Online Retailing : The Commitment Trust Theory Essay

Online Retailing : The Commitment Trust Theory Essay

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Online retailing
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...

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... 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.

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