Research On The GH’s Institution-Based Trust System

In recent years, promoted by the rapid development of the Internet and in support of government policies of China, the Chinese e-commerce has maintained a rapid pace of development. Especially in the online shopping market, it is rising higher and higher that the proportion of the total shares of online shopping market transaction in the total retail sales of social consumer goods. The online shopping market gradually releases a huge potential. The past two years, with the applied of O2O e-commerce model in local life services, which is gradually recognized and respected by consumers, the 020 e-commerce of local life service’s market will be a fertile piece of land to be developed. However, under the background of rapid development of Chinese e-commerce, what restrict the healthy development of China’s e-commerce is the series of distrust issues, such as selling fake commodities, false promotional, false promises and online fraud.In the 020 e-commerce of local life service’s market, because of the intangible nature of services and the increasing uncertainty of transaction, consumers trust issues appear more prominent. In this paper, the author selects a trading site-"GH Service Aggregation Platform" as the object to study the trust system building for O2O e-commerce of local life service’s website.The author has found that the risks are closely associated with consumers trust and the level of consumers’perceived risks affect their intentions of online shopping. While the levels of consumers’ perceived risks are higher than their psychological expectations, it will be difficult for consumers to establish trust relationship with the online vendor, and thus it will hinder the conduct online transactions. Therefore, the consumers’ perception of risks is one of the factors, which hinder the consumers trust relationship established in e-commerce environment. Since that trust will be accompanied by risk-taking behavior, various people’s attitudes of trust vary. People’s upbringing, living environment, social culture and values will result differently in people’s attitudes of trust. However, as the plasticity of trust, the Institution-based Trust has been considered to be the most universality and equity trust. Institution-based Trust is the key to promote consumers trust establishment in the e-commerce environment. Institution-based Trust ensures the e-commerce activities smoothly by specific institution and structure, which enable people to establish a trust relationship in an institutionalized way.After the analysis of risk and trust establishment respectively, the author considers that there are two ways for GH to build its trust system. That is to reduce the consumers’ perception of risks and to increase the trust relationship by same mechanism. So the author proposes an Institution-based Trust model for GH. The author suggests that GH should focus on the website Institutional building when it builds its trust system. GH’S Institution-based Trust System contains security mechanism, incentive and restraint mechanisms. Considering the three dimensions of Institution-based Trust, the author will design a framework for GH’S Institution-based Trust System.