presence of cues, and thus, is perceived to be more transparent; whereas in a
web interface (e.g., Gefen & Straub, 2004; Hassanein & Head, more transparent environment the untrustworthy behaviors will
2007). Trust, indeed, is built through social interactions with be inhibited. The SP of a website will also shorten the perceived
other people and the surrounding environment. Thus, social social distance between buyers and sellers (Pavlou et al., 2007). And
context should be an important but neglected characteristic of it is easier to form a trustworthy relationship when the perceived
trust in prior literature. social distance is short. Therefore, the SP of a web should enhance
Trust is a complex and multifaceted construct (Gefen, buyers' trust towards online sellers. Prior studies have also sug-
Karahanna, & Straub, 2003). It has been conceptualized in a vari- gested a positive impact of the SP of a website on trust (Hassanein
ety of ways. McKnight, Choudhury, and Kacmar (2002) tried to et al., 2009). Thus, in a SC marketplace, the SP of a web created by an
remove some of the conceptual confusion on trust by separating online seller will make him/her more trustworthy. Hence, we hy-
beliefs from intended behavior based on the theory of reasoned pothesize that:
action (Fishbein & Ajzen, 1975). They put trust into two broad H1. The SP of web of will have a positive impact on trust in online
categories: trusting beliefs and trusting intentions and conceptu- sellers.
alized trust as a set of specific beliefs including integrity, benevo-
lence and ability. This conceptualization of trust is akin to that of
other studies adopting SPT (e.g., Hess et al., 2009). Then trusting 3.2. Perception of others and trust
beliefs is conceptualized as a second-order construct in this study.
Two types of trustees exist for a SC marketplace from a buyer Shopping has always been social activities. Social psychology
perspective (Lu et al., 2015): marketplace (e.g., Amazon and eBay) research indicates that human can learn from and be affected by
and sellers resided in the marketplace. Trust in online sellers is the knowledge and experiences of others who they know or trust
considered as the major construct in this study, while trust in (Mardsen, 2010). Persuasion can be extremely effective when it

Integrity Benevolent Competence


Social Presence of
Web
H1

Perception of H4 Purchase
Others H2 Trust In Sellers Intention

H3
Social Presence of
Interaction with
Sellers
Trust In Perceived Price
Comment Trust Disposition
Marketplace Fairness

Fig. 1. Research model.


B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237 229

comes from similar others (Cialdini, 2001), even if they are Taking part in online transactions requires buyers to deal with
random strangers. Marketing literature also suggests that con- the social complexity associated with the opportunistic behaviors
sumers' beliefs, attitudes and behaviors tend to be influenced by of sellers. Trust can be viewed as a significant antecedent belief that
their social interactions with others when they make purchase creates a positive attitude toward the transaction behavior
decisions (Godes et al., 2005). When shopping online, buyers are (Jarcenpaa, Tractinsky, & Vitale, 2000), which in turn leads to
hard to validate the information offered by the sellers. However, transaction intentions. Trust helps reduce the social complexity and
they can rely on their peers who have visited the same storefront vulnerability that a buyer feels in e-commerce by allowing the
for indirect cues (Cialdini, 2001). Buyers not only can interact buyer to subjectively rule out undesirable yet possible behaviors of
with the e-commerce system, but also are able to make sense of the e-vendor. As such, trust can help buyers reduce their risk per-
the existence of other buyers based on various cues resided in ceptions when dealing with online vendors, thereby encouraging
social applications such as customers' reviews (WOM), pick lists, them to engage in the “trust-related behaviors” with e-vendors,
popularity lists and transactional history. If social cues send such as sharing information or making purchases (McKnight et al.,
positive signals (e.g. positive WOM valence, most of visitors wish 2002). Prior studies have shown that trusting beliefs in specific
to get this product, most of visitors have purchased this product online vendors are correlated with transaction intentions with
…), a buyer will feel more confident in the seller's ability, those same vendors (McKnight & Chervany, 2002; Pavlou, 2003).
benevolence and integrity in providing good services. Marketing We hypothesize that the same logic can be extended to online
literature also indicates that when people observe the purchase sellers in a SC marketplace. Accordingly, we have:
actions of all previous individuals, this publicly observed infor-
H4. Trust in online sellers (trusting beliefs) will increase purchase
mation outweighs their own private information in shaping their
intention.
beliefs and behaviors (Chen et al., 2011). As a result, people tend
to follow the lead of their online predecessors and become
engaged in a type of “herd behavior” (Chen et al., 2011). 3.5. Control variables
Accordingly, we have:
The model incorporates additional control variables known to
H2. Perception of others will have a positive impact on trust in online
affect trust and online behavior that are described below.
sellers.
Online comment and rating systems provide fine-grained in-
formation about a seller's reputation that is likely to engender a
buyer's trust in a seller (Pavlou & Dimoka, 2006). Positive com-
3.3. Social presence of interaction and trust
ments and ratings help buyer to form positive beliefs in sellers.
Thus, its effect on trust in seller is controlled.
Online chat tools such as QQ, MSN or chat plug-ins embedded in
Trusting disposition is the degree that people in general can be
the website have been used for sellerebuyer interactions, through
trusted. Since trusting disposition has shown to increase trust, we
which more social information will be revealed to buyers to form
control for its effect on trust in seller.
their trusting beliefs. In order to sustain a good customer rela-
Trust transference logic (Stewart, 2003) indicates that trust may
tionship, several methods are often employed, such as, choosing
be transferred from a place, an industry association, or an entity to
special words and sending the emotional icons like smile. For
another individual. In online context, trust of a marketplace can
instance, a special language style, termed “Taobao Style”, is popular
transfer to the sellers associated with that marketplace. Prior
in Taobao communities. Buyers are greeted with the word of “Qin”
research also indicates that trust in marketplace increases buyer
(means “my dear” and rarely used in daily communication in Chi-
intention to engage in online transactions (Lu et al., 2015). Thus, its
nese culture but extensively used in online context). The traded
effects on both trust in seller and purchase intention need to be
goods are called “Baobei” (means “treasured objects”). “Taobao
controlled.
Style”, in together with other communication methods, make
Consumers' perception of price fairness has been known to
sellers feel friendlier and warmer, and thereby, will help to shorten
significantly affect their reactions toward sellers. Previous studies
the perceived distance between them. Thus, the CMC chat tools are
have found that perceived price fairness directly affects consumers'
also able to convey a sense of social presence. Buyers are also able to
purchase intention (e.g., Kahneman, Knetsch, & Thaler, 1986).
make sense of the attitudes, benevolence, and integrity of sellers
Therefore, its effect on purchase intention is also controlled.
via these compute mediated interactions, thereby forming beliefs
on sellers. The computer mediated interactions, such as, email and
4. Research methodology
teleconference, have been argued to be able to convey SP and in
turn to shape user beliefs (Qiu & Benbasat, 2005; Zack, 1993). In
Following Gefen and Straub (2004), the free simulation experi-
online learning communities, the text-based online discussion
ment methodology is used in this study. In a free simulation
(Medium as interaction enabling) is found to be positively corre-
experiment, subjects are exposed to the research setting that
lated with the cognitive aspects of learning (Caspi & Blau, 2008).
simulates or duplicates the real-world situation and respond
Hence, we have:
naturally to tasks before answering questions about beliefs, atti-
H3. SP of interaction will have a positive impact on trust in online tudes, and observation (Fromkin & Streufert, 1976). Since no vari-
sellers. ables are specifically manipulated, the technique is known as a
“free” simulation experiment. The strength of this technique is that
it allows the researcher to observe and measure the subjects
3.4. Trust and purchase intention engaged in real world task.
In selecting the sites to be included in this study, we deliber-
Purchase intention is defined in this study as a buyer's intention ately chose online marketplaces that are well known and widely
to purchase from a seller resided in a SC marketplace. According to used. Eventually, Taobao is selected as the real-world setting
the Theory of Planned Behavior (Ajzen, 1991), behavioral intention where subjects are required to complete tasks. Taobao is the
is the most influential predictor of behavior. Thus, in this study we largest online marketplace in China. By 2010 it owned over 370
use purchase intention to represent purchase behaviors. million members. Transactions on Taobao totaled over 1 trillion
230 B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237

RMB in 2012 and reached 35 billion RMB on the single day of removing invalid responses including those containing more than
November 11 (double 11) of 2013. More recently Taobao has five missing values and those with the same answer to all ques-
evolved into a SC marketplace as indicated in Table 1. Hence, tions, resulting in a valid rate of 85.3%.
Taobao represents a typical SC marketplace and is qualified as the
free simulation experiment site. 4.3. Sample statistics

4.1. Instrument development Table 2 summarizes the descriptive information of the dataset.
About 53.1% of the respondents were male, and 46.9% were female.
Wherever possible, the measurement items were adapted from A majority of respondents had online purchasing experiences
previous research. All constructs were measured by reflective in- (96.2%) and were regular Internet consumers (90% of subjects
dicators except for the construct of “social presence of others”, purchase online at least once a month). As the free simulation
which was measured with formative items. Information regarding experiment was conducted in universities, a majority (77.3%) of the
on others buyers revealed by social applications can be summarized respondents were students aged between 18 and 30. Even though
into three types, including others who might feel interest with the the subjects are mainly MBA and undergraduate students, they
product (e.g., the wish list and the share button), others who have without a doubt are the main Internet consumers in China. About
actually bought the product (e.g., sales record), and others who 60% of Internet consumers in China are aged between 18 and 30
have provided positive information about the product (e.g., WOM). years old (iClick, 2014), and more than 60% of Taobao buyers have
Therefore, social presence of others can be measured by these three undergraduate education or above (Lu, Zhao, & Wang, 2010). The
formative indicators. use of students sample for e-commerce research was also advo-
As the original reflective items were in English, we used the cated in previous studies (Walczuch & Lundgren, 2004). Thus, we
following procedures to ensure the translation validity. First, a believe that our sample represents the major segment of Internet
researcher whose native language is Chinese forward translated the consumers in China and should be appropriate for this study.
items into Chinese. Next, another researcher independently back- Following Armstrong and Overton (1977), nonresponse bias was
ward translated the items into English. Subsequently, the two re- assessed by verifying that respondent demographics (age, gender
searchers compared and discussed the two English versions to and education) were not significantly distinct from current Chinese
develop the first Chinese version of the items. The preliminary in- Internet consumers (iClick, 2014; iResearch, 2013).
strument was pilot tested and reviewed by two faculty and three
doctoral students in IS field for clarity and face validity. Minor re- 5. Data analysis and result
visions were made based on their feedbacks. Finally, the two initial
translators checked this version together and finalized the Chinese The partial least square (PLS) approach was used for the data
instrument. analysis considering its ability to deal with the formative constructs
We measured all items using seven-point Likert scales ranging (Gefen, Straub, & Boudreau, 2000; Goo, Kishore, & Rao, 2009). PLS
from strongly disagree (1) to strongly agree (7). A further pretest of is a “second-generation” technique that has gained increasing
the survey instrument was conducted with 105 subjects, using the popularity in the field of marketing or information systems in
same data collection method that would be applied in the actual recent years (Becker 1991; Hair, Sarstedt, Ringle, & Mena, 2012). For
data collection. The items were modified following the procedures accurate estimation and enough statistical power, minimum sam-
recommended by Churchill (1979). Please see the Appendix A for ple size check is performed by following Chin (1998). A strong rule
the scales. of thumb suggests that the sample size should be at least equal to
the larger of the following: (1) ten times the scale with the largest
4.2. Experimental procedure number of formative indicators, or (2) ten times the largest number
of structural paths directed at a particular construct in the struc-
The MBA and senior undergraduate students in business schools tural model (Chin, 1998). The sample size for current study is 552,
from two universities of China took part in the experiment. The exceeding the minimum demand of sample size (10*7 ¼ 130) ac-
classes in which the experiments were performed were randomly cording to the rule of thumb. Therefore, our sample size is
chosen with permission from the instructors. The subjects were adequate. Next we will discuss the results of measurement and
assured that the results would only be reported in aggregate to structural model with the use of PLS.
guarantee their anonymity and confidentiality. The activity was
performed during class hours in two similar computer labs. In this 5.1. Measurement model assessment
way, exogenous variance relating to hardware issues, network
response time, browser, purchase activity, and so on, was We first assessed the second-order construct of trusting beliefs
controlled. Subjects were first given a brief introduction of the by comparing two separate models by using LISREL (Goo et al.,
study. After that, they were required to go through the process of 2009). Model 1 hypothesizes that a unidimensional first-order
buying from Taobao without actually completing the transaction by factor accounts for the variance among all measurement items of
following guidance. To simulate the real world situation as closely the second-order construct (trust in seller) in this study. Model 2
as possible, subjects were allowed to freely select the products hypothesizes a second-order factor that accounts for the patterns of
based on their real needs. Immediately after completing the task, covariance among the first-order factors as conceptualized in this
subjects filled out a web-based instrument. The purpose to do this study. Comparison of Model 1 (c2 ¼ 381.4, d.f. ¼ 35, RMR ¼ 0.061)
is to refresh, in the mind of the buyers, the nature of the interaction and Model 2 (c2 ¼ 109.6, d.f. ¼ 32, RMR ¼ 0.035), indicates that
with the seller, thereby increasing the content validity by collecting Model 2 is a better-fitting model with significant changes in chi-
responses based on a recent activity. Finally, out of the 640 ques- square (Dc2 ¼ 271.8, Dd.f. ¼ 3; p < 0.0001). Items loaded signifi-
tionnaires distributed, 546 valid responses were received after cantly on their assigned first-order factors, which in turn highly
B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237 231

Table 2
Sample statistics (n ¼ 546).

Measure Items Frequency Percentage

Gender Male 290 53.1%


Female 256 46.9%
Age 24 or below 246 45.1%
>24 and 30 176 32.2%
>30 and 35 81 14.8%
>35 and 40 39 7.1%
41 or above 4 0.7%
Have purchased online Yes 525 96.2%
No 21 3.8%
Frequency of purchase online Several times a week 37 6.8%
Several times a month 190 34.8%
Once a month 267 48.9%
Less than once a month 32 5.9%
Never 20 3.7%
Types of product purchased online Clothing and footwear 236 43.2%
Localized service 73 13.4%
Computers and accessories 67 12.3%
Food and health products 35 6.4%
Books 39 7.1%
Skin care & cosmetics 21 3.8%
Sporting gear 19 3.5%
Others 56 10.3%

Table 3
The assessment of measurement model for constructs.

Constructs # of items Composite reliability Cronbach's alpha AVE Std loadings

Integrity 4 .92 .89 .75 IN1 (0.85) IN2 (0.86) IN3 (0.89) IN4 (0.86)
Benevolence 4 .90 .85 .69 BEN1 (0.81) BEN2 (0.84) BEN3 (0.86) BEN4 (0.82)
Competence 4 .88 .83 .67 COM1 (0.81) COM2 (0.85) COM3 (0.79) COM4 (0.82)
Trust in seller 3 .91 .92 .77 IN (0.90) BEN (0.87) COM (0.87)
Purchase intention 3 .93 .88 .81 PI1 (0.89) PI2 (0.91) PI3 (0.90)
Trust in marketplaces 4 .93 .89 .76 TIM1 (0.88) TIM2 (0.88) TIM3 (0.86) TIM4 (0.86)
Social presence of web 4 .93 .90 .77 SPW1 (0.87) SPW2 (0.88) SPW3 (0.90) SPW5 (0.87)
Social presence of others 3 e e e SPO1 (0.18) SPO2 (0.64) SPO3 (0.39)
Social presence of interaction 4 .89 .84 .68 SPI1 (0.81) SPI2 (0.77) SPI3 (0.87) SPI4 (0.85)
Comment 4 .94 .92 .81 C1 (0.85) C2 (0.92) C3 (0.92) C4 (0.90)
Trust disposition 5 .92 .89 .70 TD1 (0.72) TD3 (0.87) TD4 (0.87) TD5 (0.87) TD6 (0.85)
Perceived price fairness 4 .94 .92 .80 PPF1 (0.85) PPF2 (0.80) PPF3 (0.89) PPF4 (0.86)

Note: All item loadings are significant at 0.01; the composite reliability score is calculated with the formula prescribed by Fornell and Larcker (1981).

loaded on the second-order construct. The LISREL statistics loadings (>0.70) for each construct, adequate internal reliabilities
confirmed our hypothesis of trusting in sellers as a second-order (>0.70), and high AVE (average variance extracted) scores (>0.50).
construct. Evidence from Table 3 shows that all these criteria have been
A measurement model analysis for the reflective constructs was satisfied for each construct, indicating convergent validity was
conducted via the component part of PLS. We first refined the established. As shown in Table 4, the square root of the AVE for each
measurement model by deleting the items with low loadings and construct (diagonal term) exceeds the correlations between the
cross loadings. The retained items are shown in Table 4. Internal construct and other constructs (off-diagonal terms), providing
reliability was verified with all composite reliability scores and strong evidence of discriminant validity. A low to moderate corre-
Cronbach's Alpha of the latent variables exceeding the 0.70 lation coefficient (<0.60) (in Table 4) is also often considered evi-
threshold, as shown in Table 3. Convergent validity is often dence of discriminant validity.
demonstrated by meeting the following criteria: significant item The formative items might suffer from multicollinearity

Table 4
Correlations of latent variables and evidence of discriminant validity.

1 2 3 4 5 6 7 8

Trust in seller 1 .88


Purchase intention 2 .59 .90
Trust in marketplaces 3 .46 .46 .87
Social presence of web 4 .57 .40 .32 .88
Social presence of interaction 5 .64 .47 .42 .65 .83
Comment 6 .50 .50 .45 .30 .41 .90
Trust disposition 7 .52 .42 .42 .43 .49 .37 .84
Perceived price fairness 8 .44 .53 .35 .35 .42 .30 .28 .89

Note: (1) Bolded diagonal elements are the square root of average variance extracted (AVE).These values should exceed inter-construct correlations (off-diagonal elements) for
adequate discriminant validity; (2) Social Presence of Others is excluded since it is measured by formative indicators.
232 B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237

(Diamantopoulos, 2011). The degree of multicollinearity for the percent of the variance explained in Purchase Intention. As ex-
formative items is measured by the variance inflation factor (VIF), pected, all the controlled variables, except Trust in Platform
which was calculated via SPSS. All the VIFs (1.99, 1.31, 1.83, (b ¼ 0.10, P < 0.10), have significant impacts on their assigned
respectively) are below the rule of thumb of 10 (or even the more dependent variables. The results show that even when even
conservative value of 5) (Hair, Black, Babin, Anderson, & Tatham, allowing for the effects of the control variables, social presence
2006), indicating that multicollinearity is not a serious concern constructs still significantly contribute to buyer trusting beliefs
for the study. towards online sellers and Trust in Seller is still a strong predicator
The extent of common method bias was assessed with three for buyer purchase intention.
tests. First, Harman's one-factor test (Podsakoff, MacKenzie, Lee,
& Podsakoff, 2003) was performed by including all reflective 6. Discussion
items with both principal axis factoring and principal component
factoring. In both cases more than one factor emerged. The 6.1. Key findings and contributions
variance explained by the largest factor was 36.2% for principal
axis factoring, and 37% for principal component factoring. Both This study has several key findings. First, the results confirm
results are below the critical value of 50%. Second, the marker the significant positive impact of trusting beliefs on purchase
variable approach was performed by first identifying one maker intention in the context of online SC marketplace even allowing
items that are not included in the research model and do not the effects of controlling variables. A substantial degree of trusting
have an explicit theoretical influence on the construct in the beliefs in sellers' traits of integrity, benevolence and competence
research model. The correlations between the marker item and is needed by online buyers before making purchase decisions.
the items of interest have to be caused by the method (Ro € nkko
€& Thus, this study upholds the claim that trust is important in e-
Ylitalo, 2011). The mean correlation coefficients values for the commerce (Fang et al., 2014; McKnight et al., 2002; Pavlou &
marker item is 0.035, indicating insignificant influence of the Gefen, 2004) and extends it to the context of social commerce.
CMV. Results of the marker variable analysis are omitted for Second, the results support our hypothesis of trusting beliefs as a
simplicity. Third, the correlation matrix (Table 4) does not indi- second-order construct composing of integrity, benevolence and
cate any highly correlated factors (highest correlation is r ¼ 0.65), competence, providing a more parsimonious conceptualization of
whereas evidence of common method bias should have resulted trusting beliefs in the context of both e-commerce and social
in extremely high correlations (r > 0.90) (Pavlou et al., 2007). commerce. Although trusting belies has been suggested a multi-
These results indicate that the CMV is unlikely to distort the dimensional construct (McKnight et al., 2002), it was often
results of this study. treated as a set of separate variables, increasing model complexity
or making results suffer from high multicollinearity because of
5.2. Structural model and hypothesis testing high correlations among the dimensions of trust. Third, drawing
upon the perspective of social presence theory, this study sheds
The results of testing the structural model are shown in Fig. 2. light on the nature of social atmosphere of the social commerce
The t-values for the path coefficients were estimated via the marketplace by proposing and testing a set of three antecedents of
bootstrapping procedure (Chin, 1998). The R2 numbers represent trusting beliefs: SP of web, perception of others, and SP of inter-
the percentage of variance explained for the dependent variables. action with sellers. All the three proposed social presence con-
All three dimensions of the social presences in online marketplace structs are found to be strong predicators of trust in seller, jointly
are found to contribute positively and significantly to Trust in accounting for a substantial degree of the variance in trust in
Sellers, and respectively they are: Social Presence of Web (b ¼ 0.21, seller. The results, thereby, suggest the vital role of social atmo-
P < 0.01); Social Presence of Interaction (b ¼ 0.27, P < 0.01) and sphere in building buyer trusting beliefs in sellers in an online SC
Social Presence of Others (b ¼ 0.09, P < 0.01). Hence, hypotheses marketplaces. Finally, the entire structural model with the
H1e3 are supported. Collectively, these three social presence con- controlled variables helps delineate the full picture in which both
structs account for almost 48 percent of the variance explained in social and structural factors shape buyer beliefs and purchase
Trust in Sellers. As hypothesized, Purchase Intention is found to be behaviors in a SC marketplace.
significantly influenced by Trust in Sellers (b ¼ 0.38, P < 0.01), The primary contribution of this study is to introduce a new
supporting H4. Trust in Sellers by itself can account for about 35 set of social antecedent factors of trusting beliefs into a model

Integrity Benevolence Competence ** Significant level .01


R2 = .81 R2 = .75 R2 = .75
* Significant level .05
Web .90 .87 .87 Variance explained in bold
.21**

Trust In Sellers Purchase Intention


R2 = .55 .38**
.09** R2 = .47

.27** .19
** ** .10 .18
** **
.16 .30

Trust In Perceived Price


Comment Trust Disposition
Marketplace Fairness

Fig. 2. PLS results of structural model.


B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237 233

that explains the buyer purchase behavior in the online SC (Gefen & Straub, 2004), and website design features (Kim, Jin, &
marketplaces. By identifying the underlying social sources of e- Swinney, 2009; Ou & Sia, 2009). There have been very few
trust in addition to the institutional and individual sources in studies (e.g., Liang & Turban, 2011) that tried to identify ante-
literature (Gefen & Pavlou, 2012; McKnight et al., 2002), this cedents of trust from the social perspective. However, the fast
study provide a more full understanding on online purchase development of social commerce reintroduces the social aspect of
behaviors in SC marketplaces. Prior research concentrates more shopping to e-commerce, making it possible for online buyers to
on the impacts of institutional context and technological factors rely on social cues in assisting their purchase decisions. This study
for trust building in e-commerce (e.g., Fang et al., 2014), confirms the positive impacts of social factors on trust (beliefs) by
neglecting the influences of the social context. However, social theorizing the nature of social aspect in online marketplaces
context is an important source of trust (Luhmann, 1979). Thus, based on the SPT perspective. In doing so, this study not only
this study extends current trust research by introducing a new suggests that SPT is a relevant theoretical perspective, but also
set of social factors relying social presence theory. Second, indicates that the social aspect of e-commerce deserve further
drawing upon the social presence theory, this study theorizes the exploration with a variety of theoretical lenses such as social
nature of social aspect of shopping by surfacing three SPT-based capital theory.
constructs: SP of web, perception of others and SP of interaction To overcome the limitations of viewing as a one-dimensional
with online sellers. While social presence was often treated as construct (Shen & Khalifa, 2009) and to better conceptualize the
one-dimensional construct that represents the static character- nature of social aspect of e-commerce, this study proposes and
istic of web interface (Shen & Khalifa, 2009); this study has validates social presence as a multi-dimensional construct
proposed and validated it as a multi-dimensional concept in the composing a set of three variables. Jointly they account for a sub-
SC context. Third, via the social presence constructs, we disclose stantial degree of variance explained in trusting beliefs. A multi-
how the use of social applications and functions in e-commerce dimensional conceptualization of social presence offers at least
websites helps build the trustworthy online environment and two strengths. First, it can show which dimensions of SP have
shape buyer perceptions and behaviors. Fourth, this study con- significant influences on online behaviors, providing a deep un-
tributes to trust literature by separating the individual-level trust derstanding on how the social factors impact user perceptions,
(trust in seller) with the institution-based trust (e.g., trust in beliefs and behaviors. Second, it helps us uncover antecedent fac-
marketplace, structural assurance). It reflects the nature of re- tors for each dimension of SP. In online context, perceptions of SP
lationships in online marketplace (Lu et al., 2015): buyers need to are grounded in the use of social artifacts. A multi-dimensional
trust both the marketplace and sellers before making purchase conceptualization of SP can disclose how various social artifacts
decision. Thus, two types of relationship exist in an online affect different SP dimensions (Shen & Khalifa, 2009). Online buyer
marketplace: the dyadic buy-seller relationship reflected by the communities have been found to increase engagement in e-com-
construct of trust in seller and the buyer-institution relationship merce adoption (Liang & Turban, 2011; Lu et al., 2010). Therefore,
reflected by construct of trust in marketplace. Finally, by looking we contribute a set of three SPT-based variables as social ante-
into buyer behaviors in online SC marketplaces, we introduce a cedent factors of trust that can be explored in future e-commerce
new phenomenon e social commerce e that deserves more and online community research.
attention in future study. Social influences in e-commerce have As for the formative SP construct e social presence of others,
been overlooked or simplified in prior literature, however, the the indicator of SPO1, reflecting the information about other
mushrooming of SC call more attention to the social perspective buyers who might feel interest with the product, seems a weak
of online shopping. item (b ¼ 0.18, P > 0.10). This suggests that in comparison with the
information about who might want to buy, the social cues
6.2. Implications for research regarding to others who have actually bought and provided
comments are more persuasive for an online buyer to trust a
Online trust is viewed as a central concept of e-commerce in specific seller. Thus, the findings of this study is consistent with
literature (Keen et al., 1999) because of its substantial roles in the study of Chen et al. (2011), in which the positive observational
mitigating negative perceptions (uncertainty and risks) and in learning information was found to have a significant impact on
enabling online transactions. Most e-commerce studies focused on buyers' purchase actions. Since this is the first endeavor to
a single website and viewed trust as a dyadic (one-to-one) rela- conceptualize social presence of others in terms of social com-
tionship between a buyer and a specific vendor. Since the domi- merce context, our specification of this construct might be not
nance of online marketplace, this study examines trust in online comprehensive (Diamantopoulos, 2011), we encourage future
marketplace and extends it to the SC context. From a relationship studies to continue to explore this construct.
perspective, two types of relationships exist in online market- It should be noticed that the above findings are based on the
places: the online buyereseller relationship (trust in seller) and the data collected from China, which is significant different from
buyer-marketplace relationship (trust in marketplace). Though Western culture. Although previous research revealed that there
trust in marketplace is controlled for this study, the results support were no significant differences for the effects of social presence on
its significant positive effects on purchase intention. Thus, the trust between Chinese and Western culture (Hassanein et al.,
buyer-marketplace relationship also helps encourage online 2009), further examination of our model in the context of West-
transactions (Lu et al., 2015). This study contributes to e-commerce ern culture might been necessary before the generalization the
literature in delineating the relationships in online marketplaces. It research results.
also suggests that both types of relationships deserve special Finally, from a descriptive perspective, this study describes the
attention in future studies. process by which a set of social factors facilitate online exchange
Since trust (as a set of beliefs) is a key mediating variable in relationships through the key mediating role of trusting beliefs
online relationship models (Morgan & Hunt, 1994), a lot effort has after controlling the effects of a few key variables. This study
been put into finding the underlying sources of online trust in e- suggests that in the context of social commerce buyer trusting
commerce literature. Trust are found to root in institutional beliefs depend on both structural sources and social sources.
mechanisms (McKnight et al., 2002; Pavlou & Gefen, 2004), in- Research models that examine online buyer behaviors in social
dividual characteristics such as trust disposition and familiarity commerce without considering either one of their effects may
234 B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237

result in problems of “errors of exclusion” (Benbasat & Zmud, cannot address all these possible antecedents of trust, such as,
2003). reputation, branding, and previous purchase experiences. Addi-
tional research is also needed to sort out the effects of these
6.3. Implications for practice variables.
In addition to the aforementioned future research suggestions,
Our research also has several practical implications. First, this paper suggests several more research directions as follows.
although embedding social technologies into e-commerce sites has First, we have proposed and tested social presence as a multi-
been widely adopted by practitioners, its effectiveness is rarely dimensional construct in this study. Future research can further
examined and confirmed in literature. This study shows that the examine our conceptualization in different cultural context or by
perceived social presences conveyed by the use of social technol- proposing new dimensions of social presence. Second, social
ogies can increase buyer trusting beliefs towards sellers, which is a presences are conveyed by the use of social applications and
necessary precursor of online purchase. Thus, to some extent, the technologies. Then future research can study how various social
combination of social technologies with e-commerce applications artifacts influence different types of social presence. Third, online
is effective, though the effectiveness of some social applications buyer community has been found to positively affect e-commerce
need to be further examined. This encourages the practitioners to adoption (Lu et al., 2010). Social presence theory is also a suitable
continue to include social applications into their site but with a perspective for online community research (Shen & Khalifa,
more careful examination on their effectiveness. 2009). Thus, future research can explore the user behaviors in
Second, our results indicate that the social presence conveyed online buyer communities by using the SPT perspective. Fourth,
by the web content (text, pictures, videos, etc.) and the social the focus of this study is to examine the effects of different types
presence conveyed by interaction with sellers can significantly of social presence on trusting beliefs. We use trust in marketplace
increase buyer trusting beliefs. The results of this study, combined (intentions) as the surrogate for institutional mechanism and
with previous research (Hassanein et al., 2009), suggest that on- other factors associated with marketplace. A more complete
line sellers might wish to invest in creating and maintaining these model that includes both social factors and structural factors will
two effective social presence channels with potential buyers. be more interesting for future research. Finally, we have shown
Furthermore, this study indicates that perception of other buyers that the use of social technologies is effective for online trusting
also has a positive impact on buyers' trusting beliefs towards a building via a set of variables based on SPT. Future research can
specific online seller. But not all information revealed about other theorize the nature of social aspect by employing social theoret-
buyers contribute significantly. Only information regarding with ical perspectives.
others who have actually bought and who have provided posi-
tively information is useful in shaping online buyers' trusting
beliefs. This indicates that online platform managers should 7. Conclusion
closely monitor the effects of the information revealed about
other online buyers. Drawing upon the social presence theory, this paper looks into
Finally, our results uphold the claims that trust is critical for the the nature of social aspect in online social commerce marketplaces
success of electronic commerce in literature (Lu et al., 2010) and by proposing a set of three social presence variables, SP of the web,
extends it to the SC context. Our findings suggest that both social perception of others and SP of interaction, respectively. A research
factors and structural factors are necessary for trust building in model that describes buyer purchase behaviors in online social
online SC marketplaces. This implies that building social environ- marketplaces is proposed by including the three social presence
ment based on social technologies is as important as building variables as social antecedents of trusting beliefs. In sum, this study
institutional environment with the IT-enabled mechanisms for sheds new light on both social commerce research and social
online marketplace providers. Since most e-commerce websites presence theory as follows. First, it re-conceptualizes and validates
have completed the building of reliable institutional environment, the concept of social presence as a multi-dimensional construct in
it is more urgent and important for e-commerce companies and social commerce, overcoming the limitations of one-dimensional
marketplaces providers to establish a more social environment for conceptualization in previous e-commerce research. Next, it con-
the next step. tributes a new set of social presence variables that can be explored
in future research. Then this paper discloses the positive effects of
6.4. Limitations and suggestions for future research social presence variables on trusting beliefs, suggesting an effective
way for trust building in online social commerce marketplaces, that
This paper has a number of limitations. First, MBA and under- is, the combination of IT-enabled structural factors and the social
graduate students sample was used in this study. Although factors based on the use of social technologies. Finally, we introduce
nonresponse sample bias was assessed and verified, the sample a new perspective of e-commerce that needs special attention for
may not represent actual online buyers of online marketplace. future investigations, that is, a new phenomenon of social
Second, a single website (Taobao) data was used for this study. In commerce.
spite of that Taobao is the largest SC marketplace in China,
including more sites for data collection will increase the external
validity of the results. Additional research can examine the model Fund sources
by using actual online buyer data with the inclusion of more sites.
Third, the model was tested only with the data collected from This work is supported by National Key Technology R&D Pro-
Chinese culture. The results might not be generalized to other gram of the Ministry of Science and Technology (Grant No.
cultural context. Future study is also needed for testing the model 2013BAH54F03), the Ministry of education of Humanities and So-
in different cultures. Fourth, the common method bias was cial Science project (Grant No. 13YJC630105), the Doctoral Fund of
assessed and the results showed that common method variance Ministry of Education of China (Grant No. 20120133120005), the
was not a major concern statistically, however, common method Soft Science Fund of Shandong (Grant No. 2014RKE28002) and
bias cannot be absolutely ruled out. Finally, we have controlled the Fundamental Research Funds for the Central Universities
effects of some important variables on trust; however, this paper (13CX04039B).
B. Lu et al. / Computers in Human Behavior 56 (2016) 225e237 235

Appendix A. Instrument and measurement properties

Mean Std dev Loading

Principle variables
Social presence of web (Gefen & Straub, 2004)
SPW1 There is a sense of human contact in the web of the seller. 4.38 1.13 0.87
SPW2 There is a sense of personalness in the web of the seller. 4.25 1.12 0.8
SPW3 There is a sense of sociability in the web of the seller. 4.42 4.12 0.90
*
SPW4 There is a sense of human warmth in the web of the seller.
SPW5 There is a sense of human sensitivity in the web of the seller. 4.14 1.17 0.87
Social presence of others (composite latent construct)
SPO1 There are many others buyers feel interested with the product. 4.87 1.24 0.18
SPO2 There are many others buyers sharing information regarding with the product 4.59 1.12 0.64
SPO3 There are many others who have bought the product. 5.14 1.24 0.39
Social presence of interaction (Caspi & Blau 2008; Hess et al., 2009)
SPI1 I can make sense of the attitude of sellers by interacting with them via Aliwangwang. 4.71 1.10 0.81
SPI2 I can imagine how they may look like by interacting with them via Aliwangwang. 5.02 1.10 0.77
SPI3 There is a sense of human touch to communicate with sellers via Aliwangwang. 4.49 1.06 0.87
SPI4 Communication via Aliwangwang was warm. 4.35 1.09 0.85

Trusting beliefs (Gefen & Straub, 2004; McKnight et al., 2002)


Benevolence
BEN1 I believe that the seller would act in my best interest. 4.05 1.15 0.81
BEN2 If I required help, the seller would do his/her best to help me. 4.51 1.12 0.84
BEN3 The seller is interested in my well-being. 4.04 1.19 0.86
BEN4 I expect that the seller's intentions are benevolent 4.59 1.03 0.82
Integrity
IN1 Promises made by the vendor are likely to be reliable. 4.53 1.02 0.85
IN2 I do not doubt the honesty of the vendor. 4.58 1.07 0.86
IN3 The vendor is sincere and genuine. 4.60 0.97 0.89
IN4 I expect that the vendor will keep promises he/she make. 4.80 0.95 0.86
Competence
COM1 The vendor is competent and effective. 4.71 0.90 0.81
COM2 The vendor performs his/her role very well. 4.90 0.91 0.85
COM3 The vendor knows about the product. 5.11 1.04 0.79
COM4 The vendor knows how to provide excellent service. 4.82 1.00 0.82

Purchase intention (Gefen & Straub, 2004)


PI1 I am very likely to buy the product from seller. 4.95 1.14 0.89
PI2 I would consider buying the product from the seller in the future. 4.91 1.07 0.91
PI3 I intend to buy the product from the seller. 4.81 1.15 0.90

Control variables
Comment (Pavlou & Dimoka, 2006)
C1 The average rating of the vendor is high. 5.08 1.12 0.85
C2 The comments on the product are positive. 5.05 1.05 0.92
C3 The comments on the service are positive. 5.10 0.97 0.91
C4 Overall, the comments on the vendor are positive. 5.21 0.99 0.90
Trust disposition (Gefen & Straub, 2004)
TD1 I generally trust other people 4.49 1.22 0.72
TD2* I tend to count upon other people
TD3 I generally have faith in humanity 4.52 1.10 0.87
TD4 I feel that people are generally well meaning 4.79 1.03 0.87
TD5 I feel that people are generally trustworthy 4.52 1.09 0.87
TD6 I feel that people are generally reliable 4.42 1.12 0.85
Trust in marketplaces (Pavlou & Gefen, 2004)
TIM1 As the online marketplace, Taobao can be trusted at all times. 4.79 0.95 0.88
TIM2 As the online marketplace Taobao can be counted on to do what is right. 4.53 0.98 0.88
TIM3 As the online marketplace, Taobao has high integrity. 4.43 1.00 0.86
TIM4 Taobao is a competent and knowledgeable online transaction platform. 4.77 0.97 0.86
Perceived price fairness
PPF1 It is worth buying the product from this vendor with this price. 4.80 1.24 0.90
PPF2 The price of the product is competitive. 4.75 1.21 0.86
PPF3 My choice of this product with this price will be a wise one. 4.69 1.20 0.91
PPF4 I am satisfied with the price. 4.75 1.27 0.90
*
Item dropped from final analysis. All scales anchored by: 1-strongly disagree, 7-strongly agree.

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