E-commerce: the role of familiarity and trust

Familiarity is a precondition for trust, claims Luhmann [28. Luhmann N. Tru st and power. Chichester, UK: Wiley, 1979 (translation from German)], and t rust is a prerequisite of social behavior, especially regarding important d ecisions. This study examines this intriguing idea in the context of the E- commerce involved in inquiring about and purchasing books on the Internet. Survey data from 217 potential users support and extend this hypothesis. Th e data show that both familiarity with an Internet vendor and its processes and trust in the vendor influenced the respondents' intentions to inquire about books. and their intentions to purchase them. Additionally, the data show that while familiarity indeed builds trust, it is primarily people's d isposition to trust that affected their trust in the vendor. Implications f or research and practice are discussed. (C) 2000 Elsevier Science Ltd. All rights reserved.