Skip to main content
SpringerLink
Log in

Not all seals are equal: An experimental investigation of the effect of third-party seals on purchase probability in electronic commerce

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

Abstract

Many online retailers display third-party seals on their website in order to signal their trustworthiness to potential customers. However, it is unclear whether and under what conditions such seals are effective in raising purchase probability. This article adds to the literature by testing and comparing the efficacy of two third-party seals. Both seals are common in the European electronic commerce market, but their dissemination differs vastly. Results from an online laboratory experiment with 300 subjects show that the two seals are not effective on average. However, this result is driven by the low-dissemination seal; its insignificant effect masks the high-dissemination seal’s positive effect on purchase probability. Hence, evaluating third-party seals based on their average effect can be misleading. These results have important implications for electronic commerce research, consumer policy, online retailers, seal providers, and market analysts.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  1. Aiken, K. D., & Boush, D. M. (2006). Trustmarks, objective-source ratings, and implied investments in advertising: Investigating online trust and the context-specific nature of Internet signals. Journal of the Academy of Marketing Science, 34(3), 308–323.

    Article  Google Scholar 

  2. Akerlof, G. A. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488–500.

    Article  Google Scholar 

  3. Bahmanziari, T., Odom, M. D., & Ugrin, J. C. (2009). An experimental evaluation of the effects of internal and external e-assurance on initial trust formation in b2c e-commerce. International Journal of Accounting Information Systems, 10(3), 152–170.

    Article  Google Scholar 

  4. Bauer, R. A. (1960). Consumer behavior as risk taking. In R. S. Hancock (Ed.), Dynamic marketing for a changing world—Proceedings of the 43rd national conference of the American Marketing Association (pp. 389–398). Chicago: American Marketing Association.

  5. Baye, M. R., Morgan, J., & Scholten, P. (2006). Information, search, and price dispersion. In T. Hendershott (Ed.), Economics and information systems, Handbooks in information systems (Vol. 1, pp. 323–375). Amsterdam: Elsevier.

    Chapter  Google Scholar 

  6. Berkowitz, L., & Donnerstein, E. (1982). External validity is more than skin deep—Some answers to criticisms of laboratory experiments. American Psychologist, 37(3), 245–257.

    Article  Google Scholar 

  7. Calder, B. J., Phillips, L. W., & Tybout, A. M. (1981). Designing research for application. Journal of Consumer Research, 8(2), 197–207.

    Article  Google Scholar 

  8. Calder, B. J., Phillips, L. W., & Tybout, A. M. (1982). The concept of external validity. Journal of Consumer Research, 9(3), 240–244.

    Article  Google Scholar 

  9. Calder, B. J., Phillips, L. W., & Tybout, A. M. (1983). Beyond external validity. Journal of Consumer Research, 10(1), 112–114.

    Article  Google Scholar 

  10. Camerer, C. F., & Hogarth, R. M. (1999). The effects of financial incentives in experiments: A review and capital-labor-production framework. Journal of Risk and Uncertainty, 19(1–3), 7–42.

    Article  Google Scholar 

  11. Chen, M. Y., & Teng, C. I. (2013). A comprehensive model of the effects of online store image on purchase intention in an e-commerce environment. Electronic Commerce Research, 13(1), 1–23.

    Article  Google Scholar 

  12. Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed.). Mahwah: Lawrence Erlbaum Associates.

    Google Scholar 

  13. Cook, D. P., & Luo, W. (2003). The role of third-party seals in building trust online. e-Service Journal, 2(3), 71–84.

    Article  Google Scholar 

  14. Cox, D. F. (Ed.) (1967). Risk taking and information handling in consumer behavior. Boston: Harvard University.

  15. Cox, D. R. (1972). Regression models and life-tables. Journal of the Royal Statistical Society, 34(2), 187–202.

    Google Scholar 

  16. EHI Retail Institute. Accessed December 31, 2013, from http://www.shopinfo.net.

  17. Gregg, D. G., & Walczak, S. (2010). The relationship between website quality, trust and price premiums at online auctions. Electronic Commerce Research, 10(1), 1–25.

    Article  Google Scholar 

  18. Head, M. M., & Hassanein, K. (2002). Trust in e-commerce: Evaluating the impact of third-party seals. Quarterly Journal of Electronic Commerce, 3(3), 307–325.

    Google Scholar 

  19. Hey, J. D. (1991). Experiments in economics. Oxford: Blackwell.

    Google Scholar 

  20. Holsapple, C. W., & Sasidharan, S. (2005). The dynamics of trust in b2c e-commerce: A research model and agenda. Information Systems and e-Business Management, 3(4), 377–403.

    Article  Google Scholar 

  21. Houston, R. W., & Taylor, G. K. (1999). Consumer perceptions of CPA Webtrust assurances: Evidence of an expectations gap. International Journal of Auditing, 3(2), 89–105.

    Google Scholar 

  22. Hu, X., Lin, Z., & Zhang, H. (2003). Trust promoting seals in electronic markets: An exploratory study of their effectiveness for online sales promotion. Journal of Promotion Management, 9(1–2), 163–180.

    Article  Google Scholar 

  23. Hu, X., Wu, G., Wu, Y., & Zhang, H. (2010). The effects of web assurance seals on consumers’ initial trust in an online vendor: A functional perspective. Decision Support Systems, 48(2), 407–418.

    Article  Google Scholar 

  24. Initiative D21. Accessed December 31, 2013, from http://www.initiatived21.de.

  25. Jenkins, S. P. (1995). Easy estimation methods for discrete-time duration models. Oxford Bulletin of Economics and Statistics, 57(1), 129–138.

    Article  Google Scholar 

  26. Jiang, P., Jones, D. B., & Javie, S. (2008). How third-party certification programs relate to consumer trust in online transactions: An exploratory study. Psychology & Marketing, 25(9), 839–858.

    Article  Google Scholar 

  27. Johnson, E. J., Moe, W. W., Fader, P. S., Bellman, S., & Lohse, G. L. (2004). On the depth and dynamics of online search behavior. Management Science, 50(3), 299–308.

    Article  Google Scholar 

  28. Kaplan, S. E., & Nieschwietz, R. J. (2003). An examination of the effects of Webtrust and company type on consumers’ purchase intentions. International Journal of Auditing, 7(2), 155–168.

    Article  Google Scholar 

  29. Kaplan, S. E., & Nieschwietz, R. J. (2003). A web assurance services model of trust for b2c e-commerce. International Journal of Accounting Information Systems, 4(2), 95–114.

    Article  Google Scholar 

  30. Karni, E., & Schwartz, A. (1977). Search theory: The case of search with uncertain recall. Journal of Economic Theory, 16(1), 38–52.

    Article  Google Scholar 

  31. Kerkhof, P., & van Noort, G. (2010). Third party internet seals: Reviewing the effects on online consumer trust. In I. Lee (Ed.), Encyclopedia of e-business development and management in the global economy (pp. 701–708). Hershey: IGI Global.

    Chapter  Google Scholar 

  32. Keynes, J. M. (1936). The general theory of employment, interest and money. London: Macmillan.

    Google Scholar 

  33. Kim, D. J., Ferrin, D. L., & Rao, H. R. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision Support Systems, 44(2), 544–564.

    Article  Google Scholar 

  34. Kim, D. J., Steinfield, C., & Lai, Y. J. (2008). Revisiting the role of web assurance seals in business-to-consumer electronic commerce. Decision Support Systems, 44(4), 1000–1015.

    Article  Google Scholar 

  35. Kim, J. B. (2012). An empirical study on consumer first purchase intention in online shopping: Integrating initial trust and TAM. Electronic Commerce Research, 12(2), 125–150.

    Article  Google Scholar 

  36. Kim, K., & Kim, J. (2011). Third-party privacy certification as an online advertising strategy: An investigation of the factors affecting the relationship between third-party certification and initial trust. Journal of Interactive Marketing, 25(3), 145–158.

    Article  Google Scholar 

  37. Kimery, K. M., & McCord, M. (2002). Third-party assurances: Mapping the road to trust in e-retailing. Journal of Information Technology Theory and Application, 4(2), 63–82.

    Google Scholar 

  38. Kimery, K. M., & McCord, M. (2006). Signals of trustworthiness in e-commerce: Consumer understanding of third-party assurance seals. Journal of Electronic Commerce in Organizations, 4(4), 52–74.

    Article  Google Scholar 

  39. Kohn, M. G., & Shavell, S. (1974). The theory of search. Journal of Economic Theory, 9(2), 93–123.

    Article  Google Scholar 

  40. Kovar, S. E., Burke, K. G., & Kovar, B. R. (2000). Consumer responses to the CPA Webtrust assurance. Journal of Information Systems, 14(1), 17–35.

    Article  Google Scholar 

  41. Lala, V., Arnold, V., Sutton, S. G., & Guan, L. (2002). The impact of relative information quality of e-commerce assurance seals on internet purchasing behavior. International Journal of Accounting Information Systems, 3(4), 237–253.

    Article  Google Scholar 

  42. Lee, S. M., Choi, J., & Lee, S. G. (2004). The impact of a third-party assurance seal in customer purchasing intention. Journal of Internet Commerce, 3(2), 33–51.

    Article  Google Scholar 

  43. Lynch, J. G. (1982). On the external validity of experiments in consumer research. Journal of Consumer Research, 9(3), 225–239.

    Article  Google Scholar 

  44. Lynch, J. G. (1983). The role of external validity in theoretical research. Journal of Consumer Research, 10(1), 109–111.

    Article  Google Scholar 

  45. Lynch, J. G. (1999). Theory and external validity. Journal of the Academy of Marketing Science, 27(3), 367–376.

    Article  Google Scholar 

  46. Mascha, M. F., Miller, C. L., & Janvrin, D. J. (2011). The effect of encryption on Internet purchase intent in multiple vendor and product risk settings. Electronic Commerce Research, 11(4), 401–419.

    Article  Google Scholar 

  47. Mauldin, E., & Arunachalam, V. (2002). An experimental examination of alternative forms of web assurance for business-to-consumer e-commerce. Journal of Information Systems, 16(S–1 (Supplement)), 33–54.

    Article  Google Scholar 

  48. McGrath, J. E., & Brinberg, D. (1983). External validity and the research process: A comment on the Calder/Lynch dialogue. Journal of Consumer Research, 10(1), 115–124.

    Article  Google Scholar 

  49. McKnight, D. H., Choudhury, V., & Kacmar, C. (2002). Developing and validating trust measures for e-commerce: An integrative typology. Information Systems Research, 13(3), 334–359.

    Article  Google Scholar 

  50. McKnight, D. H., Kacmar, C. J., & Choudhury, V. (2004). Shifting factors and the ineffectiveness of third party assurance seals: A two-stage model of initial trust in a web business. Electronic Markets, 14(3), 252–266.

    Article  Google Scholar 

  51. Miyazaki, A. D., & Krishnamurthy, S. (2002). Internet seals of approval: Effects on online privacy policies and consumer perceptions. Journal of Consumer Affairs, 36(1), 28–49.

    Article  Google Scholar 

  52. Moores, T. (2005). Do consumers understand the role of privacy seals in e-commerce? Communications of the ACM, 48(3), 86–91.

    Article  Google Scholar 

  53. Moorthy, S., Ratchford, B. T., & Talukdar, D. (1997). Consumer information search revisited: Theory and empirical analysis. Journal of Consumer Research, 23(4), 263–277.

    Article  Google Scholar 

  54. Nöteberg, A., Christiaanse, E., & Wallage, P. (2003). Consumer trust in electronic channels: The impact of electronic commerce assurance on consumers’ purchasing likelihood and risk perceptions. e-Service Journal, 2(2), 46–67.

    Article  Google Scholar 

  55. Odom, M. D., Kumar, A., & Saunders, L. (2002). Web assurance seals: How and why they influence consumers’ decisions. Journal of Information Systems, 16(2), 231–250.

    Article  Google Scholar 

  56. Özpolat, K., Gao, G., Jank, W., & Viswanathan, S. (2013). The value of third-party assurance seals in online retailing: An empirical investigation. Information Systems Research, 24(4), 1100–1111.

    Article  Google Scholar 

  57. Park, I., Bhatnagar, A., & Rao, H. R. (2010). Assurance seals, on-line customer satisfaction, and repurchase intention. International Journal of Electronic Commerce, 14(3), 11–34.

    Article  Google Scholar 

  58. Patton, M. A., & Jøsang, A. (2004). Technologies for trust in electronic commerce. Electronic Commerce Research, 4(1–2), 9–21.

    Article  Google Scholar 

  59. Perdue, B. C., & Summers, J. O. (1986). Checking the success of manipulations in marketing experiments. Journal of Marketing Research, 23(4), 317–326.

    Article  Google Scholar 

  60. Portz, K., Strong, J. M., Busta, B., & Schneider, K. (2000). Do consumers understand what Webtrust means? CPA Journal, 70(10), 47–52.

    Google Scholar 

  61. Portz, K., Strong, J. M., & Sundby, L. (2001). To trust or not to trust: The impact of Webtrust on the perceived trustworthiness of a web site. Review of Business Information Systems, 5(3), 35–49.

    Google Scholar 

  62. Ratchford, B. T., Lee, M. S., & Talukdar, D. (2003). The impact of the Internet on information search for automobiles. Journal of Marketing Research, 40(2), 193–209.

    Article  Google Scholar 

  63. Rodríguez, G., & Elo, I. (2003). Intra-class correlation in random-effects models for binary data. Stata Journal, 3(1), 32–46.

    Google Scholar 

  64. Rothhaar, M., Spreer, P., & Schrumpf, C. (2013). Gütesiegel in deutschen Onlineshops—Bekanntheit, Vertrauen und Benchmarking. Munich: Elaboratum GmbH.

    Google Scholar 

  65. Rüdiger, K. (2008). Gütesiegel als vertrauensbildende Institution im Online-Handel. Bochum: Institut für Sicherheit im E-Business.

    Google Scholar 

  66. Schotter, A., & Braunstein, Y. M. (1981). Economic search: An experimental study. Economic Inquiry, 19(1), 1–25.

    Article  Google Scholar 

  67. Sha, W. (2009). Types of structural assurance and their relationships with trusting intentions in business-to-consumer e-commerce. Electronic Markets, 19(1), 43–54.

    Article  Google Scholar 

  68. Shadish, W. R., Cook, T. D., & Campbell, D. T. (2002). Experimental and quasi-experimental designs for generalized causal inference. Boston: Houghton Mifflin.

    Google Scholar 

  69. Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Boston: Harvard Business School Press.

    Google Scholar 

  70. Singer, J. D., & Willett, J. B. (2003). Applied longitudinal data analysis: Modeling change and event occurence. Oxford: Oxford University Press.

    Book  Google Scholar 

  71. Smith, R., & Shao, J. (2007). Privacy and e-commerce: A consumer-centric perspective. Electronic Commerce Research, 7(2), 89–116.

    Article  Google Scholar 

  72. Smith, V. L. (1976). Experimental economics: Induced value theory. American Economic Review, 66(2), 274–279.

    Google Scholar 

  73. Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374.

    Article  Google Scholar 

  74. Stigler, G. J. (1961). The economics of information. Journal of Political Economy, 69(3), 213–225.

    Article  Google Scholar 

  75. Trusted Shops. Accessed December 31, 2013, from http://www.trustedshops.de.

  76. Urban, G. L., Amyx, C., & Lorenzon, A. (2009). Online trust: State of the art, new frontiers, and research potential. Journal of Interactive Marketing, 23(2), 179–190.

    Article  Google Scholar 

  77. Utz, S., Kerkhof, P., & van den Bos, J. (2012). Consumers rule: How consumer reviews influence perceived trustworthiness of online stores. Electronic Commerce Research and Applications, 11(1), 49–58.

    Article  Google Scholar 

  78. Van Baal, S. (2006). Informationsquellen der Onlineshopper bei der Vorbereitung von Käufen im Internet und im stationären Handel. In V. Trommsdorff (Ed.), Handelsforschung 2006 (Vol. 20, pp. 135–151). Stuttgart: Kohlhammer.

    Google Scholar 

  79. Wakefield, R. L., & Whitten, D. (2006). Examining user perceptions of third-party organization credibility and trust in an e-retailer. Journal of Organizational and End User Computing, 18(2), 1–19.

    Article  Google Scholar 

  80. Wang, S., Beatty, S. E., & Foxx, W. (2004). Signaling the trustworthiness of small online retailers. Journal of Interactive Marketing, 18(1), 53–69.

    Article  Google Scholar 

  81. Wilde, L. L. (1987). Consumer behavior under imperfect information: A review of psychological and marketing research as it relates to economic theory. In L. Green & J. H. Kagel (Eds.), Advances in behavioral economics (Vol. 1, pp. 219–248). Norwood: Ablex Publishing.

    Google Scholar 

  82. Winer, R. S. (1999). Experimentation in the 21st century: The importance of external validity. Journal of the Academy of Marketing Science, 27(3), 349–358.

    Article  Google Scholar 

  83. Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data (2nd ed.). Cambridge: MIT Press.

    Google Scholar 

  84. Zhang, H. (2005). Trust-promoting seals in electronic markets: Impact on online shopping decisions. Journal of Information Technology Theory and Application, 6(4), 29–40.

    Google Scholar 

  85. Zhang, J., Fang, X., & Sheng, O. R. L. (2007). Online consumer search depth: Theories and new findings. Journal of Management Information Systems, 23(3), 71–95.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Cologne Institute for Economic Research, Konrad-Adenauer-Ufer 21, 50668, Cologne, Germany

    Sebastian van Baal

Authors
  1. Sebastian van Baal
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sebastian van Baal.

Appendix: Literature overview

Appendix: Literature overview

See Table 6.

Table 6 Literature overview
Full size table

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

van Baal, S. Not all seals are equal: An experimental investigation of the effect of third-party seals on purchase probability in electronic commerce. Electron Commer Res 15, 177–206 (2015). https://doi.org/10.1007/s10660-015-9180-9

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10660-015-9180-9

Keywords

Search

Navigation