Trust Build-Up in Online Transactions - Empirical Analysis of Taobao´s Trust Mechanism

In building up trust in online transactions, Taobao´s trust mechanism fulfils a practical function at three levels. Firstly, at the level of technology, the immediate communication tool - Taobao Wangwang facilitates online communications remarkably; the third party payment instrument - Zhifubao ensures the Internet payment security to a great degree. Secondly, at the level of institution, besides identity authentication system, the reputation evaluation institution and the newly released compensation-in-advance rule in customer security plan, guarantee online buyers´ rights noticeably. Thirdly, at the level of psychology, research of Taobao´s loving care project presents a close correlation between morality and transaction trust.