A new perspective of e-trust in the era of social media: insights from customer satisfaction data

Ramanathan, U. ORCID: 0000-0002-7473-4643, Williams, N.L., Zhang, M. ORCID: 0000-0001-8033-8420, Sa-nguanjin, P., Garza-Reyes, J.A. and Borges, L.A., 2020. A new perspective of e-trust in the era of social media: insights from customer satisfaction data. IEEE Transactions on Engineering Management. ISSN 0018-9391

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Managerial relevance: In this competitive business world, social media penetrates online sales very rapidly. Businesses operating online are required to provide a safe and secured environment for customers to ensure their satisfaction. Our research results confirm that in addition to social media advertising, guaranteed 'e-safety' for customers will help establishing trust between the customer and the online businesses; it is also viewed important for present and future sales. The social media reviews need to be incorporated in managerial decision making. We try to analyse how these reviews are changing over the period of time and what are the ways to enhance customer satisfaction using information on customer expectations. This paper can help service companies to position their websites to compete in the market. Abstract In this era of social media, products and services are sold globally using a few simple clicks online. In such online purchases, trust and familiarity are considered two important driving forces of consumer decision making. While online sales advocate high levels of flexibility and choices for consumers, they also hold the online service provider responsible for ensuring the security of the online user's data. Using a Structural Equation Model (SEM) with data collected from the online service industry, we test the direct effects of 'social media-induced purchase intention' on customer satisfaction. We also test the mediating role of e-commerce/online sales (e-advertisement, e-safety and e-information) on customer satisfaction. In addition to social media advertising and information sharing, we find that a new factor-'e-safety'-mediates the relationship between customer purchase intention and customer satisfaction. Our analysis indicates that online e-trust can be established between the customer and the service company when online purchases are made. At the same time, the quality of online information and e-safety of online payments make the service company trustworthy for future purchases. We relate data analysis directly to managerial decision making to avoid any delay in online customer services in the era of social media.

Item Type: Journal article
Publication Title: IEEE Transactions on Engineering Management
Creators: Ramanathan, U., Williams, N.L., Zhang, M., Sa-nguanjin, P., Garza-Reyes, J.A. and Borges, L.A.
Publisher: Institute of Electrical and Electronics Engineers
Date: 20 May 2020
ISSN: 0018-9391
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 01 Apr 2020 14:43
Last Modified: 29 May 2020 08:32
URI: https://irep.ntu.ac.uk/id/eprint/39529

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