One instance in which the commitment-trust theory has actually been applied includes that of the online retail industry (Hashim & Tan, 2015). Online retailing has been plagued by a trust issue, especially in developing countries in which online retailing is likely to flourish to a high degree. Trust is especially important in this environment, as consumers provide sensitive information in the form of both financial and personal information over the internet. Online retailers have attempted to respond to these concerns by encrypting financial data and being willing to reimburse consumers for orders that are not filled satisfactorily.
Retailers have also used these features to create an emotional bond with the consumer that is enduring, even in instances where mistakes are made (Amani, 2015). Commitment is also important to online retailers. Online retailers have been able to show that they are committed to the consumer through their actions with regard to the elimination of factors that keep consumers as customers simply because they are less dissatisfied than they are with the competitor (Amani, 2015). One way that online retailers have been able to accomplish this is through attractive pricing structures as well as the development of relationships with outside organizations that expand the offerings available through these retailers beyond what traditional retailers offer (Amani, 2015).
Application of the Commitment-Trust Theory in an online environment
Online retailing is still a fairly new concept in its current form, but the application of this theory in this environment is premised upon an accurate understanding of theory and its scope. In fact, online retailing is uniquely positioned as an environm...
... middle of paper ...
... who provides their health care, they are still bound by whether their physician has privileges at a given hospital, so the system is not completely free choice. Therefore, there are additional factors in place that limit the scope of this theory to some extent in determining buyer-seller relationships.
The reasoning behind linking commitment and trust in this environment is sound, and is the case to the extent that physicians also form a commitment-trust relationship with hospitals. This commitment propels hospitals to also require a high level of commitment from medical equipment suppliers in order to satisfy health care providers in the form of physicians. In addition, this relationship means that application, in this instance, is highly appropriate given the competitive environment formed by a complex set of relationships that makes up the health care system.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- How the Trust-Commitment Theory has been applied The view discussed in Part I of this document is one of the inconsistencies between theory and practice. In other words, many practitioners in a business environment feel that academicians are out of touch with the business community. There is also a knowledge transfer problem in that it is difficult, in some cases, for businesspeople to figure out the theories that researchers are attempting to explain through the available literature. In addition, not every manager has an MBA or DBA, and this factor also influences whether managers effectively put theory into practice.... [tags: Retailing, Online shopping, Business, Shopping]
1042 words (3 pages)
- This assignment is going to be based on the meaning of retailing, then going to describe the many ways and places in which retail is conducted. I am going to identify the changes that are taking place in the industry structure. I am going to list trends in the number of retailer types and employment characteristics of the sector. P1 The word retailing entails the process or activity through which businesses put forward goods and services for consumers to purchase for their personal, family or household use.... [tags: Retailing, Online shopping, Shopping]
1401 words (4 pages)
- Place Online retailing with information empowering customers’ personal choice can be safely recommended for the diet pill introduction as research show that Australian middle aged women, our target market, are the biggest spender, as McMahon (2012) presented. Also, in consideration of company’s relatively small scale, only owning one shop, and the background of Australian promising prospect of online shopping (4102.0 - Australian Social Trends, Jun 2011 2011). The internet can help it shape a more cost-efficient business model by omitting some parts of the value chain (Allen and Fjermestad 2001).... [tags: Electronic commerce, Online shopping, Middle age]
729 words (2.1 pages)
- The Online Retailing/e-Tailing E-tailing is the market of selling retail goods on the internet. The abbreviated version of “electronic retailing” is basically part of business to business transactions First of all, the structure of online retail market is divided into two categories they are vertical focused and multi category. Vertical focused mainly deals with specific goods like apparels, electronics and baby products, in the multi category it deals with all the categories of goods, the main aim of the online retailing is to grab the customers by offering large discounts on products.... [tags: market, deals, revenue]
830 words (2.4 pages)
- E retailing is stands for electronic retailing, which is the concept related to the transaction between businesses to consumer (B2C) that transaction through Internet. E tailing can play the role of pure play business. The E-retailer requires many displays and need a lots of reference of products and specification of the products are important as the feeling of the customers are based on the information provide by the retailer. The companies, such as Amazon, they have created the online industry from searching and browsing the products through websites and paying through Internet and online banking.... [tags: Retailing, Online shopping, Inflation, Shopping]
706 words (2 pages)
- What is trust. According to Merriam-Webster’s Online Dictionary, trust is an assumed reliance or the character, ability, and strength of someone or something. My definition of trust is someone who can do something without being checked up on or being able to depend on someone. The focus of this essay will be trust. I will go in depth on trust at home, school and trust in general. Follow me on this journey as I explain why trust is needed and how it betters your character. Let’s begin… Trust is needed everywhere you go.... [tags: Trust]
416 words (1.2 pages)
- Empathy and Commitment as the Basis for Trust In Philoctetes by Sophocles, Odysseus commands Neoptolemos to abandon justice and base a relationship with Philoctetes on dishonesty to gain his trust and ultimately his bow. However, Neoptolemos acknowledges a similar burden plagues Philoctetes that becomes the basis of trust between them. Neoptolemos attempts to reconcile with Odysseus’ orders by stealing the bow and abandoning Philoctetes. Unable to fulfill the orders, Neoptolemos returns to Philoctetes indicating his commitment and his lack of trust with the Atreidai.... [tags: Literature Review]
1582 words (4.5 pages)
- Nowadays, online shopping is a phenomena that all people are into and it is one of the greatest aspects of the internet. (Wong, 2013) found 91 percentage people shop online. Out of 9 percentage did not shop online, it is because they do not trust the shop online and another reason why because they cannot touch and feel the product. Shopping is being habituated in a student’s life, especially online shopping. Shopping and students, especially girls cannot be separated. The advantages of shopping online are like high-speed internet service and 24/7 availability that encourage students to update their fashion style which communicate meanings that it has individual and social significance.... [tags: Online shopping, Retailing]
1500 words (4.3 pages)
- Shopping has always been one of my favorite hobbies. The hardest part is choosing which is better at that moment, online shopping or in-store shopping. I personally love to do both, especially when there are sales, because sometimes online may have a better sale than in store and vice versa. In the real world real shoppers will know that Online and in-store shopping differentiates in various ways. However, depending on the situation they both are sometimes convenient ways to shop.... [tags: Online shopping, Retailing, Shopping]
839 words (2.4 pages)
- What are the elements of a good online retailing (e-tailing) website. Give examples, including the web address of a firm's website that you feel uses these elements successfully The online stores are nothing but an extension of retailing. In net terminology it is known as E-tailing. If you go by definition, it is “E-tailing refers to retailing over the internet. Thus an e-tailor is a B2C business that executes a transaction with the final consumer. E-tailors can be pure play businesses like Amazon.com or businesses that have evolved from a legacy business, Tesco.com.... [tags: essays research papers fc]
8316 words (23.8 pages)