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ECT News Community   »   E-Commerce Times Talkback   »   Re: Turning the Risk Discount Into a Trust Premium



Re: Turning the Risk Discount Into a Trust Premium
Posted by: Steven L. Woda 2007-06-25 06:51:27
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Buyers are naturally cautious when considering whether or not to make a purchase from unfamiliar merchants. Even if this anxiety is not justified, the effect on online retailers is often detrimental. Shopper anxiety creates a complicated challenge for online merchants, especially ones without national, trusted brands. This phenomenon -- a lack of consumer confidence -- is called the "risk discount," which states that buyers who perceive risk when making a purchase will discount the price they are willing to pay.


Re: Turning the Risk Discount Into a Trust Premium
Posted by: TrustEnabler 2007-06-25 14:18:55 In reply to: Steven L. Woda
Similarly, my research has revealed far broader and more profound business and economic performance benefits from increased levels of trust. See "The Facts on Trust" at http://trustenablement.com/opt/The_Facts_on_Trust.pdf.
It is surprising that management is so adept at managing risk (a defensive strategy), but nearly oblivious to enabling trust (an offensive strategy).

Re: Turning the Risk Discount Into a Trust Premium
Posted by: swoda 2007-06-25 06:56:56 In reply to: Steven L. Woda
If you are interested in this subject, you can read more articles on my blog, "Steve Woda's Blog: buySAFE, eCommerce, Trust and Safety", at http://blog.swoda.com . Thanks. - Steve Woda
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