Research Note ---The Value of Third-Party Assurance Seals in Online Retailing: An Empirical Investigation

Koray Özpolat (), Guodong (Gordon) Gao (), Wolfgang Jank () and Siva Viswanathan ()
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Koray Özpolat: College of Business Administration, University of Rhode Island, Kingston, Rhode Island, 02881
Guodong (Gordon) Gao: Robert H. Smith School of Business, University of Maryland, College Park, Maryland, 20742
Wolfgang Jank: College of Business, University of South Florida, Tampa, Florida, 33620
Siva Viswanathan: Robert H. Smith School of Business, University of Maryland, College Park, Maryland, 20742

Information Systems Research, 2013, vol. 24, issue 4, 1100-1111

Abstract: Third-party quality assurance seals have emerged as a prominent mechanism to reduce uncertainty and increase purchase conversion in online markets. However, systematic studies of the effectiveness of these seals are scarce. In this study, we exploit a unique data set of 9,098 shopping sessions at an online retailer's website to empirically measure the value and effectiveness of assurance seals on the likelihood of purchase by shoppers. The data set is collected from a randomized field experiment conducted by a large seal provider, which enables us to infer the causal impacts of the presence of an assurance seal. We find strong evidence that the presence of the assurance seal increases the likelihood of purchase conversion. We discuss the implications of our findings for online retailers, third-party certifiers, policymakers, and researchers.

Keywords: electronic commerce; online certification; online assurance seals; trust seals; information asymmetry; field experiments (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orisre:v:24:y:2013:i:4:p:1100-1111

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