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Abstract

Internet retailing has significantly changed the character of retail competition. More and more often, ordinary consumers, not just the technologically savvy ones, are making purchases over the Internet. The extent to which e-tailers can build trust will significantly influence the willingness of consumers to make purchases over the Internet. As a result, it is important to better understand the factors that influence consumers' trust in e-tailers. This research models the effects of store name, on-line security guarantee, and money-back guarantee on price expectations and willingness to buy. The results suggest that value-enhancing approaches, like assurances of security encryption and money-back guarantees, are more important for less well-known e-tailers than for their more famous competitors. © 2003 Wiley Periodicals, Inc.