Abstract:

Online shopping malls are classified into B2C e-commerce (herein, “Internet shopping malls”) and
C2C e-commerce (herein, “online open marketplaces”). In general, Internet shopping mall merchandisers are responsible for product management, ranging from product sourcing to marketing and after-sales service. A key difference between Internet shopping malls and online open marketplaces lies in the level  of responsibility they assume for quality assurance, payment, transportation, and returns/refunds. Online open marketplaces offer only a secure trading environment for sellers and buyers, who must take charge of their transactions. Thus, the role of trust in online open marketplaces is more critical to successful business strategies than in Internet shopping malls. Open marketplaces have been developing and implementing a wide range of policies and mechanisms to build trust because such activities represent one of the most critical factors influencing sustainable business activities. Through a comparative study employing content analysis and a number of Korea’s leading companies, we examine trust-building policies and mechanisms and investigate the implications for practitioners and theorists. We present 10 criteria for evaluating trust-building polices and strategies.