Question

Topic: Student Questions

Companies Operating In The Online Environment...

Posted by Anonymous on 5/10/2011 at 4:23 AM ET 125 Points
are not to be trusted.

For my 4th year International Communication and Media I got the assignment to start a discussion about a communication-related subject. The statement for this discussion is:

"Companies operating in the online environment are not to be trusted."

E-commerce isn't a new phenomenon any more, but our understanding of the factors that affect transactions between online companies and customers can sometimes be insufficient. The amount of web users grows daily - there are over 2 billion internet users already - and over 80% of these people make purchases online. But how much do you know of what's going on behind the scenes; can you trust the companies you place your order with?

Agree or disagree?
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RESPONSES

  • Posted on 5/10/2011 at 8:44 AM Author
    Yes I know that it is the individuals' opinion based on experiences. That is exactly what I would want a discussion about. The point isn't whether it is true or false (perhaps there isn't even a good answer to that) but what people think.
    I would love responses on the question with people's personal opinions, and then followed by a discussion. not just a theoretical answer yes or no..
  • Posted on 5/10/2011 at 10:50 AM Accepted
    People who have not been to a dentist in the last 12 months are not to be trusted. They have not demonstrated enough responsibility to even check their own dental health. How can we believe anything they say?

    Any sweeping generalization is obviously absurd.
  • Posted by Jay Hamilton-Roth on 5/10/2011 at 10:59 AM Accepted
    Think about what's the difference between the person who owns an online business and the person who owns a brick-and-mortar business. Either business owner can provide great service, great prices, and great selection. So why the edge to brick-and-mortar business? Human Psychology.
  • Posted by Gary Bloomer on 5/10/2011 at 7:46 PM Accepted
    So, "Companies operating in the online environment are not to be trusted."

    Tosh!

    Online, transactions take place when the buyer feels
    they they know, like, and trust the vendor, or, when the buyer believes that the value received will outweigh the investment of the fee paid. This is marketing 101.

    The bigger question here has nothing to do with the trust between online buyers and sellers, it's more to do with how you, as a 4th year International Communication and Media, student have permitted yourself into be railroaded with this statement?

    The statement is flawed, which means your results will be flawed. Why? By stating this point on this forum, you're receiving opinions from marketing people, so your research group's insider knowledge sways (and drastically alters) your results.

    You might be better off asking a random group of
    people to help you—people, that have no background in marketing. And if you're going to state something, at least make it a question based on what people think—a question along the lines of:

    On a scale of 1 to 10, 1 being the lowest, how much do you trust the online vendors you have bought goods and services from in the past two years?

    Plus a good number of other control questions.

    The other point here is the notion of "how much do you know of what's going on behind the scenes?"

    As long as the order is fulfilled, why is what goes on behind the scenes of any interest to the buyer? The grim truth here is simple: Nobody cares!

    Teachers that can't teach are not to be trusted.

    Doctors that don't cure patients are not to be trusted.

    People that believe in the same deity as "us" are not to be trusted.

    Students that can't do their own homework are not to be trusted.

    "... but our understanding of the factors that affect transactions between online companies and customers can sometimes be insufficient."

    Insufficient compared to what?



  • Posted on 5/11/2011 at 4:47 AM Author
    So Gary: Yes, online transactions take place when the buyer feels the seller can be trusted. The question is: is the buyer right to trust the seller? For example the Chinese Alibaba case just recently ( https://www.365online.nu/02/e-commerce-weblogs/can-alibaba-restore-trust-af... )

    They have a Gold Supplier system, which gives authenticated sellers a stamp of 'trustworthy'. Employees inside Alibaba have, either negligently or knowingly, given the stamp to 2500 sellers that after receiving the Gold Supplier stamp committed fraud. How can the consumer ever trust this system of Alibaba - or any comparable organization for that matter - again? At least anytime soon?
  • Posted by Gary Bloomer on 5/11/2011 at 7:27 AM Member
    "... is the buyer right to trust the seller?" in the case of Alibaba, I'd say no. But without some degree of trust, commerce stops.

    Foe every 1,000 positive online experiences there are a handful of negatives, yet rather than focus on the good,
    we focus on the bad.


  • Posted on 5/11/2011 at 7:53 AM Moderator
    There is no "right" or "wrong" in trusting someone if that person (or organization) has not demonstrated that it is or is not trustworthy.

    We trust people we don't know all the time. We trust an airline pilot every time we board a plane for a flight somewhere. We don't know that pilot, but we trust that s/he will get us to the correct destination safely. Perhaps we do that because we believe that the airline has vetted the pilot and guarantees the safe result, but we don't really know the airline either. (After all, the airline is just a collection of individuals whom we don't know, right?)

    Same with taxi drivers. Same with the people working in a restaurant when we order a meal. We trust them to do what they say they do. If we learn that they betrayed that trust, we probably won't trust them next time.

    Why is it any different with an online merchant? The way your question is stated, it looks like you're on a bit of a witch hunt. Why would online merchants be any less trustworthy than anyone else? (Of course there are bad apples everywhere, but I'm not aware of any evidence that says bad apples are found mostly online -- especially if you use some common sense in selecting the organizations with whom you deal.)
  • Posted on 5/11/2011 at 12:46 PM Author
    I'm not on a witch hunt, I simply chose to put the statement in such a way that I thought would provoke the most response.

    I partially agree with the statement on 'online and brick-and-mortar companies can provide same services'. Yes, they could provide the same service and quality. Could. My thought however, is that with the brick-and-mortar company you visit the store, have face-to-face contact with the seller and you can go back whenever there is something wrong with your product. You could even decide not to purchase anything as soon as you get the idea something is fishy about the place/person. With online based companies that is not the case, you don't see faces, you don't talk to people, sometimes it's not even clear where the head offices of such a company are.

    Doesn't the anonymity of the selling party make you think twice before you purchase something online?
  • Posted by Gary Bloomer on 5/11/2011 at 5:45 PM Member
    Does the anonymity of the kitchen staff make you think twice before you order in a restaurant?

    Does the anonymity of the train driver make you think twice before you board a train?

    Does the anonymity of the factory worker make you think twice before you buy a pair of jeans?

    Does the anonymity of the TV anchor make you think twice before you believe the news broadcast?

    Many of the thousands of small business owners selling things online use photographs, video, audio, and social links such as testimonials and social media to back up and support their reputation as being worthy of trust.

    You pays your money and you takes your chances.
    We each make thousands of decisions and thousands of assumptions every day based on trust: crossing the street, ordering lunch, not thinking about the electricity powering our computers, and on and on. Without some degree of trust (given and taken) the world would grind to a halt.


  • Posted on 5/11/2011 at 6:45 PM Moderator
    You ask: Doesn't the anonymity of the selling party make you think twice before you purchase something online?

    My response: Not any more than the anonymity of the dozens of people I trust every day -- some with far more impact on my life and health. Think about a pharmacist you never meet face-to-face; a pilot in the cockpit of an airplane who may or may not even get on the PA system to welcome me, but whose skill as a pilot could well affect my life; a lab assistant somewhere who provides test results to my physician; etc., etc., etc.

    And my experience with online commerce has been almost entirely positive. Amazon has always delivers what I order on time. My electronic bank statements show up accurately every month, with my balances accurately computed. Credit card bills are mostly very reliable, and the providers make adjustments promptly when there is a problem or discrepancy. Etc. (I could probably name dozens of other examples.)

    Net: I think you're inventing a bogeyman that doesn't exist.
  • Posted on 5/12/2011 at 2:30 AM Author
    Sure, I agree that without a certain level of trust you get nowhere. The examples you give, however, sound like organizations you chose to do buy from, to fly with, etc. A railroad operating company that's been around for years is to be granted some trust; you'd assume they know what they're doing and who they're training and hiring. When you go to the Gap you expect a certain quality standard in clothing because it is the Gap and no 2nd hand something.

    But what about new companies, ones you haven't heard of before? How do you know you can trust their services? Would you do research on them before placing an order?
  • Posted on 5/12/2011 at 7:48 AM Accepted
    I buy a lot of things online from companies. I only once have had problems with a purchase and that was on a trade site from a private person and not a real company.

    I trust them to do their job, and as long as I get my item and I know that my money transactions are safe I have no reason to question the company.

    Sure I look at reviews before I make a purchase, specially if its from trade sites like Ebay or similar to see if other people have had issues with that trader, but if no alarming comments are made I trust it.

    If I'm buying a item that are usually a high price and if I find it to a low price I would question it before buying, check into if the item is really the real thing or a fake knock off. For example a lot of sites online selling designer shoes at 5 times cheaper than the usual price, I would check into it.
  • Posted by Gary Bloomer on 5/12/2011 at 7:57 AM Member
    Companies along the lines of, oh, let's see: Zappos, Amazon, Facebook, Twitter, YouTube, MySpace, Huffington Post, and dozens more (hundreds), many of these companies are under ten years old, others are less than five years old.

    Did you do research on this forum before signing up? What about Facebook? Did you read its terms and conditions and check them with legal counsel before you signed up? How far will YOU go to establish trust? What steps to YOU take to ensure reliability? Safety? Security?

    Many of the companies you and I will be doing business with in 2015 don't yet exist.

    How will we know who to trust in four years time?

    How do you know you can trust a response from anyone on this forum?

    Perhaps all the responses you've received thus far are
    all from just one person.

    Perhaps they're all computer generated. Perhaps this forum is not here at all and you are a hologram.
  • Posted on 5/12/2011 at 4:57 PM Accepted
    As a frequent online buyer, I highly disagree. I think online shops are very trustworthy and I have never had any bad experiences. I love online shopping because it is so convenient. I think that brands that have an online shop are wise because people buy more and more stuff online. Of course, you must be careful too, because their are some people that might want to take advantage of your trust. Be especially careful with buying products online from people that sell independently and that sell large items like cars or motorcycles. Or expensive things like designer clothing, Ipads and Iphones. I have heard of people that paid up front, but did not receive their product. Always check for peoples references online. And check for brands and labels to see whether or not a product is real.
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