Aussies wary of online-only retailers

Despite Australia’s ongoing online shopping boom, local consumers consider online-only retailers to be the least trustworthy members of the retail industry, according to new research from Monash University.

The Monash University Business School’s first Australian Consumer, Retail, and Services (ACRS) Consumer Retail Trust Index survey found that online retailers are rated far below supermarkets and most other physical stores in terms of consumer trust.

Exceptions included discount variety stores and discount department stores, which were also considered generally untrustworthy.

The survey also found that information security is one of five important factors influencing consumer trust in a retailer. The other key factors are communications, product quality, store presentation and perceptions of employees.

But the degree of influence for each of these factors varies depending on the type of store. For example, information security is particularly important for supermarkets, because consumers need to be able to trust that the information they share as part of supermarket rewards schemes is secure.

ACRS Senior Research Consultant Dr Eloise Zoppos said the findings underscore the need for retailers to understand the factors driving consumer trust so they can use this insight to refine their business operations.

“Our research found that trust has a strong impact on loyalty and likelihood to recommend, including the Net Promoter Score — a tool used to gauge the loyalty of a firm’s customer relationships,” she said.

“Trust varies greatly by retail sector. Brands and retailers need to know their trust drivers and which trust levers to pull, as it’s only after that point that an effective trust building strategy can be developed.”

Image credit: ©stock.adobe.com/au/shock

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