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The Effect of Bleach* Festival Facebook IT Features on Trust Phillip Aouad A thesis submitted as partial fulfilment of the requirements of the degree of Bachelor of Information Technology with Honours at Southern Cross University November 2013

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The Effect of Bleach* Festival Facebook IT Features on Trust

Phillip Aouad

A thesis submitted as partial fulfilment of the requirements of the degree of

Bachelor of Information Technology with Honours at

Southern Cross University

November 2013

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Statement of Originality

I certify that the work presented in this thesis is, to the best of my knowledge and

belief, original, except as acknowledged in the text, and that the material has not been

submitted, either in whole or in part, for any other degree at this or any other university.

I acknowledge that I have read and understood the University’s rules, requirements,

procedures and policy relating to my degree and to my thesis. I certify that I have

complied with the rules, requirements, procedures and policy of the University (as they

may be from time to time).

Print Name: Phillip Aouad

Signature:

Date: 1 November 2013

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Abstract

The growing need for organisations to use social media has been met with some

hostility by users. Trust is a primary factor in individuals’ decisions to accept and

engage in online social media activity with organisations. One industry that can attest

to this is tourism (Milano, Baggio & Piattelli 2011; Parra-López et al. 2011; Xiang &

Gretzel 2010).

Focusing on the Bleach* Festival - an annual event spanning Gold Coast beaches that

celebrates and promotes beach culture, this study examines how particular information

technology (IT) features found on the festival’s Facebook page can affect user trust.

Specifically, upon completing an extensive literature review, a research model (Chapter

3) was designed to clearly illustrate the hypothesised relationships between five IT

features (‘Usability’, ‘Transparency’, ‘Quality Assured Content’ (QAC), ‘Privacy’ and

‘Security’) and three trusting beliefs (‘Ability’, ‘Integrity’ and ‘Benevolence’).

Inviting approximately 15,000 students from Southern Cross University to participate

in the study, 110 responses were collected from the online survey. Analysing the data

using various parametric and non-parametric tests revealed that the multiple items

reflecting different facets of the five IT features and three trusting beliefs could not be

regarded as valid and reliable measures. However, when combining certain IT features

into post-hoc factors, further analysis revealed that they could affect user trust levels, as

measured by a single factor.

Further, the study revealed that some of the five original IT features (proposed by

Benlian and Hess [2011]) could be combined, with one of the factors being an

intervening variable.

By redefining the factors, this research has shown that the new IT features all have the

potential to increase user trust. This knowledge subsequently enables management of

the Bleach* Festival to tailor various IT features in order to increase trust among online

users.

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Acknowledgments

A number of people played a crucial role in aiding me in the completion of this thesis.

First and foremost, my supervisors, Dr William Smart and Dr Patrick Gillett - without

your patience, guidance, knowledge and effort, I would still be floundering helplessly. I

cannot thank you enough for all that you have helped me achieve this year. I can only

hope that this is the stepping stone I need to take on a PhD.

Second, Dr Matthew Xerri and Mr George Coles, thank you sincerely for all your help

with the statistics component of this thesis. Your knowledge and understanding of

statistics is brilliant.

Third, I would like to thank Dr Scott Niblock (Honours Coordinator) and Ms Maree

Savins (Honours Student Support Officer) for your tireless and fantastic work on the

Honours program. You have helped shape the Honours experience in a way that is most

positive - and, dare I say, enjoyable.

Fourth, I would like to thank my family, who listened patiently as I rambled on about

nonsensical issues and concerns, and allowed me to vent to them with non-judgement

and care. There are too many to name, but I sincerely love and thank you.

Fifth, thank you to the Southern Cross Business School and Southern Cross University

community for your input, support, encouragement and participation. Many individuals

played an important role in helping me understand the research process. Without you,

this would not be possible.

Sixth, thank you to the Research Centre for Tourism, Leisure and Work for awarding

me an Honours scholarship - your contribution helped me immensely this year.

Seventh, thank you to Dr. Lisa Lines and the team at Elite Editing for all their

assistance. I truly appreciate the editing (Standards D and E of the Australian

Standards for Editing Practice) and advice you provided me.

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Lastly, many thanks to all (mentioned and unmentioned) who in some shape or form

helped me along this Honours year journey. There were bumps in the road, but, with

your kind support, I managed to keep going.

Warmest regards

Phillip Aouad

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Contents

Statement of Originality .............................................................................................. i

Abstract....................................................................................................................... ii

Acknowledgments ...................................................................................................... iii

Contents ...................................................................................................................... v

List of Tables ........................................................................................................... viii

List of Figures ............................................................................................................ ix

List of Terms and Abbreviations ............................................................................... x

Chapter 1: Introduction ............................................................................................. 1

1.1 Background ........................................................................................................ 1

1.1.1 Bleach* Festival ........................................................................................... 2

1.2 Research Question and Hypotheses ..................................................................... 2

1.3 Research Justification ......................................................................................... 4

1.4 Methodology and Design .................................................................................... 5

1.5 Limitations and Key Assumptions ....................................................................... 5

1.6 Thesis Outline ..................................................................................................... 6

1.6.1 Introduction ................................................................................................. 6

1.6.2 Literature Review ......................................................................................... 6

1.6.3 Theoretical Framework ................................................................................ 6

1.6.4 Methodologies ............................................................................................. 6

1.6.5 Data Analysis ............................................................................................... 7

1.6.6 Conclusion ................................................................................................... 7

Chapter 2: Literature Review .................................................................................... 8

2.1 Introduction ........................................................................................................ 8

2.2 Description of Key Terms ................................................................................... 8

2.2.1 What is Social Media? ................................................................................. 8

2.2.1.1 Growth and Development of Social Media ............................................. 9

2.2.1.2 Community Events and Social Media ..................................................... 9

2.2.2 What is Trust? ............................................................................................ 10

2.2.2.1 Key Points of Trust .............................................................................. 10

2.3 Studies into Social Media and Trust Development ............................................ 11

2.3.1 Studies into Online Trust ............................................................................ 11

2.3.1.1 Benlian and Hess (2011) ..................................................................... 11

2.3.1.2 Brengman and Karimov (2012) ........................................................... 12

2.4 Research Gaps .................................................................................................. 13

2.4.1 Research Objectives and Questions ............................................................ 14

2.5 Conclusion ........................................................................................................ 14

Chapter 3: Theoretical Framework and Research Model ...................................... 15

3.1 Introduction ...................................................................................................... 15

3.2 Theory Development ........................................................................................ 16

3.3 Alternative Theories of Cultivating Trust .......................................................... 17

3.3.1 Social Network Theory .............................................................................. 17

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3.3.2 Social Capital Theory ................................................................................. 17

3.3.3 Web Trust Model ....................................................................................... 18

3.3.4 Cue Signalling Theories: Derivatives of Signalling Theory ........................ 19

3.3.4.1 Integration of Cue Signalling Theory with Signalling Theory .............. 19

3.4 How Signals Can Affect User Perceptions ........................................................ 20

3.5 Signalling Theory and Social Media Research .................................................. 21

3.6 Research Model ................................................................................................ 22

3.7 Research Question and Hypothesis.................................................................... 23

3.8 Conclusion ........................................................................................................ 24

Chapter 4: Methodology .......................................................................................... 25

4.1 Introduction ...................................................................................................... 25

4.2 Key Variables ................................................................................................... 25

4.3 Research Design ............................................................................................... 25

4.3.1 A Quantitative Approach ............................................................................ 25

4.3.2 Survey Method ........................................................................................... 26

4.3.3 Questionnaire Design ................................................................................. 27

4.3.3.1 Demographic and Experience Measures .............................................. 28

4.3.3.2 IT Features .......................................................................................... 28

4.3.3.3 Trusting Beliefs ................................................................................... 29

4.4 Target Population and Sampling Frame ............................................................. 31

4.4.1 Sampling Frame ......................................................................................... 31

4.4.2 Sample Size Technique .............................................................................. 32

4.4.3 Sampling Procedure ................................................................................... 32

4.5 Data Collection ................................................................................................. 33

4.5.1 Pilot Study ................................................................................................. 33

4.5.2 Data Collection .......................................................................................... 33

4.6 Statistical Analysis ............................................................................................ 34

4.6.1 Descriptive Statistics .................................................................................. 34

4.6.1.1 Mann-Whitney U Test .......................................................................... 34

4.6.1.2 Kruskal-Wallis Test ............................................................................. 34

4.6.2 Multivariate ............................................................................................... 35

4.6.2.1 Correlations ........................................................................................ 35

4.6.2.2 Exploratory Factor Analysis ................................................................ 35

4.6.2.3 Partial Least Squares (PLS) ................................................................ 35

4.7 Conclusion ........................................................................................................ 36

Chapter 5: Data Analysis ......................................................................................... 37

5.1 Introduction ...................................................................................................... 37

5.2 Data Filtering .................................................................................................... 37

5.3 Response Rate .................................................................................................. 37

5.4 Descriptive Statistics ......................................................................................... 38

5.4.1 Demographic Measures .............................................................................. 38

5.4.2 Experience Measures ................................................................................. 40

5.4.3 Facebook Participation Measures ............................................................... 42

5.5 Non-Parametric Tests ........................................................................................ 43

5.5.1 Mann-Whitney U Test for Gender .............................................................. 43

5.5.2 Kruskal-Wallis Tests for Education, Participation and Computer Skills ...... 44

5.5.2.1 Education ............................................................................................ 44

5.5.2.2 Computer Skills ................................................................................... 45

5.5.2.3 Facebook Participation ....................................................................... 46

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5.6 Exploratory Factor Analysis (EFA) ................................................................... 47

5.6.1 Assumptions .............................................................................................. 47

5.6.1.1 Assumption of Normality ..................................................................... 47

5.6.1.2 Assumption of Linearity ....................................................................... 47

5.6.1.3 Assumption of Sample Size .................................................................. 48

5.6.1.4 Assumption of Factorability ................................................................. 48

5.6.2 Findings of the EFA ................................................................................... 49

5.7 Parametric Test ................................................................................................. 51

5.7.1 Parametric Test Assumptions ..................................................................... 51

5.7.1.1 Assumption 1: Level of Measurement .................................................. 51

5.7.1.2 Assumption 2: Random Sampling ........................................................ 51

5.7.1.3 Assumption 3: Independence of Observations ...................................... 51

5.7.1.4 Assumption 4: Normal Distribution ..................................................... 52

5.7.1.5 Assumption 5: Homogeneity of Variance ............................................. 53

5.7.2 ANOVA ..................................................................................................... 54

5.7.2.1 One-way ANOVA with Post-hoc Tests for Generational Cohorts ......... 54

5.8 Regression Analysis .......................................................................................... 56

5.8.1 Correlations ............................................................................................... 56

5.8.2 Partial Least Squares (PLS) ........................................................................ 59

5.9 Final Comments ................................................................................................ 67

Chapter 6: Conclusions ............................................................................................ 68

6.1 Introduction ...................................................................................................... 68

6.2 Conclusions Related to the Research Hypotheses .............................................. 68

6.3 Conclusions Related to the Research Problem ................................................... 70

6.4 Conclusions Related to the Revised Research Model ........................................ 71

6.5 Comparison of Research Models ....................................................................... 71

6.6 Implications for Theory and Practice ................................................................. 75

6.7 Limitations of the Study and Future Research Recommendations ...................... 76

6.8 Final Comments ................................................................................................ 77

References ................................................................................................................. 79

Appendices ................................................................................................................ 89

Appendix A Survey Questions ................................................................................. 90

Appendix B Participant Invitation Email ................................................................ 98

Appendix C Participant Invitation Email............................................................... 100

Appendix D Cochran’s Equation (Working Out) ................................................. 102

Appendix E Scatter Plot Matrices .......................................................................... 105

Appendix F Exploratory Factor Analysis ............................................................... 109

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List of Tables

Table 5.1: Key Descriptive Statistics Related to Respondents’ Experience.................. 42

Table 5.2: Significant Values from Mann-Whitney Test for Gender ............................ 43

Table 5.4: Significant Values for Kruskal-Wallis Test for Education .......................... 44

Table 5.5: Mean Ranks for Level of Education ........................................................... 45

Table 5.6: Mean Ranks for Computer Skills ............................................................... 46

Table 5.7: Kruskal-Wallis Test for Facebook Participation ......................................... 46

Table 5.8: KMO and Bartlett’s Test of Sampling Adequacy ....................................... 48

Table 5.9: EFA Loadings ............................................................................................ 49

Table 5.10: Shapiro-Wilk Test of Normality ............................................................... 52

Table 5.11: Significance for Leven’s Test ................................................................... 53

Table 5.12: Test of Homogeneity ................................................................................ 53

Table 5.13: One-Way ANOVA for Generational Cohorts ........................................... 55

Table 5.14: Post-hoc Tukey’s HSD for Generational Cohorts ..................................... 56

Table 5.15: Pearson’s Correlation of Factors .............................................................. 57

Table 5.16: Spearman’s Correlation of Factors ........................................................... 58

Table 5.17: PLS Output including GOF ...................................................................... 64

Table 5.18: PLS Output Statistics including Parameter Estimates ............................... 65

Table 5.19: PLS Factor Loadings ................................................................................ 66

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List of Figures

Figure 3.1: Web Trust Model Concept Map ................................................................ 18

Figure 3.2: Proposed Research Model ......................................................................... 22

Figure 4.1: Partial Screenshot of Survey Website Questions ....................................... 27

Figure 5.1: Gender Distribution .................................................................................. 39

Figure 5.2: Level of Education Distribution ................................................................ 39

Figure 5.3: Age Distribution ....................................................................................... 40

Figure 5.4: Computer Skills Distribution .................................................................... 41

Figure 5.5: Social Media Experience Distribution ....................................................... 41

Figure 5.6: Facebook Participation Distribution .......................................................... 42

Figure 5.7: Facebook Posting Distribution .................................................................. 42

Figure 5.8: Q-Q Plot of Age, Showing Normality ....................................................... 52

Figure 5.9: Boxplot of Computer Skill ........................................................................ 53

Figure 5.10: Q-Q Plot for Level of Education ............................................................. 53

Figure 5.11: PLS Algorithm Model ............................................................................ 62

Figure 5.12: Bootstrap Model ..................................................................................... 63

Figure 6.1: Proposed Research Model Based on Findings of this Study ...................... 70

Figure 6.2: Research Model Comparison .................................................................... 73

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List of Terms and Abbreviations

Asynchronous communication: Indirect or delayed communication methods, such as

email.

Back-end: Unobservable characteristics - what is not seen by the user of the website,

but is seen by the developer of the website. Generally, the back-end of a website

enables control of the entire site and influences the front-end content and/or design.

Commodities: Goods, services or skills of value.

Content-rating system: Feedback mechanisms that offer users the ability to assess and

indicate the usefulness or relevance of website content, such as the Facebook ‘like’

feature.

Cues (see Signals): Non-verbal communication.

Data privacy assurance: Indications to users of a website that the data collected from

the website will be handled safely and securely and will not be shared with third

parties. For example, privacy statements are a written statement from the website or

business indicating that information provided by the user will be handled with care.

Sometimes privacy assurances can be provided on websites by third-party vendors. For

example, a piece of software that helps protect data may be developed and used by a

third-party vendor.

Experience properties: Attributes about products that are only assessable by the user

at the time of consumption. Examples of experience properties include the durability of

a particular telephone case cover or the reliability of a cellular device.

Feedback mechanisms: Enable participants of online social media groups to rate the

quality of content displayed. Feedback mechanisms can also allow users to report

content that may be offensive. They are also known as content-rating systems.

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Front-end: Observable characteristics - what is seen by a user when they log on to a

website.

Information asymmetry: When the buyer has different information to the seller.

Interpersonal trust: Benlian and Hess (2011) state that interpersonal trust is the

willingness of a person to trust another party, despite the probability of negative

outcomes. It is: ‘an expectancy held by an individual or a group that the word, promise,

verbal, or written statement of another individual or group can be relied on’ (Rotter

1971, p. 444).

Investments: Producing and circulating commodities that are expected to generate

return/income into the marketplace.

Relational level: Individuals accessing and using resources within social networks to

gain capital in involved actions, such as finding a better job.

Signals: A method of communicating information through non-verbal means.

Social capital: ‘Investment in social relations with expected returns’ (Lin 1999).

Social media administrators: Also known as ‘online community operators’, they are

responsible for maintaining a social media website by uploading new content,

moderating interactions and responding on behalf of the business.

Social presence: A feeling of closeness or bonding with an online group or

community, allowing participants to develop a closer connection to the group.

Societal group level: Groups developing and maintaining more or less social capital as

a unit.

Surplus: Excess income generated by an investment.

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Synchronous communication: Direct or instant communication methods, such as

instant messaging or audio/video.

System trust: The trust the user has in the online community and the social media

administrator. System trust is based on security and safeguards within the system to

make users feel that their participation is safe. Benlian and Hess (2011) indicate that

system trust is the observed ‘Benevolence’, ‘Ability’ and ‘Integrity’ of the business.

Trust propensity: A person’s ability to trust.

Web seals: Generally a graphic on a website that indicates that the website or parts of

the website that deal with sensitive data are secure and safe for use.

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Chapter 1: Introduction

1.1 Background

Traditional marketing involves face-to-face interactions and personalised service with

the consumer. However, with the arrival of the social media phenomena, the tools and

strategies used to communicate with customers have changed significantly (Mangold &

Faulds 2009). Blackshaw and Nazzaro (2004, p. 4) state that social media ‘describes a

variety of new sources of online information that are created, initiated, circulated and

used by consumers intent on educating each other about products, brands, services,

personalities and issues’. This suggests that social media is a powerful means of

delivering information, especially among users.

The role of social media in today’s society is rapidly increasing, with various

businesses taking advantage of this growth to expand business, disseminate information

quickly, have customers interact with the business and have customers interact with

each other. However, with the dependency on technology increasing, so is the

scepticism of consumers towards social media. Lack of trust on the consumer’s part is

understandable because there is a large perceived risk when interacting via a public

online environment.

Having a business understand and implement measures to reduce users’ perceived risks

of engaging in online social media can aid in accumulating consumer trust and,

ultimately, loyalty to the business. Nonetheless, the visual appeal of a social media

outlet is not always enough to ‘win over’ many users. There is a requirement that the

business recognises users’ concerns and needs in the social media context.

While social media has many benefits, it should also be recognised that not all

consumers are at the same level of technical experience, and thus some may not be

comfortable with the amount of technology being forced upon them. One of the main

issues plaguing users of social media is trust. The removal of face-to-face contact can

leave users feeling unsure about a business and their service. Levels of trust are

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affected even more if the business is small and underrepresented in the market place.

Deliberate intervention is therefore required on behalf of such organisations to foster

consumer trust.

1.1.1 Bleach* Festival

Taking the form of a contemporary arts celebration, the Bleach* Festival incorporates

the beach heritage of the Southern Gold Coast. Surf and beach culture are celebrated

via myriad activities, including indoor and outdoor pop-up music and arts events

(Bleach* Festival 2012). Including well-known artists from around Australia, this 13-

day celebration of music, photography, arts, theatre, film, ideas and lifestyle events

showcases the varying artistic pursuits that beach culture has inspired (Bleach* Festival

2012).

From its successful inauguration in 2011, the Bleach* Festival has continued to grow

and help build the profile of the southern Gold Coast and its related surf culture

(Bleach* Festival 2012). In order to maintain its growth, the Bleach* Festival - like

other regional festivals - relies on social media for promotion and effective marketing.

Unlike other forms of advertising, social media (specifically the use of Facebook)

allows users to interact and share experiences, information and thoughts on the

business.

1.2 Research Question and Hypotheses

This research focused on the ability of community festivals (specifically the Bleach*

Festival) to engender trust among users of social media, as well as investigating aspects

of signalling theory. This was undertaken in an effort to develop the trust of the

Facebook users of the Bleach* Festival Facebook page. The research question was

subsequently proposed as:

What is the relationship between key information technology (IT)

features of the Bleach* Festival Facebook page and the trusting beliefs of

users?

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The research conducted in this study concentrated on aspects of social media sites (IT

features) that have been identified to affect user trust. Expanding on a study by Benlian

and Hess (2011), this study investigated whether particular aspects of trust, known as

‘trusting beliefs’ (Brengman & Karimov 2012; McKnight, Choudhury & Kacmar

2002), are affected by the proposed IT features. The formulations of the following

hypotheses were derived from the above research question.

H1a: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Benevolence’.

H1b: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Integrity’.

H1c: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Ability’.

H2a: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Benevolence’.

H2b: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Integrity’.

H2c: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Ability’.

H3a: There is a positive relationship between the ‘Quality Assured Content’ (QAC) of

the Facebook site and trust ‘Benevolence’.

H3b: There is a positive relationship between the ‘QAC’ of the Facebook site and trust

‘Integrity’.

H3c: There is a positive relationship between the ‘QAC’ of the Facebook site and trust

‘Ability’.

H4a: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Benevolence’.

H4b: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Integrity’.

H4c: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Ability’.

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H5a: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Benevolence’.

H5b: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Integrity’.

H5c: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Ability’.

To investigate these hypotheses an online survey method was employed. The findings

of the study indicate that ‘Trust’ could not be broken down into the three trusting

beliefs and that a number of the five IT features should be combined. Despite this post

hoc amendment to the research model, the findings of this study make a significant

contribution to the body of knowledge regarding social media trust and community

events.. Having a clear indication of what users regard as trust engendering enables the

enhancement of existing relationships and the development of new ones.

1.3 Research Justification

Previous studies that have considered organisations and social media have focused on a

number of other issues, including specific social media tools, such as Twitter (Bulearca

& Bulearca 2010), or varying theories, such as social capital theory or social network

theory, in relation to some aspect of social media or business (for example, Kietzmann

et al. 2011; Michaelidou, Siamagka & Christodoulides 2011; Partanen et al. 2008; Peng

& Mu 2011; Spence & Schmidpeter 2003; Westerlund & Svahn 2008; Zhou, Wu &

Luo 2007).

A recent study conducted by Brengman and Karimov (2012) investigated the effects of

web communities on consumer initial trust in relation to business-to-consumer

electronic commerce (e-commerce) websites. Brengman and Karimov (2012) based

their study on cue signalling theories and used a hypothetical scenario (an imitation

website that users employed for online shopping to purchase a birthday item for a

friend) to gauge users’ perceptions of trust. While this was an ethical and cost effective

way to approach the situation, it may be seen as a limitation of the study. Displayed

websites may have led to bias as the researcher specified designs may have prompted

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participants to perform certain online actions, affecting the outcome of the study.

Nonetheless, using a factious website did leave room for further investigation and

varying applications.

The study conducted had multiple variables changed, this included applying signalling

theories to a social media setting, removing the requirement for a user to ‘purchase’ an

item (which allows the users’ attention to focus on the website and business, rather than

on a particular item of purchase) and removing the conjectural scenario of viewing a

site that does not exist on the web. As an alternative, in this study, the users were

presented with a real Facebook page and were able to focus on the core issue of trust. It

is hoped that this approach eliminated many unnecessary variables and allowed for

more accurate data collection.

1.4 Methodology and Design

Employing a quantitative research method allowed for empirical analysis of the stated

hypotheses. The quantitative research method called on the Southern Cross University

(SCU) student population to answer various questions via an online survey. The survey

asked respondents multiple questions relating to their perceptions of trust and IT

features found specifically on the Bleach* Festival Facebook. Additional questions

were presented to gain an understanding of the demographics of the respondents.

1.5 Limitations and Key Assumptions

Several possible limitations were noted in the study; however, these limitations were

not believed to affect the findings, outcomes or quality of the study. The noted

limitations included:

• Only the tourism industry was investigated.

• Only Facebook was used and the study did not account for other social media

applications.

• The sample was made up of only students.

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1.6 Thesis Outline

1.6.1 Introduction

Chapter 1 introduces the study and defines the study’s breadth. It also briefly discusses

the study’s justification and research problems, as well as why the study is needed. In

this chapter, the methodology and research design are outlined, while the findings of

the study are briefly mentioned to enable the user a clear view of the study and its

relevance.

1.6.2 Literature Review

Chapter 2 reviews previous literature and studies conducted in the area of social media,

trust and community events. It discusses social media and trust, and presents an

overview of common problems faced by organisations when using social media. Within

Chapter 2, the research question is introduced, which forms the basis of the study and

leads up to the development of the hypotheses.

1.6.3 Theoretical Framework

Chapter 3 discusses the signalling theory framework, which is employed in this study,

as well as other theories that have been used in related research.

1.6.4 Methodologies

Chapter 4 outlines the measures used to test the formulated research hypotheses and the

reasoning behind this decision. In addition, the target population, sampling technique,

survey questionnaire design, data handling procedures and control measures for data

validity are also explained.

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1.6.5 Data Analysis

Chapter 5 presents the analysis of collected data and includes use of both descriptive

and inferential statistics. Descriptive statistics are divided into three categories:

• demographics

• experience

• Facebook participation.

Inferential statistical techniques used in the analysis of data included correlations,

exploratory factor analysis (EFA) and partial least squares (PLS). Core assumptions

associated with these techniques are presented.

1.6.6 Conclusion

Chapter 6 summarises and reaffirms the accomplishments of the study and revisits the

research problem, research question and hypotheses from earlier chapters. Initially,

conclusions that are of a general nature are acknowledged, followed by specific

conclusions drawn about trust between consumers and community events. Finally,

limitations of the study, suggestions for future studies and concluding comments are

discussed.

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Chapter 2: Literature Review

2.1 Introduction

The development of social media has provided greater opportunity for individuals and

groups to communicate with each another, regardless of their location. Such pathways

have allowed users of social media access to a vast web of knowledge and experiences.

Additionally, social media has contributed to substantial growth in e-commerce

(Dwyer, Hiltz & Passerini 2007; Harris 2011; Oxwall & Zander 2012)

Numerous studies into e-commerce over the past 10 years have identified the

importance of developing trust between users and websites (for example, Chen &

Barnes 2007; Coles 2010; Egger 2003; Gefen & Straub 2003, 2004; Hu et al. 2010).

However, it may be argued that the investigation of trust between users and social

media enterprises is equally, if not more, important. This is because social media users

are not required to partake in a monetary transaction. This situation has important

implications for non-profit organisations, such as community festivals and events,

because they greatly depend on social media as a means of publicity (Arcodia &

Whitford 2007; Paris, Lee & Seery 2010). Thus, there is a need to investigate how

community festivals can best use social media by developing trust with users.

2.2 Description of Key Terms

In order to undertake the proposed investigation, it is important to first establish a

precise understanding of the terms ‘social media’ and ‘trust’. This will be achieved by

considering both terms separately, before reflecting on existing relational studies

between the two areas.

2.2.1 What is Social Media?

Drawing on definitions from the Oxford Online Dictionary (2013) and Kaplan and

Haenlein (2010), ‘social media’ can be described as ‘websites or applications that allow

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participants with similar interests to connect and share content with one another’.

Social media allows participants to expand networks and form relationships with other

like-minded individuals.

2.2.1.1 Growth and Development of Social Media

Lacho and Marinello (2010) suggest that social media was initially developed as an

alternative means of communication for school students. Since then, social media has

grown exponentially and is now used for a wide variety of personal online activities,

such as:

• checking weather reports

• checking local and international news

• sharing ideas

• joining support groups

• learning new skills or techniques (such as cooking or gardening)

• keeping in contact with family and friends around the world

• monitoring community events (see Cole & McCullough 2012; Pollet, Roberts &

Dunbar 2011; Thurston 2013).

Similarly, organisations have also taken to using social media for a variety of reasons,

including identifying and investigating competition, advertising, assessing market

trends, engaging with customers and market research (see Cole & McCullough 2012;

Giamanco & Gregoire 2012; Gray 2013; Pollet, Roberts & Dunbar 2011; Thurston

2013). Social media is cost effective and time efficient, making it a strong promotional

tool that, if used correctly, can develop trust between businesses and consumers.

2.2.1.2 Community Events and Social Media

Organisations rely on the far reach of social media to publicise, promote and market

various events (Becker, Naaman & Gravano 2009; Hudson & Hudson 2013; Karic &

Rinman 2011; Lee, Xiong & Hu 2012; Lovejoy & Saxton 2012),. Hudson and Hudson

(2013) recently suggested that consumer decision processes have changed the way

users interact with organisations because consumers evaluate and research the

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organisation before deciding whether to proceed with interactions. Further, after users

purchase from a particular organisation, they enter an open-ended relationship with the

organisation and share their experiences via social media (Hudson & Hudson

2013).This may be similar with community events. By having users interact with the

organisation, the open-ended relationship extends to sharing information and

experiences with the organisation via social media, thus providing feedback and

publicity via social media so that others may see these interactions.

2.2.2 What is Trust?

Defining trust has posed great difficulty for researchers. The complexity of definitions

arises because trust incorporates a variety of facets that are unique to individuals and

context. McKnight, Choudhury and Kacmar (2002) indicate that there is little

agreement on the dimensions of trust and how they interrelate. Therefore, trust is a very

subjective and situational concept.

In the context of this study, where trust in the social media enterprise is an important

outcome, it is vital to establish a general meaning of trust. One such example is

provided by Bhattacharya, Devinney and Pillutla (1998, p. 462), who define trust as “an

expectancy of positive (or nonnegative) outcomes that one can receive based on the

expected action of another party in an interaction characterized by uncertainty”.

2.2.2.1 Key Points of Trust

In terms of the various components of trust, researchers have largely focused on a

particular collection of qualities known as ‘trusting beliefs’ (see Biemans 1992;

Dimoka 2010; Fulmer & Gelfand 2012; McKnight, Choudhury & Kacmar 2002;

Schoorman, Mayer & Davis 2007). Trusting beliefs involve the perceptions of the

‘truster’ (person doing the trusting) towards the ‘trustee’ (person who is being trusted).

The three dimensions are:

• ‘Benevolence’: the trustee proves to the truster that they are caring and focused

on the truster’s needs

• ‘Competence’ (‘Ability’): the ability of the trustee to do what the truster needs

• ‘Integrity’: the trustee’s level of honesty and promise keeping.

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2.3 Studies into Social Media and Trust Development

Social media users often lack product or business expertise and thus rely on other users

or organisations for information. Options such as blogs and user discussion provide

support for users and help develop trust within the user towards the business

(Brengman & Karimov 2012).

2.3.1 Studies into Online Trust

2.3.1.1 Benlian and Hess (2011)

Benlian and Hess (2011) argue that trust among online members is an important factor

that influences participation in online communities. Trust among users is said to reduce

a person’s fear of being publically criticised in an online community, or even being

expelled from the group. Similarly, trust among members offers security, protection,

mutual respect and a sense of belonging. In addition, it promotes open participation and

interaction. This view is supported by Ridings, Gefen and Arinze (2002), who found

that trust in fellow members of an online community has a significant effect on user

participation. That is, trust increases the willingness to exchange information.

Benlian and Hess (2011) aimed to explain how user perceptions of IT features in an

online community affect views of trust and participation behaviour. They endeavoured

to achieve this objective by measuring system trust and interpersonal trust

perceptions, and analysing the level of user participation. Moreover, they presented five

prominent IT-enhancing features that are considered the most important for influencing

trust. The IT features tested included ‘Usability’, ‘Transparency’, ‘Quality Assured

Content’ (QAC), ‘Security’ and ‘Privacy’.

‘Usability’

‘Usability’ can be defined as “the extent to which a product can be used by specified

users to achieve specified goals with effectiveness, efficiency, and satisfaction in a

specified context of use” (Karat 1997, p. 34). Without “‘Usability’” (the ability to

communicate), users are unable to interact in the online community and thus are unable

to develop interpersonal trust among each other (Benlian & Hess 2011).

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‘Transparency’

‘Transparency’ is the selective exchange of sensitive information between entities,

helping to reduce the perception of risk and uncertainty within a relationship (Benlian

& Hess 2011). ‘Transparency’ is important for social media administrators because it

creates a sense of social presence and helps users interact with confidence.

‘Transparency’ may be signalled by various pieces of information on a website, such as

the business or group name, address, goals and sponsor information.

‘Quality Assured Content’ (QAC)

Content quality is relied on heavily because there is little or no direct contact among

users and social media administrators. Often correlated with information credibility,

‘QAC’ aims to identify and enhance website quality through feedback mechanisms

(Benlian & Hess 2011).

‘Security’

‘Security’ refers to the measures taken to reduce user fears of misuse or abuse of

important user data (Benlian & Hess 2011). Kalakota and Whinston (1996, p. 177)

define a security threat as a “circumstance, condition, or event with the potential to

cause economic hardship to data or network resources in the form of destruction,

disclosure, modification of data, denial of service, and/or fraud, waste, and abuse”. In

short, a security threat is anything that will compromise data or data integrity.

‘Privacy’

‘Privacy’ refers to the way user data are used, maintained and shared. Unlike security,

which prevents unauthorised access to data, privacy deals with the way the user

consents for their data to be used (Benlian & Hess 2011).

2.3.1.2 Brengman and Karimov (2012)

Brengman and Karimov (2012) conducted research into businesses that used social

media, specifically Facebook and blogs, compared to organisations that used no social

media. The aim of the research was to test the effectiveness of particular social media

outlets in signalling the ‘trustworthiness’ of an unfamiliar e-vendor, and the ability to

enhance users’ purchase intentions.

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The study considered not only the three most common trusting beliefs (‘Benevolence’,

‘Integrity’ and ‘Ability’) but also trust propensity. Brengman and Karimov (2012)

found that ‘Ability’ could not be signalled through social media. However,

‘Benevolence’ and ‘Integrity’ were found to have a substantial effect on users’

purchase intentions. It was concluded in the study that ‘Integrity’ could be damaged by

using blogs without having a concurrent social media application; such as Facebook or

Twitter. However, if organisations did want to present a corporate image, and

subsequently increase ‘Benevolence’, it should be done through the dual use of a social

media application and a blog (Brengman & Karimov 2012).

2.4 Research Gaps

Brengman and Karimov (2012) looked at trust in businesses that use social media

blogs, compared to businesses that use no form of social media. They did this by

comparing groups of people exposed to a hypothetical e-commerce website. Users were

instructed to purchase a gift for a friend. Participants were then required to assess the

website and answer various questions regarding trusting beliefs.

While the idea of a fictitious website may be useful, it is still open to bias or - in the

case of this study - enhancement to meet the requirements being assessed. Specifically,

the study focused on an e-commerce environment, as opposed to a social media one.

This led to various website features being included that are not present on a social

media site, such as shopping carts, transaction facilities and checkout pages.

The assumption that all university students are experienced online shoppers was made

by Brengman and Karimov (2012). This may not always be the case and may have

skewed the result, as it could be argued that user perceptions of the site may be

affected. Likewise, inexperienced online shoppers may feel ‘threatened’ by the online

experience.

Benlian and Hess (2011) generalised their study and tested trust as a composite of

system trust and interpersonal trust, but did not focus heavily on the components of

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each. Additionally, the study focused on consumer-to-consumer trust, rather than

consumer-to-business trust.

2.4.1 Research Objectives and Questions

To address the aforementioned gaps, this research study combined elements of both

studies and aimed to focus on business-to-consumer trusting belief engenderment. The

purpose of this overall study was to answer a core research question:

What is the relationship between key information technology (IT)

features of the Bleach* Festival Facebook page and the trusting beliefs of

users?

2.5 Conclusion

The need to identify answers to the proposed research questions is becoming

increasingly important. With small to medium sized businesses succumbing to forced

closure due to lack of revenue, the concept of trust and social media is more prominent

in these economic times than perhaps during the past 10 years. Allowing businesses to

tap into the power of social media may lead to growth in the small business and the

community event sector, which can benefit a country’s economy as a whole.

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Chapter 3: Theoretical Framework and Research Model

3.1 Introduction

Humans rely on non-verbal cues, not only from other individuals but also from the

world with which they interact. By placing heavy reliance on the non-verbal

characteristics of communication, people are able to draw richer meanings from

scenarios in which they have a role. The importance of non-verbal signals can be seen

in business and marketing literature, which highlights the importance of signals for a

number of situations in an organisational setting, such as the recruiting and hiring

process, product quality, brand image and the review of staff (Banker & Iny 2008;

Dimoka, Hong & Pavlou 2012; Spence 1973; Tsao et al. 2011). Online social media

and the need to engender trust in users is no exception to this rule. The following

chapter examines signalling theory and its relevance to social media and shaping users’

trust perceptions.

Signalling theory can be easily applied to social media marketing because the core

principles are essentially very similar when compared to economics. For example, the

business is still trying to relate a message to the user; however, the outcome intended

may be different. Contrastingly, with an e-commerce approach, the business is looking

to conduct a monetary transaction in situ, while the user is navigating the site.

However, when used in social media, the message of trust is being conveyed in order to

lead to monetary transactions occurring at a later time.

Signals can be very powerful forms of communication and can convey deeper

meanings than words alone. If a particular product or service attracts the user, this is

based on the signals given off, not necessarily on what is said to the user to spark that

interest.

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3.2 Theory Development

Signalling theory arose from the study of information economics, particularly due to

information asymmetry. Information asymmetry occurs when buyers and sellers have

different information about a business interaction. Signalling theory explores how this

information is signalled or communicated to the other party via non-verbal methods.

For example, through first-hand experience a seller might possess greater knowledge of

the product properties (Benlian & Hess 2011; Boulding & Kirmani 1993; Schlosser,

White & Lloyd 2006).

Information asymmetry commonly leads to people making inferences about an

organisation, as well as about the goods or services that the business offers. These

inferences are largely based on consumers’ ability to differentiate between expensive

and inexpensive marketing methods, such as the quality of an advertisement (Schlosser,

White & Lloyd 2006).

Schlosser, White and Lloyd (2006) argue that consumers also have the ability to

distinguish between a company’s marketing efforts, such as the perceived time taken by

a business to promote success through a website. Moreover, if an organisation appears

to have invested well - such as time, money and effort - into their front-end website

design, consumers are more likely to trust the organisation and believe that the website

is capable of successfully and securely handling back-end tasks. These back-end tasks

can include online transactions, personal information and other sensitive data

(Schlosser, White & Lloyd 2006).This argument by Schlosser, White and Lloyd (2006)

about percieved effort may be somewhat limited as not all consumers are equally aware

of ‘how much effort’ is required to create successful, visually appealing websites.

When discussing visual appeal, Schlosser, White and Lloyd (2006) highlight the idea

that users will commonly generalise their trust in an online company based on the

extrinsic signals of the website. One such example is the website design, which aims to

show users that performance will be uniform to its design quality. Nonetheless,

organisations should not neglect the importance of having a properly functioning

website (Schlosser, White & Lloyd 2006). Broken links or pages that do not align with

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the initial quality of the site can send negative signals to the user, thereby damaging the

organisation’s reputation and the user’s perception of trust (Schlosser, White & Lloyd

2006).

3.3 Alternative Theories of Cultivating Trust

After establishing signalling theory, several theories applicable to social media and

business trust growth have been suggested. The four main theories examined in the

following sections are the social network theory, the social capital theory, the web trust

model and the cue signalling theories.

3.3.1 Social Network Theory

The social network theory studies the relationships that exist in a social structure of

individuals or organisations, and the dyads or relationships between them. This allows

entire social entities to be studied, and allows the interactions and outcomes of such

relationships to be assessed (Kadushin 2004).

3.3.2 Social Capital Theory

Lin (1999) suggests that the theory of capital can be traced as far back as Marx 1894

(1867, 1885) and more recently Brewer (1984). To understand social capital, one must

understand the meaning of ‘capital’. In brief, ‘capital’ can be described as an

investment and part of the surplus pocketed by capitalists (Lin 1999). To gain capital,

it is necessary for the processes of production and consumption to cross so that monies

and various commodities can be circulated between the producers and consumers of

goods. The gaining of money or commodities in excess to what is required to sustain

life by an individual classes them as a capitalist (Lin 1999).

Several theories revolve around ‘capital’, such as human capital and cultural capital.

The foundation of all capital theories involves the investment and acquisition of a

surplus, regardless of the type of commodity. For example, social capital theory focuses

on investing, accessing and using the resources embedded in social networks. It draws

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on a mutual recognition and acknowledgment in regard to a specific object or focus

(Lin 1999), such as a particular organisation, thought, movement or well-known public

figure.

Varying perspectives are generally assumed when considering social capital, as it can

be seen from either a societal group level or a relational level. Societal group levels

involve groups that develop and maintain more or less social capital as a unit.

Relational level involves individuals accessing and using resources within social

networks to gain capital in involved actions, such as finding a better job. Nonetheless, a

unified view taken by scholars is that the interactions between members allow for the

maintenance and reproduction of social strengths (Lin 1999).

3.3.3 Web Trust Model

The web trust model presented by McKnight, Choudhury and Kacmar (2002) is another

significant theory dealing with trust. This theory corroborates with Schlosser, White

and Lloyd (2006), who emphasise the notion that website design is a major instrument

for reinforcing consumer trust. This idea focuses on the concept of ‘trusting beliefs’,

which is considered vital in harbouring trust in users. McKnight, Choudhury and

Kacmar (2002) group users’ trust beliefs as follows:

• ‘Competence’: the ability of the vendor to provide what is required by the user.

• ‘Benevolence’: the vendor considers the users’ interests and proves to be

‘caring’ towards the user.

• ‘Integrity’: the vendor remains honest and can follow through with promises.

Figure 3.1: Web Trust Model Concept Map

Source: McKnight, Choudhury and Kacmar (2002)

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For the purpose of this study, only ‘trusting beliefs’ (see Figure 3.1), will be focused

upon. By classifying users’ trust beliefs into three categories, the web trust model aims

to demonstrate that these beliefs are a result of a user’s experience with a website. The

disposition to trust (also known as ‘trust propensity’) indicated in the web trust model

refers to the ability or level of a person to trust, as shaped by the individual’s cultural

influences, personal experiences and personality. This is conveyed by businesses to

users via the social media interface.

3.3.4 Cue Signalling Theories: Derivatives of Signalling Theory

Similar to the economics signalling theory, cue signalling theories - comprised of the

cue utilisation theory (Olson & Jacoby 1972) and the cue consistency theory

(Maheswaran & Chaiken 1991) - have previously been used to investigate websites.

This was undertaken in order to indicate how distinctive website cues can be used to

rouse users’ emotional and cognitive trust perceptions towards a business via social

media (Brengman & Karimov 2012).

3.3.4.1 Integration of Cue Signalling Theory with Signalling Theory

Olson and Jacoby (1972), the developers of the cue utilisation theory, identified two

signal types relating to product quality that are emitted from products to users:

• Intrinsic cues are part of the product (for example, ingredients) and cannot be

altered without manipulating the physical properties of the product itself.

However, intrinsic cues can be experienced with a person’s senses (touch, sight,

taste, hearing or smell) (Brengman & Karimov 2012; Richardson, Dick & Jain

1994).

• Extrinsic cues are attributes related to the product; however, they are not

physically part of it and can be altered. They include price, packaging and brand

name (Brengman & Karimov 2012; Richardson, Dick & Jain 1994).

When online, a user’s perception of a particular product or service is automatically

impaired because they are unable to attain the intrinsic attributes by being in close

proximity to the product (Brengman & Karimov 2012). Hence, users rely on extrinsic

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cues to assess the trustworthiness of the online business (Brengman & Karimov 2012;

Hu et al. 2010). Extrinsic cues can embody effects such as customer opinions, product

reviews, brand images or third-party endorsements (Karimov et al. 2011).

Maheswaran and Chaiken (1991), who developed the cue consistency theory, state that

if multiple sources of information endorse each other, this has a greater effect than a

single contrasting message. This theory also suggests that extrinsic cues are a more

accurate prediction of quality if consistent information is provided, as opposed to

inconsistent information (Brengman & Karimov 2012; Miyazaki, Grewal & Goodstein

2005).

Social media can therefore use an array of extrinsic cues to enhance user perception,

including colours, graphics, layout, navigation aids, animation, music, sounds and

pictures (Brengman & Karimov 2012; Eroglu, Machleit & Davis 2003; Schlosser,

White & Lloyd 2006). Displaying website or business awards on a website can also be

used to increase experiential worth and thus influence users to perceive an ‘increased’

quality in a particular product or service (Brengman & Karimov 2012; Eroglu, Machleit

& Davis 2003).

3.4 How Signals Can Affect User Perceptions

Extrinsic cues or signals do not overtly signify an organisation’s goodwill, ethics,

values, ideals or intentions. Rather, they are an indirect way to show the user that the

business is benevolent and has integrity (Schlosser, White & Lloyd 2006). Ordinarily,

trust is something that is built over time with constant social interaction (Luhmann et

al. 1979). Lack of social interaction with staff is one of the main limiting issues faced

by users when interacting with businesses online (Lowry et al. 2010). Nonetheless, this

does not mean that online interactions cannot foster trust (Brengman & Karimov 2012).

When using the Internet, emotional and cognitive states can be stimulated, as online

social interactions can take on a deeper connection than normal relationships. This

shows that a medium can be used to facilitate a sense of understanding and

involvement among consumers (Kumar & Benbasat 2002). Positive influences can be

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triggered in online users by conveying a human sense of social presence, either directly

or indirectly, via online contact (Gefen & Straub 2003, 2004). Social presence can be

increased by using social cue images in a site, such as human images (Cyr et al. 2009),

video streams (Aljukhadar, Senecal & Ouellette 2010), avatars (Qiu & Benbasat 2009)

and text-to-speech voice technologies (Qiu & Benbasat 2005), thus signalling to the

user that the business is trustworthy.

Integrating synchronous and asynchronous communication methods, enables

organisations to provide users with various social media experiences, such as user

blogs, podcast and instant message into their sites (Badawy 2009). Businesses allow

interpersonal interaction between consumers, which is a valid alternative to the

traditional face-to-face approach (Papacharissi 2009). Through the integration of

communication methods, a high degree of online social presence between users and the

business affects the formation of trust (Gefen & Straub 2004).

3.5 Signalling Theory and Social Media Research

Consumers rely heavily on signals to form expectations or opinions regarding the

quality of a product, especially when the information provided to buyers about the

business is scarce (Benlian & Hess 2011). While this reliance may be considered a

form of trust, interpretations of different signals can vary between individuals, and can

lead to misinterpretations about the product. Benlian and Hess (2011) argue that a

similar signalling problem is faced by online communities. Users draw signals about

the quality of content on social media sites to ascertain the credibility of the site and

ultimately the business.

If users are unable to determine the quality of content or the reputability of the social

media operators - which may be the business - they will generally be hesitant to

participate in discussion or other online activities. Similarly, when the information or

content of a social media site is of poor quality, this can result in the loss of existing

online participants (Benlian & Hess 2011). Both Coles (2010) and Benlian and Hess

(2011) argue that to overcome the adverse implications of having poor quality content,

businesses employing social media should use web seals or data privacy assurances,

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expert input and content-rating systems to increase the quality of information being

distributed.

Benlian and Hess (2011) assert that trust in other members is one of the most important

factors influencing user participation in online communities. Trust among users is said

to reduce an individual’s fears of being publically criticised in an online community or

being expelled from a group. Moreover, trust among members not only offers security,

protection, mutual respect and a sense of belonging, but also promotes participation and

interaction more openly. Similarly, Ridings, Gefen and Arinze (2002) found that trust

in fellow members of an online community has a significant effect on user participation

and willingness to exchange information, thereby increasing the overall success of an

online community.

3.6 Research Model

Figure 3.2: Proposed Research Model

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Drawing on the finding of both Benlian and Hess (2011) and Brengman and Karimov

(2012) a research model was developed. Figure 3.2, above, visually represents the

hypotheses mentioned in Chapter 2 and shows the expected relationships between the

IT-Features (Benlian and Hess [2011]) and Trusting Beliefs (Brengman and Karimov

[2012]). Additionally, the number of items used in the survey instrument to test each

factor is also included in the proposed research model.

3.7 Research Question and Hypothesis

The research objective/problem posed in the literature review chapter led to the

development of the following research question and associated hypotheses:

What is the relationship between key information technology (IT)

features of the Bleach* Festival Facebook page and the trusting beliefs of

users?

H1a: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Benevolence’.

H1b: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Integrity’.

H1c: There is a positive relationship between the ‘Usability’ of the Facebook site and

trust ‘Ability’.

H2a: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Benevolence’.

H2b: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Integrity’.

H2c: There is a positive relationship between the ‘Transparency’ of the Facebook site

and trust ‘Ability’.

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H3a: There is a positive relationship between the ‘QAC’ of the Facebook site and trust

‘Benevolence’.

H3b: There is a positive relationship between the ‘QAC’ of the Facebook site and trust

‘Integrity’.

H3c: There is a positive relationship between the ‘QAC’ of the Facebook site and trust

‘Ability’.

H4a: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Benevolence’.

H4b: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Integrity’.

H4c: There is a positive relationship between the ‘Privacy’ of the Facebook site and

trust ‘Ability’.

H5a: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Benevolence’.

H5b: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Integrity’.

H5c: There is a positive relationship between the ‘Security’ of the Facebook site and

trust ‘Ability’.

The following chapter will investigate the methodology used in addressing the research

question and hypotheses in this study.

3.8 Conclusion

Social media, trust and signalling theory complement each other significantly.

Understanding the signals given to users through social media sites, as well as

understanding how these signals are interpreted, could help determine more effective

methods for fostering trust in users. This could lead to possible guidelines for

organisations to use social media more effectively and to develop rapid growth.

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Chapter 4: Methodology

4.1 Introduction

The previous chapter identified signalling theory as the principal framework used in

this study. This chapter outlines the research methodology used to investigate the

relationships that exist between users’ trusting beliefs and particular Facebook IT

features.

4.2 Key Variables

By deconstructing the, research model, hypotheses and research question, it can be seen

that the key variables of this study were as follows:

• trusting beliefs (independent variables):

o ‘Ability’

o ‘Benevolence’

o ‘Integrity’

• IT features (dependent variables):

o ‘Usability’

o ‘Transparency’

o ‘QAC’

o ‘Security’

o ‘Privacy’.

4.3 Research Design

4.3.1 A Quantitative Approach

The ongoing debate of research revolves around the quantitative - qualitative paradigm.

Some researchers argue that one is preferential over the other, or that one is more

credible than the other. This is a matter of opinion and has yet to be definitively

determined (Barnes et al. 1994–2012; Bryman 1984; Sale, Lohfeld & Brazil 2002).

Quantitative methods examine the amounts or quantities of one or more variables, and

attempt to examine them in an empirical and numerical manner. Qualitative research

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explores characteristics or qualities that cannot be investigated numerically (Leedy &

Ormrod 2012).

While this study employed a quantitative approach, it is important to mention that

qualitative alternatives were considered. However, it was decided that testing the

hypotheses empirically would allow for clearer and easier identification of the

hypothesised relationships. The benefits of using a quantitative approach for this

research were as follows:

• The collected data were numerical and thus easier to statistically analyse.

• Users with no Internet connection were less likely to actively seek to complete

the survey, thereby filtering out users who were not experienced with Facebook.

• Validation checks of surveys, before being submitted, could be completed with

minimal cost and effort, and the results could be easily organised for data entry

into statistical analysis software.

• Online surveys tend to reach a wider target group - such as students at SCU who

study interstate or students at international locations - and enable participation

in the survey with ease, regardless of geographical boundaries.

As previously discussed, this study sought to empirically analyse the relationship

between trusting beliefs and IT features, including determining which of these

relationships the users responded to most. This was undertaken to identify how best to

build user trust in organisations using social media in particular the Bleach* Festival

Facebook site.

4.3.2 Survey Method

Surveys produce estimates of what a large number of people may think (Bouck 2005)

and give standardised information, while also maintaining respondent anonymity

(Taylor-Powell 2009). These benefits come with a number of disadvantages and

potential errors - the first of which is a requirement for respondents to have the ability

to read and write in the native language of the survey (NEDARC 2006). Another

potential source of error is known as ‘coverage error’, which can occur when members

of a population do not have an equal chance of being selected to be part of the sample

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(Bouck 2005). Sampling errors occur if the sample is too small to achieve a decent

level of representation of an entire population (Bouck 2005). Additionally, results can

be biased if the response rate is low (Taylor-Powell 2009). Further, important

information can be missed because questions and answers are predetermined and do not

always allow for extra information or justification of answers (Taylor-Powell 2009).

4.3.3 Questionnaire Design

Figure 4.1: Partial Screenshot of Survey Website Questions

Figure 4.1 shows a partial screenshot of the survey website. The complete survey, how

the questions were grouped, and further justification for the other questions can be

found in the Appendix A. Justification of the key questions is discussed in the

following sections.

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4.3.3.1 Demographic and Experience Measures

Seven questions were included in the survey to identify demographic influences from

the sample used. Demographic variables included, gender, age, level of education,

computer skills, social media experience, Facebook participation and Facebook

posting. The influences of these items will be discussed further in Chapter 5.

4.3.3.2 IT Features

‘Usability’1 (6 items obtained from Benlian and Hess [2011]): These questions helped

the researchers understand how ‘Usability’ affects user trust in social networking sites.

These questions were formative and required the user to assess certain features of the

social media Facebook site. While opinions may vary from each individual and were

based on their own experience levels using Facebook, these questions were still

expected to provide a good representation of the general consensus for trust building

through social media site ‘Usability’.

‘Transparency’1 (5 items obtained from Benlian and Hess [2011]): These questions

helped the researchers understand how the business/operator of the social media

Facebook site (page) involvement affects user trust in social networking sites, and how

easily certain information is available about the business/website. These questions were

formative and required the user to assess how businesses use social media sites and

how the business engages with the user. While opinions may vary between individuals

and were based on their own experience levels using Facebook or other social media

sites, as well as the businesses encountered online, these questions were still expected

to provide a good representation of the general consensus for social networking sites

trust building through business interactions.

‘QAC’1 (4 items obtained from Benlian and Hess [2011]): These questions helped the

researchers understand how ‘QAC’ affects users’ trust in the business. These questions

were formative and required the user to assess the reliability of the information

provided. While the questions were subjective, the information gathered was still

1

See the Appendix A for question groups - that is, which questions focus on ‘Usability’, ‘Transparency’,

‘QAC’, ‘Security’ and ‘Privacy’.

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expected to give the researchers a good indication of how reliable information can

increase or decrease consumer trust.

‘Security’1 (3 items obtained from Benlian and Hess [2011]): These questions helped

the researchers understand how ‘Security’ measures taken by a business on their

website or social media site can affect users’ trust in the business. These questions were

formative and required the user to assess how secure they believed the website was,

based on various website features. The questions were formative, but less subjective, as

the user was asked to identify key elements or IT features of the website/social media

site being used.

‘Privacy’1 (3 items obtained from Benlian and Hess [2011]): These questions helped

the researchers understand how perceived privacy by a user affects users’ trust in the

business. These questions were formative and required the user to assess how data are

handled and how privacy is maintained by the business. The questions were formative,

but less subjective, as the user was asked to identify key elements or IT features of the

website/social media site being used.

4.3.3.3 Trusting Beliefs

‘Ability’2 (4 items obtained from Brengman and Karimov [2012]): These questions

helped the researchers understand users’ perceptions of a business’s ability to provide

and assist/support the user.

‘Benevolence’2 (5 items obtained from Brengman and Karimov [2012]): These

questions helped the researchers understand users’ perceptions of a business’s

‘Benevolence’, which refers to a business demonstrating that they are well meaning,

have goodwill to the customer and express interest in the user and his or her intentions.

1See the Appendix A for question groups - that is, which questions focus on ‘Usability’, ‘Transparency’,

‘QAC’, ‘Security’ and ‘Privacy’.

2See Appendix A for question groups - that is, which questions focus on ‘Ability’, ‘Integrity’ or

‘Benevolence’.

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‘Integrity’2 (4 items obtained from Brengman and Karimov [2012]): These questions

helped the researchers understand how users perceive the integrity of an online

business/social media site. The users were asked to rate honesty, sincerity and

reliability to gauge how trustworthy a business may be.

The data from the survey were recorded in three steps. Each part (one, two and three)

was presented as a separate webpage. This approach was undertaken to first reduce the

number of questions presented to the user, and second because each part of the survey

measured different variables. Part one measured demographics and experience with

Facebook and social media, part two measured the five IT features, and part three

measured trusting beliefs and trust propensity. Additionally, this approach allowed

users to withdraw at various points of the survey, while still recording answers for the

already completed parts.

When considering the pros and cons of a survey, it must be decided if the survey is best

suited to postal or web-based data collection. Web-based data collection is cost

effective (it avoids printing, postage and manual entry of data), allows for instant

distribution, has increased design options and survey features, allows faster return rates

and has reduced time for data entry (Bouck 2005). However, not all people are

technologically savvy, and coding issues can affect responses and results (Bouck 2005).

In contrast, postal surveys tend to have lower response rates, slower response rates,

greater workload levels due to the transcription of data into analysis software and a

higher chance of data entry errors (Ilieva, Baron & Healey 2002).

The survey for this study was created using qualtrics.com, which uses Hypertext Mark-

up Language (HTML) embedded into a powerful server side scripting language called

Hypertext Pre-processor (PHP). Using Likert scales in the survey allowed the

researcher to capture user data with a minimum of data entry errors. However, the

Likert scale has been considered controversial for some time now by many statisticians

because it is argued that data from such scales may not be treated as interval data.

Nonetheless, previous marketing research scales similar to the Likert scale have been

found to communicate interval properties and are thus often treated as interval scales

(Allen & Seaman 2007).

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Allen and Seaman (2007) indicate that the ideal number of points on a Likert scale is

still debatable; however, various studies have found that not having a central point can

negatively affect the mean. Moreover, having a five-point scale is argued to reduce the

ability of the scale to capture extreme responses (Allen & Seaman 2007). Similarly,

while having an 11-point scale may be preferable for researchers, reports of varying

successes with this larger scale have been described across different studies (Cummins

& Gullone 2000; Dawes 2008; Jacoby & Matell 1971; Matell & Jacoby 1972). A

seven-point Likert scale is said to obtain the upper limits of the scale’s reliability, and

was subsequently used on most questions in this survey (Allen & Seaman 2007).

4.4 Target Population and Sampling Frame

The following subsections discuss the target population, sampling frame, sample size

techniques and sampling procedure.

4.4.1 Sampling Frame

‘Sampling frame’ is a statistical term used to describe the population from which a

sample can be drawn (Herek 2009; Trochim 2006; Zikmund 2003). As the objective of

this research was to identify which IT features affect trusting beliefs, the sampling

frame only included people with at least some Facebook experience,. The sampling

frame included SCU students, which allowed for a diverse range of experience, age and

education levels.

The website used to host the survey was qualtrics.com, with the survey being designed

so that each respondent was required to use a link that was emailed to them before they

could participate. Approximately 15,000 students from SCU (2013) were emailed an

invitation to participate in the survey, which required them to use the link provided to

access the site.

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4.4.2 Sample Size Technique

Cochran’s formula was used to calculate the optimum sample size required, for the

continuous data items, to generalise the study to a larger population (Bartlett, Kotrlik &

Higgins 2001). This calculation can be found in Appendix D. The optimum number

calculated was 118 participants; unfortunately this number of responses was not quite

achieved within the time interval available for data collection with a total of 110 valid

responses gathered.

4.4.3 Sampling Procedure

A link to the site hosting the survey was included in the invitation email. Once the

survey link was clicked in the email, users were taken to a page that introduced the

survey, as well as a button to begin the survey process. To uphold the participants’

privacy to the highest standard, the participants were not required to enter a name and

this was not recorded at any point. During the survey design phase and pilot study, the

survey was tested for compatibility issues in various software environments. The

browsers used during testing included Internet Explorer (Versions 9 and 10), Mozilla

Firefox (Version 21.0), Safari 5.1.7 and Google Chrome 27.0.1453.110 m. Further,

these browsers were tested in a number of operating systems with the latest versions of

Windows, Macintosh and Linux. The survey was also designed to be compatible with

mobile telephone/devices, with testing conducted on both iOS and Android operating

systems.

As previously discussed, the sample was taken from the SCU student population. A

copy of the invitation email can be found in the Appendix B. The email sent to the

sample contained detailed information about the survey, the ethics approval and how to

contact the ethics complaint office if the respondent desired. In the invitation, it was

clearly stated that there was no obligation to take part in the survey. Further, those

taking part in the survey could quit at any time during the questionnaire and that,

completion of the survey would be considered implied consent to use the provided

answers for the study. This allowed respondents to freely choose whether they would

like to participate in the survey.

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Self-selection sampling was used for the study because this is a non-random sampling

technique that encompasses users in a specific target population. This approach was

undertaken because it is unlikely that users who were not familiar with Facebook or did

not have an Internet connection would not be sampled.

4.5 Data Collection

The following subsections discuss the pilot study and data collection for the study.

4.5.1 Pilot Study

Before undertaking the study, the survey instrument was pilot tested to ensure that it

was optimised for data collection. The pilot study was presented to the Southern Cross

Business School staff and academic experts who specialise in survey design and

statistics for IT. Ten valid responses were obtained; however, these were not used as

part of the sample for analysis. The feedback from the pilot study was mainly technical

and allowed for the adjustment of issues relating to the flow of the survey and the

information presented to the user.

Overall, positive feedback was received from the pilot study indicating that only very

minor changes needed to occur, including changing two questions to increase user

understanding of what was required, adjustment to the time (reduced) indicated to

complete the survey, and terminating the survey if a user indicated that they did not use

Facebook.

4.5.2 Data Collection

Officially beginning on Monday 2 September 2013 and terminating on Monday 16

September 2013, the data collection produced a total of 110 valid responses over the 14

days that it was available for participation. It was believed that the nature of the study

meant that it applied to a broad number of respondents, who may have an interest in the

findings of the study; as such users were allowed to indicate they would like a copy of

the results of the survey. Chapter 5 discusses the response rate in more detail.

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Issues faced with data collection mainly revolved around lack of student participation.

While a majority of responses came in the first week (93 responses), the minimum

number of respondents required was not met. Therefore, the second week involved

face-to-face contact with students, handing out a printed copy of the invitation email

and asking for participants. This method added an additional 17 valid responses to the

data collection.

4.6 Statistical Analysis

The following subsections discuss the various sampling techniques used to analyse the

collected data.

4.6.1 Descriptive Statistics

Descriptive statistics were initially used to analyse the data as it allows for the

identification of patterns and general trends. The technique also allows for either one

variable or multiple variables to be compared simultaneously (University of New

England 2000a).

4.6.1.1 Mann-Whitney U Test

Similar to a parametric t-test, the Mann-Whitney U test can be used to compare

variables which do not meet the necessary assumptions of statistical normality (Hendrix

2008). In the case of this study this analysis was used to identify any influences on user

responses based on gender.

4.6.1.2 Kruskal-Wallis Test

The Kruskal-Wallis test is used when the data do not meet the normality assumptions.

It is the equivalent of analysis of variance (ANOVA) used with parametric data

(McDonald 2009). This statistical analysis was performed to identify influences on user

responses based on categorical data (experience, education, etc.).

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4.6.2 Multivariate

Multivariate statistics is the observation and analysis of the outcome of three or more

variables simultaneously. Multiple analysis techniques were used to analyse the

research model and related hypotheses.

4.6.2.1 Correlations

Pearson correlations test for associations between variables (University of New

England 2000b). Similarly, Spearman correlations are used to test for correlations when

including ordinal data (Universtiy of Nebraska-Lincoln 2007).

4.6.2.2 Exploratory Factor Analysis

Exploratory factor analysis (EFA) helps to identify underlying relationships between

multiple variables. It aids in linking variables through patterns that may be present, and

reduces the amount of information collected to common factor patterns, making it

easier to analyse and read. Additionally, EFA assists with hypothesis testing by

comparing the significance of each item and the constructs within the dataset (Rummel

2013).

4.6.2.3 Partial Least Squares (PLS)

PLS is closely related to multiple regressions and allows the testing of theoretical

propositions about cause and effect, without the need to manipulate variables (Brannick

2012; Garbin 2012). Further, PLS is used to test the direct and indirect relationships

amongst variables (Lleras 2005). Additionally, PLS is used to test whether multivariate

sets of data fit well with a specific casual model (Wuensch 2012).

Several statistical analyses rely on a number of assumptions about the data. If these

conditions are not met, two main error types can occur, causing the results and analysis

of results to become questionable. When the null hypothesis is incorrectly rejected

(when it is actually true) a Type I error arises (Easton & McColl 1997). Similarly, a

Type II error occurs when a false null hypothesis is not rejected. A Type II error is less

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serious than a Type I error because no conclusions are drawn when a null hypothesis is

rejected (Lane 2006). Additionally, errors in over-estimation or under-estimation of

significance or the greatness of effect can also occur, giving rise to incorrect

conclusions (Osborne & Waters 2002; Rubinfeld 2000). This is discussed further in

Chapter 5

4.7 Conclusion

The research methodologies discussed in this chapter were chosen to test signalling

theory and the hypotheses presented at the beginning of this chapter. Additionally, the

methods for the study were justified and the survey was designed, tested and

implemented - as indicated in this chapter - with the data collected. The data was then

prepared for entry into the statistical analysis software, SPSS. In the following chapter,

the results of the data produced by these methodologies are presented and analysed.

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Chapter 5: Data Analysis

5.1 Introduction

Following the survey and collection methods for this study being established in Chapter

4, this chapter explores the obtained data, and attempts to draw meaning from the

information gathered. Making use of IBM’s SPSS 20.0 statistical analysis software, as

well as Microsoft Excel 2010, this chapter will discuss the response rate, cleaning of

the raw data, descriptive statistics, factors analysis, correlations, regressions, and

parametric and non-parametric tests, including both the Kruskal-Wallis and Mann-

Whitney U tests.

5.2 Data Filtering

Before running statistical analyses on the data, several steps had to be undertaken in

order to ‘clean’ the dataset and make them ready for use. While the survey control

measures - previously indicated in Chapter 4 - were applied to the survey, a number of

submissions were removed. Several surveys were incomplete and 11 respondents stated

that they did not use Facebook. By removing these from the sample, the data was

successfully filtered.

5.3 Response Rate

All SCU students were invited to participate in the online survey, meaning that a total

of approximately 14,858 (SCU 2012) individuals had the opportunity to participate in

the study.

Number of valid surveys completed

Response rate =

Number of participants contacted – out of scope

Response rate = 110 ÷ (14,858 – 0)

Response rate = 0.0074

Response rate = 0.74 % (DAA 2009).

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A response rate of 0.74 % is very small when compared to the total number of

contacted participants. Nonetheless, due to the use of non-probability sampling, the low

response rate of 110 valid responses did not affect the validity of the data (Saunders,

Lewis & Thornhill 2003). Working with the time limitations set for the study, the low

response rate was sufficient for the data analysis and allowed investigation of the

research question. As non-probabilistic sampling was used, the study was not seeking

to generalise the findings towards a general population.

5.4 Descriptive Statistics

A descriptive analysis of the dataset is presented in the following subsections.

Descriptive statistics have only been conducted for the demographic measures to

compare various attributes of respondents.

5.4.1 Demographic Measures

Three items were included in the survey to gauge an understanding of the various

characteristics of the respondents. Having this measure provided the opportunity to

identify potential differences among subgroups the sample. Additionally, highlighting

demographical differences provides future researchers a comparison point, should the

study be repeated with another sample. The demographic items in the survey included:

• gender

• age

• level of education.

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Figure 5.1: Gender Distribution

As shown in Figure 5.1, the participants consisted of 38 males (34.5%) and 72 females

(65.5%). Thus, the small sample size was unable to satisfy the conventional gender

confidence level of 95% (Bartlett, Kotrlik & Higgins 2001). However, the sample size

does conform to a 90% confidence interval with a 5% margin of error.

When asked to indicate the highest level of education completed, the respondents may

have seen this question as ambiguous. They may have presumed that the item referred

to the current level of study being undertaken. As such, this question was interpreted to

indicate either the level of education currently being studied or the level previously

studied. Figure 5.2 displays the response frequency distribution for this particular

survey item.

Figure 5.2: Level of Education Distribution

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Over 41% of respondents had completed or were completing an undergraduate degree,

which is substantially higher than the general national population. According to the

Australian Bureau of Statistics (2012), approximately 19% of the Australian population

holds a university degree. This was expected based upon the use of students as

respondents.

The final variable discussed for demographic measures was age. Figure 5.3 displays the

distribution of ages, with a minimum age of 18 years to a maximum age of 62 years.

Figure 5.3: Age Distribution

5.4.2 Experience Measures

Two experience measures were included in the survey to assess the respondents’ level

of technical and social media experience. Firstly, using a five-point scale, the

respondents were asked to rate their perceived level of computer skills. The descriptors

used on the scale included novice, beginner, intermediate, advanced and expert. The

histogram in Figure 5.4, following, shows the frequency distributions of computer

skills.

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Figure 5.4: Computer Skills Distribution

Similar to other studies (Coles 2010; Kendell 2012), the majority of respondents (>

98%) perceived themselves as being experienced in using computers (intermediate

skills or higher), with over 52% of respondents being advanced or expert users. This

indicated a sample of highly computer-literate respondents.

The second experience measure included on the survey was the number of years a

respondent had been using social media. The respondents self-identified the number of

years of experience along a seven-point scale, ranging categorically from < 1 to > 10

years. The distribution can be seen in the histogram in Figure 5.5.

Figure 5.5: Social Media Experience Distribution

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Over 72% of respondents indicated that they had five or more years of experience with

social media. This response indicates that not only was the sample ‘computer literate’,

but they were also ‘social media aware’. The table below shows the other key

descriptive statistics related to experience.

Table 5.1: Key Descriptive Statistics Related to Respondents’ Experience

Scale Mean Median SE SD

Computer skills 5 points 3.55 4.00 0.059 0.615

Social media experience 7 points 4.35 4.00 0.155 1.622

5.4.3 Facebook Participation Measures

Two items were included in the survey to measure the respondent’s level of experience

with Facebook. The first item asked the respondents to rate the amount per month they

participate in Facebook activities. Over half the sample (> 65%) indicated that they

participate 30 or more times per month in some form of Facebook activity (such as

commenting, liking and messaging). The second measure of Facebook participation

was the number of times per month the respondents posted on the social media

platform. The histograms following show the frequency distributions of both measures.

Figure 5.6: Facebook Participation Distribution

Figure 5.7: Facebook Posting Distribution

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5.5 Non-Parametric Tests

To test for differences and trends in the demographics of the sample, non-parametric

tests were undertaken. The demographic measures on, gender, participation, education

and computer skills were the main focus of the following non-parametric tests. Since

gender was the only ordinal data set, a Mann-Whitney U test was used. Participation,

education and computer skills were all categorical data therefore Kruskal-Wallis tests

were used.

5.5.1 Mann-Whitney U Test for Gender

The table below summarises some of the more significant results of the Mann-Whitney

analysis for gender. Table 5.2 shows that Facebook participation, reliability of

information and business excellence in service, have the highest significance values

(.000)

Table 5.2: Significant Values from Mann-Whitney Test for Gender

Question Item Identifier Asy. Sig. Mann-

Whitney

8 Facebook participation FP1 .000 819.5

22 Layout/design U5 .003 905

23 Broken links U6 .001 841.5

24 Finding business information T1 .004 926

26 Advertisement placement T3 .009 960

27 Finding business goal/purpose T4 .006 941.5

30 Content quality QAC2 .004 927

31 Reliability of information QAC3 .000 820

37 Links to privacy policy P2 .008 951

40 Business understands market A2 .003 916.5

42 Business excellence in service A4 .000 797.5

43 Business willingness to support/assist B1 .003 910

47 Business is well meaning B5 .007 950

52 Business is sincere I4 .004 923.5

An in depth examination of significant items influenced by gender, identified in Table

5.2, revealed that in this sample:

• males tended to rate their computer skill higher

• the average age of females in the sample was older than males

• females in the sample had higher education levels

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• females in the sample had more experience with, participated and posted more

often on social media sites

• males rated overall ‘Usability’, ‘Transparency’, ‘QAC’, ‘Security’, ‘Privacy’

and the three trusting beliefs lower than did females.

5.5.2 Kruskal-Wallis Tests for Education, Participation and Computer Skills

5.5.2.1 Education

The table below shows the summary of the Kruskal-Wallis test for education.

Table 5.4: Significant Values for Kruskal-Wallis Test for Education

Question Item Identifier Asymptotic significance

9 Facebook posting FP2 0.000

18 Navigation U1 0.015

20 FAQ/help U3 0.013

21 Group lists U4 0.040

22 Layout/design U5 0.003

24 Finding business information T1 0.011

25 Link to terms of use T2 0.001

27 Finding business goal/purpose T4 0.000

28 Time/manner of replies T5 0.000

29 Reputation mechanisms QAC1 0.043

30 Content quality QAC2 0.003

31 Reliability of information QAC3 0.001

33 Data transmission S1 0.001

34 Security assurances S2 0.000

35 Reporting vulnerabilities S3 0.000

36 Information disclosure P1 0.000

37 Links to privacy policy P2 0.003

38 Personal information changeability P3 0.001

39 Business competence A1 0.001

40 Business understands market A2 0.003

41 Business product knowledge A3 0.002

42 Business excellence in service A4 0.003

43 Business willingness to support/assist B1 0.001

44 Business has good intentions B2 0.000

45 Business has goodwill B3 0.000

46 Business has customer interests at heart B4 0.002

47 Business is well meaning B5 0.004

48 Business reliability of promises I1 0.001

49 Business honesty I2 0.002

50 Business keeps promises I3 0.000

52 Business is sincere I4 0.000

Table 5.5 below shows a summary of the mean ranks (for some of the significant

variables shown in Table 5.4) for education.

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As can be seen from Table 5.4, associations of high significance exist on 31 items.

From the mean ranks shown in Table 5.5, a trend can be seen that, as levels of

education increase, the mean rank also increases for many of the items.

Table 5.5: Mean Ranks for Level of Education

In comparison, the mean rank of posting on Facebook decreased as the level of

education increased.

5.5.2.2 Computer Skills

All items except for ‘years with social media experience’ were found to be non-

significantly associated with computer skills. This may possibly be due to user social

media experience increasing as computer knowledge increases over time.

Mean ranks

Q Item ID School TAFE Undergraduate Postgraduate

23 Broken links U6 43.33 54.34 59.98 60.74

25 Terms of use T2 34.72 51.36 63.21 66.79

27 Goal/purpose T4 31.52 49.89 65.12 67.74

29 Reputation mechanisms QAC1 42.30 50.39 59.71 67.21

33 Data transmission S1 38.43 47.14 59.70 75.68

34 Security assurances S2 33.41 48.70 64.32 68.76

35 Report vulnerabilities S3 34.74 46.91 63.75 70.61

36 Information disclosure P1 39.54 46.70 58.52 77.68

37 Links to privacy policy P2 38.87 49.14 59.65 72.95

38 Information changeability P3 39.37 45.64 60.54 74.24

39 Business competence A1 35.13 51.18 61.76 70.00

41 Product knowledge A3 35.28 53.18 62.37 66.03

42 Excellence in service A4 36.46 50.32 63.41 65.39

43 Willing to support/assist B1 32.43 55.34 62.23 67.32

44 Good intentions B2 32.93 50.11 63.37 70.00

47 Well meaning B5 34.52 58.34 61.66 62.68

48 Reliability of promises I1 32.63 54.61 62.71 66.76

49 Business honesty I2 35.41 51.93 62.16 67.82

50 Business keeps promises I3 32.83 52.91 62.41 69.21

52 Business is sincere I4 32.26 51.18 62.63 71.37

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Table 5.6: Mean Ranks for Computer Skills

5.5.2.3 Facebook Participation

Table 5.6 (above) shows the significant associations between Facebook participation

and the following items: age (D2) (discussed in parametric tests), posts per month on

Facebook (FP2), navigation (U1), communication (U2), terms of use information (T2),

feedback (QAC4), security of data (S1), reporting (S3), disclosure (P1) and

changeability (P3). There did not appear to be any trends between participation and any

other items, according to the mean ranks table.

Table 5.7: Kruskal-Wallis Test for Facebook Participation

Question Items Identifier Asymptotic significance

3 Age D2 0.001

9 Facebook posting FP2 0.000

18 Navigation U1 0.050

19 Communication U2 0.010

25 Link to terms of use T2 0.011

32 Feedback mechanisms QAC4 0.005

33 Data transmission S1 0.003

35 Reporting vulnerabilities S3 0.008

36 Information disclosure P1 0.024

38 Personal information changeability P3 0.002

Mean ranks

Q Item Identifier Beginner Intermediate Advanced

6 Social media experience E2 10.00 46.64 60.62

8 Facebook participation FP1 24.00 52.87 54.22

20 FAQ/help U3 16.75 50.65 56.58

22 Perceived broken links U5 16.50 52.50 54.85

23 Broken links U6 20.75 53.12 54.10

25 Link to terms of use T2 25.00 50.54 56.38

26 Advertisement placement T3 16.25 50.96 56.31

31 Reliability of information QAC3 10.00 53.32 54.32

33 Data transmission S1 8.00 53.37 54.35

36 Information disclosure P1 13.50 52.10 55.34

37 Links to privacy policy P2 23.50 49.18 57.72

38 Information changeability P3 12.50 52.80 54.72

39 Business competence A1 14.00 53.01 54.46

40 Business understands market A2 16.50 53.13 54.25

41 Business product knowledge A3 18.50 52.77 54.52

43 Willingness to support/assist B1 8.50 52.99 56.69

44 Business has good intentions B2 10.50 53.31 54.31

48 Business reliability of promises I1 9.00 53.39 54.29

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5.6 Exploratory Factor Analysis (EFA)

To analyse the constructs (or factors) in the research model, Exploratory Factor

Analysis (EFA) can be used to explore the proposed structure and assess whether the

items or questions used in the survey are testing what they are intended to test.

Additionally, the use of EFA aids in determining whether the research hypotheses are

supported.

The factors mentioned in the original research model were derived from a similar study

conducted by Benlian and Hess (2011). The five aforementioned IT features (discussed

in Chapter 2) were used to measure trust. However, the trust measured by Benlian and

Hess (2011) was one-dimensional and not split into composite factors. Therefore, based

on numerous studies that identify trust as multidimensional (Brengman & Karimov

2012; Costigan, Iiter & Berman 1998; Karimov et al. 2011; McKnight, Choudhury &

Kacmar 2002; Simpson 2012; Tan & Sutherland 2004), it was deemed appropriate to

investigate whether the proposed IT features could affect the different facets of trust.

5.6.1 Assumptions

For an EFA to be undertaken, the data must meet certain statistical assumptions.

5.6.1.1 Assumption of Normality

The assumption of normality presumes that the data are distributed normally. This

condition was met and is explained in further detail in Section 5.7.1.4.

5.6.1.2 Assumption of Linearity

Assumption of linearity assumes that the data are linear and that there are no outliers.

This can be tested by looking at the scatterplot matrices for the closeness of points

along the slope, and further making sure there are no curvilinear relationships. Several

matrices were generated for this purpose (see Appendix E). From the matrices, it could

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be seen that the data were relatively linear and therefore the assumption of linearity was

found to be met.

5.6.1.3 Assumption of Sample Size

The sample size assumption presumes that the sample size is large enough to calculate

reliable estimates of correlations between variables. This can be calculated via the ratio

N/k (where N is the sample size [110] and k is the number of items in the survey [34]).

Ideally, a ratio of approximately 20:1 is preferred, but an EFA will work with a 5:1

ratio, or even a ratio as low as approximately 3:1.

Ratio = N ÷ k

= 110 ÷ 34

= 3.24

(Friel 2010; Newsom 2012; Williams, Brown & Onsman 2012).

Based on the above calculation, the ratio for sample size was approximately 3:1,

indicating that this assumption was successfully met.

5.6.1.4 Assumption of Factorability

This assumes some correlatability; however, the data should not have multicollinearity

or singularity. Factorability may be tested using measures of sampling adequacy, such

as the Kaiser-Myer-Olkin (KMO) (value should be > .5) and Bartlett’s test of sphericity

(value should be < .05). According to the KMO and Bartlett’s test, this assumption was

met.

Table 5.8: KMO and Bartlett’s Test of Sampling Adequacy

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5.6.2 Findings of the EFA

Table 5.9 following, summarises the results of the EFA, the complete EFA is shown in

Appendix F. It was found that several items had substantial cross-loading between

constructs. The items highlighted in pink (Q21, Q24, Q25, Q27, Q28 and Q32) were

therefore removed from the questionnaire due to the cross-loading (at approximately

the same levels) into several of the identified factors.

Table 5.9: EFA Loadings

Question Item Identifier Related Component

18 Navigation U1 Usability

19 Communication U2 Usability

20 FAQ/Help U3 Help

21 Group Lists U4 REMOVED

22 Layout/Design U5 Usability

23 Broken Links U6 OwnerFacebook

24 Finding Business Information T1 REMOVED

25 Link to Terms of Use T2 REMOVED

26 Advertisement Placement T3 PrivacySecurity

27 Finding Business Goal/Purpose T4 REMOVED

28 Time/Manner of Replies T5 REMOVED

29 Reputation Mechanisms QAC1 Help

30 Content Quality QAC2 OwnerFacebook

31 Reliability of Information QAC3 OwnerFacebook

32 Feedback Mechanisms QAC4 REMOVED

33 Data Transmission S1 PrivacySecurity

34 Security Assurances S2 PrivacySecurity

35 Reporting Vulnerabilities S3 PrivacySecurity

36 Information Disclosure P1 PrivacySecurity

37 Links to Privacy Policy P2 OwnerFacebook

38 Personal Information Changeability P3 PrivacySecurity

39 Business Competence A1 Trust 40 Business Understands Market A2 Trust 41 Business Product Knowledge A3 Trust 42 Business Excellence in Service A4 Trust 43 Business Willingness to Support/Assist B1 Trust 44 Business has Good Intentions B2 Trust 45 Business has Goodwill B3 Trust 46 Business has Customer Interests at Heart B4 Trust 47 Business is Well Meaning B5 Trust 48 Business Reliability of Promises I1 Trust 49 Business Honesty I2 Trust 50 Business Keeps Promises I3 Trust 52 Business is Sincere I4 Trust

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The EFA indicated the dataset contained only five factors. These factors did mirror

some of the constructs identified by Benlian and Hess (2011). Similar to the Benlian

and Hess (2011) study, and different from the three proposed trusting beliefs proposed

by Brengman and Karimov (2012); ‘Trust’ was combined into one factor because the

EFA showed that it was unable to be separated in the case of this study.

Of the original six items used to measure ‘Usability’, three measures formed the basis

for a single factor, stilled titled ‘Usability’. It was found that two of the ‘Usability’

measures were part of other factors (discussed below). The last item measuring

‘Usability’ in the Benlian and Hess study (2011) was removed as it cross-loaded into

several factors.

The second identified factor was named ‘PrivacySecurity’ as it contained five of the six

items identified by Benlian and Hess (2011) as separately measuring the constructs

‘Privacy’ and ‘Security’. It also included a single item identified by Benlian and Hess

(2011) which was originally used to measure ‘Transparency’. It should be noted that all

other items measuring ‘Transparency’ were removed from the study as they cross-

loaded into most factors (see Appendix F for full EFA results).

The newly named factor ‘Help’ contained two items from the Benlian and Hess (2011)

study. One of which was originally used to measure ‘Usability’, the other was used to

measure ‘Quality Assured Content’ (QAC). In the case of this study it should be noted

that both of these items measures Facebook specific IT-features.

The last factor identified named ‘OwnerFacebook’ consists of three items, one of which

was a measure of ‘Usability’, two of which were measures of ‘QAC’. It should also be

noted that all three of these items are directly controlled by the owner of the Facebook

page, rather than the Facebook site. The ‘OwnerFacebook’ construct may have loaded

as it did due to the modification of the questions to relate them to the Bleach* Festival

Facebook page. While this was an unexpected result, it did highlight the importance of

having organisation-specific information and features on a Facebook page.

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5.7 Parametric Test

Parametric tests were run to test for significance between age and various other

independent variables measured in the sample. Age - which uses continuous data - was

tested against participation, education and computer skills measures using parametric

analyses.

5.7.1 Parametric Test Assumptions

As parametric tests require closer adherence to certain assumptions than do non-

parametric tests (Pallant 2011), the following subsections will briefly discuss the

dataset and whether it met the criteria required for the parametric tests to be completed.

5.7.1.1 Assumption 1: Level of Measurement

The level of measurement assumption requires the use of a continuous scale, rather

than discrete categories of data (Pallant 2011). As age was measured along a

continuous scale (18 to 99 years old), this assumption was met.

5.7.1.2 Assumption 2: Random Sampling

This assumption requires that scores be obtained from a random sample within a

population. The population chosen was SCU students, with the survey open to all

students. It can be difficult to obtain a truly random sample (Pallant 2011) and, while

the sample used was convenient, Tabachnick and Fidell (2007) indicate that once a

population has been selected, a researcher should do their best to make the sample as

random as possible. In the case of this study, this was done by not placing restrictions

on students wishing to participate in the survey.

5.7.1.3 Assumption 3: Independence of Observations

Independence of observations assumes that each observation does not influence or is

not influenced by any other observation. Stevens (1996) and Pallant (2011) both

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indicate that a violation of this assumption is serious. Nonetheless, as no group data

were collected, it was assumed that this assumption was met successfully.

5.7.1.4 Assumption 4: Normal Distribution

Normal distribution must be met in order for parametric techniques to be used on a

dataset. Generally, by having a larger sample size (30+), violation of this assumption

should not be cause for great concern (Pallant 2011). While the descriptive statistics

appeared to show relatively normal distributions, tests for normality (Shapiro-Wilk), Q-

Q plots and Boxplots were used to further assess for normal distributions. The tables

and graphs following, further indicate that the data for age, education and computer

skills were fairly normally distributed.

Table 5.10: Shapiro-Wilk Test of Normality

Shapiro-Wilk

Statistic df Sig.

Age .908 110 .000

Level of education .858 110 .000

Computer skills .776 110 .000

Participation .768 110 .000

Figure 5.8: Q-Q Plot of Age, Showing Normality

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Figure 5.9: Boxplot of Computer Skill Figure 5.10: Q-Q Plot for

Level of Education

5.7.1.5 Assumption 5: Homogeneity of Variance

For tests for homoscedasticity, it is assumed that the variability of scores is similar for

each sample or group (in this case, each item/variable). Lack of homogeneity between

variances can increase the occurrence of Type I errors (Abrams 2007; Chen et al. 2003;

Osborne & Waters 2002; Pryce 2002). Due to its robustness, a Levene’s test was

chosen and completed to test for homogeneity of variance. This showed that there was

significant difference between the variances. Thus, this condition was not met for the

demographic data. Nonetheless, as both ANOVA and t-tests are themselves robust to

violations of this assumption, this should cause no real concern when analysing the

data. Table 5.12 shows the significance values of Levene’s test.

Table 5.11: Significance for Leven’s Test

Sig.

Level of education .027

Computer skills .000

Participation .001

Table 5.12: Test of Homogeneity

Levene statistic Sig.

PrivacySecurity 4.594 .012

OwnerFacebook 1.861 .161

Trust .740 .479

Help .375 .688

Usability .020 .980

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Table 5.13 shows the results of the Leven’s test for the five factors produced by the

EFA. It indicates that all variables/constructs, except for ‘PrivacySecurity’, were non-

significant for variance, meaning that the assumption for homogeneity for the five

factors was met. ‘PrivacySecurity’ should not cause concern because it was only one

variable out of the group, possibly suggesting that the results be interpreted with

caution if one was to investigate this factor further.

5.7.2 ANOVA

ANOVA is a powerful univariate statistical technique used to compare the variance

between different groups or constructs with the variability within each group (Johnson

& Bhattacharyya 1985; Pallant 2011; Tabachnick & Fidell 2007; Xerri 2013). By

understanding the associations that exist between the demographic data, IT features and

trust, the conclusions drawn become richer in meaning and should be more easily

applicable to practice and theory alike. As the ANOVA is a parametric test, the

assumptions mentioned above still apply. Over the page are the statistical findings of

the ANOVA.

5.7.2.1 One-way ANOVA with Post-hoc Tests for Generational Cohorts

Using a one-way ANOVA allows for the testing of statistical differences between one

dependent variable and multiple independent variables. To understand how age affected

the five factors obtained from the EFA (‘Usability’, ‘Privacy’ and ‘Security’, ‘Help’,

‘OwnerFacebook’ and ‘Trust’), age was grouped by generation. The generational

cohorts were as follows:

• Baby Boomers: respondents aged 51 to 65 years old

• GenX: respondents ages 33 to 50 years old

• GenY: respondents aged 18 to 32 years old (Meriac, Woehr & Banister 2010).

From the ANOVA below, it can be seen that a significant difference existed between

one of the three generational cohorts and the following factors: ‘PrivacySecurity’,

‘OwnerFacebook’, ‘Trust’ and ‘Help’.

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Table 5.13: One-Way ANOVA for Generational Cohorts

Mean square Sig.

PrivacySecurity

Between groups 18.262 .001

Within groups 2.293

Total

OwnerFacebook

Between groups 8.734 .007

Within groups 1.664

Total

Trust

Between groups 10.342 .001

Within groups 1.289

Total

Help

Between groups 4.636 .014

Within groups 1.051

Total

Usability

Between groups 2.752 .166

Within groups 1.508

Total

The post-hoc test (Tukey’s honestly significant difference [HSD] test - multiple

comparisons) seen in Table 5.14 was carried out to help determine where the

differences identified in the ANOVA were manifesting (significant values highlighted).

‘Privacy’: GenX had a mean difference of -1.16900 lower than that of GenY, with a

0.003 significance level. Baby Boomers had a mean difference of -1.17641 and 0.012

significance.

Owner’s Facebook: GenX was -0.95575 different than the mean of GenY, having a

significance of 0.005. However, Baby Boomers had a mean difference of -0.22735 than

GenY, but this was not significant (0.786).

‘Trust’: ‘Trust’ indicated that GenX had a difference of -0.97589 to the mean of

GenY, with this difference being significant (0.001). Baby Boomers had a mean

difference of -0.69527, with no statistical significance (0.060).

‘Help’: ‘Help’ shows GenX had a mean difference of -0.66439 to GenY with, 0.015

significance. While Baby Boomers had a mean difference of -0.43291 to GenX, this

was not statistically significant (0.256).

‘Usability’: GenX had a mean difference of -0.53371, with no statistical significance

(0.144). Baby Boomers had a mean difference of -0.22507, again with no statistical

significance (0.771).

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Based on the differences found in this sample between the three generational cohorts,

this would tend to indicate that the older an individual is, the less likely they are to trust

and the more importance they place on the constructs ‘PrivacySecurity’,

‘OwnerFacebook’ and ‘Help’.

Table 5.14: Post-hoc Tukey’s HSD for Generational Cohorts

Post-hoc (Tukey’s HSD)

Dependent variable (I)GenCohorts (J)GenCohorts Mean difference(I-J) Sig.

PrivacySecurity

GenY GenX -1.16900

* .003

BB -1.17641* .012

GenX GenY 1.16900

* .003

BB -.00741 1.000

BB GenY 1.17641

* .012

GenX .00741 1.000

OwnerFacebook

GenY GenX -.95575

* .005

BB -.22735 .786

GenX GenY .95575

* .005

BB .72840 .157

BB GenY .22735 .786

GenX -.72840 .157

Trust

GenY GenX -.97589

* .001

BB -.69527 .060

GenX GenY .97589

* .001

BB .28063 .696

BB GenY .69527 .060

GenX -.28063 .696

Help

GenY GenX -.66439

* .015

BB -.43291 .256

GenX GenY .66439* .015

BB .23148 .739

BB GenY .43291 .256

GenX -.23148 .739

Usability

GenY GenX -.53371 .144

BB -.22507 .771

GenX GenY .53371 .144

BB .30864 .688

BB GenY .22507 .771

GenX -.30864 .688

5.8 Regression Analysis

Testing correlations and running regressions helped determine the accuracy and

restructuring of the proposed research model.

5.8.1 Correlations

As can be seen from both the Pearson (parametric) and Spearman (non-parametric)

correlation tables following, all factors were significantly correlated, indicating that the

four factors (‘Help’, ‘Usability’, ‘OwnerFacebook’ and ‘PrivacySecurity’) had an

impact on trust.

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Table 5.15: Pearson’s Correlation of Factors

Pearson correlations

PrivacySecurity OwnerFacebook Trust Help Usability

PrivacySecurity

Pearson correlation 1 .603**

.648**

.558**

.591

Sig. (2-tailed) .000 .000 .000 .000

Sum of squares and

cross-products 281.855 141.467 136.906103.418 128.170

Covariance 2.586 1.298 1.256 .949 1.176

N 110 110 110 110 110

OwnerFacebook

Pearson correlation .603** 1 .712** .563** .618**

Sig. (2-tailed) .000 .000 .000 .000

Sum of squares and

cross-products 141.467 195.511 125.415 86.800 111.667

Covariance 1.298 1.794 1.151 .796 1.024

N 110 110 110 110 110

Trust

Pearson correlation .648**

.712**

1 .636**

.712**

Sig. (2-tailed) .000 .000 .000 .000

Sum of squares and

cross-products 136.906 125.415 158.554 88.310 115.830

Covariance 1.256 1.151 1.455 .810 1.063

N 110 110 110 110 110

Help

Pearson correlation .558** .563** .636** 1 .732**

Sig. (2-tailed) .000 .000 .000 .000

Sum of squares and

cross-products 103.418 86.800 88.310 121.748 104.379

Covariance .949 .796 .810 1.117 .958

N 110 110 110 110 110

Usability

Pearson correlation .591**

.618**

.712**

.732**

1**

Sig. (2-tailed) .000 .000 .000 .000

Sum of squares and

cross-products 128.170 111.667 115.830104.379 166.869

Covariance 1.176 1.024 1.063 .958 1.531

N 110 110 110 110 110

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Table 5.16: Spearman’s Correlation of Factors

** Correlation is significant at the 0.01 level (2-tailed)

Spearman Correlations

PrivacySecurity OwnerFacebook Trust Help Usability

Spearman’s

rho

PrivacySecurity

Correlation

coefficient 1.000 .575

**

.626*

*

.555 .574**

Sig. (2-tailed) . .000 .000 .000 .000

N 110 110 110 110 110

OwnerFacebook

Correlation

coefficient .575

** 1.000

.709*

*

.555*

*

.622

Sig. (2-tailed) .000 . .000 .000 .000

N 110 110 110 110 110

Trust

Correlation

coefficient .626** .709**

1.00

0

.645*

* .721**

Sig. (2-tailed) .000 .000 . .000 .000

N 110 110 110 110 110

Help

Correlation

coefficient .555** .555**

.645*

*

1.00

0**

.734**

Sig. (2-tailed) .000 .000 .000 . .000

N 110 110 110 110 110

Usability

Correlation

coefficient .574

** .622

**

.721*

*

.734*

*

1.000**

Sig. (2-tailed) .000 .000 .000 .000 .

N 110 110 110 110 110

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5.8.2 Partial Least Squares (PLS)

Following on from the correlations was the PLS. In addition to reaffirming the

correlations mentioned above, PLS also assesses reliability, variances and strength of

association for each factor. It provides a structural model for the factors and helps

further clarify:

• exogenous variables (independent, generally affected by factors outside the

proposed model, and can be seen in the path analysis to have been regressed,

with arrows pointing towards these factors)

• endogenous variables (dependent, generally determined by the proposed model,

have not been regressed, and can be seen with arrows pointing away from these

factors in the path analysis)

• mediating variables

• intervening variables.

The reason for using PLS over other methods - such as covariance-based structural

equation modelling (SEM) - derives from the small sample size obtained from the data

collection. PLS tends to be a more appropriate technique for studies with sample sizes

under 300 (Hair, Ringle & Sarstedt 2011; Xerri 2013). Additionally, the original

research model needed to be tested, and PLS provided a structural model that was used

to compare the original research model with the PLS generated model.

The average variance extracted (AVE), is a measure of the variance for each factor. The

greater the factor loadings for a particular construct, the higher the AVE. As can be

seen from Table 5.18, below, ‘Trust’ has the highest AVE of 0.7575. The composite

reliability and Chronbach’s alpha values all show high reliability, above 0.7. The fact

that the ‘Help’ factor showed a Chronbach’s alpha score of 0.2747 was not a cause for

concern because composite reliability accounts for error and is thus a better measure of

internal consistency (reliability). ‘Trust’ showed a very high score of 0.9759 for

composite reliability and 0.9731 for Chronbach’s alpha, meaning that its ability to

measure trust was very reliable.

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As can be seen from the R Square column, the R Square values were only available for

endogenous and mediating variables. In the case of the PLS model, this was ‘Trust’ and

‘Usability’. Using the R Square values, the variance for each of the endogenous

variables can be determined. As can be seen from the PLS model, the factors of

‘OwnerFacebook’, ‘Help’ and ‘PrivacySecurity’ (exogenous variables) affected

‘Usability’ (intervening variable) and explained 62.25% of the variance of ‘Usability’.

Similarly, ‘Help’, ‘OwnerFacebook’, ‘PrivacySecurity’ and ‘Usability’ affected ‘Trust’

(endogenous variable) and explained 67.3% of the variance.

The PLS algorithm model highlights the strength of association between the factors -

the closer the value along the arrow/path is to one, the stronger the relationship. As

shown in figure 5.11, it can be seen that the strength of the relationship between

‘OwnerFacebook’ and ‘Trust’ (0.356) was high. This meant that, as ‘OwnerFacebook’

features increased, so did ‘Trust’. One thing that should be noted at this point is that all

relationships shown on the PLS were positive; thus, as one increased, the other (‘Trust’

or ‘Usability’) also increased.

Similar to the algorithm model, the bootstrap model provides information on the

significance of the relationships. To assess this model, it is essential to understand the

limits for the t-statistic, p values and confidence interval. The cut-offs were as follows:

• if the t-statistic (number along the arrow) is < 1.96, then p > 0.05, which means

that the confidence interval is less than 95%, which is not considered significant

in this case

• if the t-statistic is > 1.96, but < 2.58, then p < 0.05, and is considered at the 95%

confidence interval to indicate significance

• if the t-statistic is > 2.58, but < 3.29, then p < 0.01, which indicates that the

confidence interval is at 99%

• if the t-statistic is > 3.29, then p < 0.001, which is considered significant at the

99.9% confidence interval (Chen & Lin 2009; Hair, Ringle & Sarstedt 2011;

Hammedi, Van Riel & Sasovova 2011).

To apply this to the bootstrap figure, the ‘OwnerFacebook’ factor relationship to the

‘Trust’ t-statistic was 3.711. This indicated that p < 0.001, which showed that the

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relationship was highly significant. Additionally, due to the test statistic being positive,

it was determined that, as ‘OwnerFacebook’ factors increase, ‘Trust’ will increase. This

will be discussed further in the next chapter.

The yellow boxes shown on the PLS models (figures 5.11 and 5.12) are factor loadings

from the EFA. The main result to report from these is that all items were highly

significant. The minimum t-statistic value for the factor loadings was 11.510; therefore,

they measured the factors well. The goodness of fit (GOF) implied that the model

generated by the PLS accurately reflected the observed data with the expected values.

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Figure 5.11: PLS Algorithm Model

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Figure 5.12: Bootstrap Model

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Table 5.17: PLS Output including GOF

GOF

AVE Composite reliability R Square Chronbach’s alpha Communality Redundancy

Help 0.5788 0.7326 0 0.2747 0.5788 0

Owner Facebook 0.6924 0.8709 0 0.7784 0.6924 0

PrivacySecurity 0.6905 0.9176 0 0.8875 0.6905 0

Trust 0.7575 0.9759 0.673 0.9731 0.7575 0.1131

Usability 0.6531 0.8493 0.6225 0.7333 0.6531 0.317

Average 0.67446 0.86926

GOF = 0.76569

GOF small = 0.1

GOF medium = 0.25

GOF large = 0.36

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Table 5.18: PLS Output Statistics including Parameter Estimates

PLS output statistics

Original sample (O) Sample mean (M)

Standard deviation

(STDEV)

Standard error

(STERR)

T statistics

(|O/STERR|) p

Help -> Trust 0.1307 0.1271 0.0993 0.0993 1.3172 > .05

Help -> Usability 0.5167 0.5211 0.0821 0.0821 6.296 < .001

OwnerFacebook -> Trust 0.3564 0.3541 0.096 0.096 3.7113 < .001

OwnerFacebook -> Usability 0.243 0.2394 0.0732 0.0732 3.3214 < .001

PrivacySecurity -> Trust 0.2041 0.2088 0.0785 0.0785 2.6011 < .05

PrivacySecurity -> Usability 0.1608 0.1618 0.0799 0.0799 2.0129 < .05

Usability -> Trust 0.2803 0.2795 0.1267 0.1267 2.2124 < .05

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Table 5.19: PLS Factor Loadings

Outer loadings (factor loadings)

Help OwnerFacebook PrivacySecurity Trust Usability

Q18-U1 0 0 0 0 0.8028

Q19-U2 0.7146 0 0 0 0

Q20-U3 0 0 0 0 0.7604

Q22-U5 0 0 0 0 0.8583

Q26-T3 0 0 0.7807 0 0

Q29-QAC1 0.8044 0 0 0 0

Q30-QAC2 0 0.8092 0 0 0

Q31-QAC3 0 0.8662 0 0 0

Q33-S1 0 0 0.8634 0 0

Q34-S2 0 0 0.8342 0 0

Q36-P1 0 0 0.8119 0 0

Q37-P2 0 0.8199 0 0 0

Q38-P3 0 0 0.8616 0 0

Q39-A1 0 0 0 0.8885 0

Q40-A2 0 0 0 0.8622 0

Q41-A3 0 0 0 0.826 0

Q42-A4 0 0 0 0.8979 0

Q43-B1 0 0 0 0.8847 0

Q44-B2 0 0 0 0.8962 0

Q45-B3 0 0 0 0.8377 0

Q46-B4 0 0 0 0.7614 0

Q47-B5 0 0 0 0.8741 0

Q48-I1 0 0 0 0.8966 0

Q49-I2 0 0 0 0.8905 0

Q50-I3 0 0 0 0.9004 0

Q52-I4 0 0 0 0.8872 0

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5.9 Final Comments

By undertaking the data analysis outlined in this chapter, several key findings were

uncovered. These findings will be discussed in detail in the following chapter. In

addition, the data analysis showed that the proposed research model required

amendment. Moreover, the data analysis also identified focus areas in Facebook IT

features for engendering trust in potential clients. The various implications of this

study, as well as its conclusions, will be discussed in the next chapter.

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Chapter 6: Conclusions

6.1 Introduction

In Chapter 2, a review of the literature was conducted into the developing area of trust

in social media. Chapter 3 introduced signalling theory as an appropriate theoretical

framework and proposed a specific research model for this study. This chapter re-

examines the proposed research model, hypotheses and research question for this study.

Several conclusions are presented based on the data analysis, followed by discussions

of the various implications and limitations of this study. Finally, future research

opportunities are discussed.

The findings of this study contribute to existing research in social media and trust by

highlighting Facebook IT features that users identify as fostering trust between

themselves and an organisation. Further, it indicates that, in the case of this study,

‘Trust’ cannot be broken down into its three trusting beliefs: ‘Integrity’, ‘Ability’ and

‘Benevolence’.

6.2 Conclusions Related to the Research Hypotheses

The results of the correlation, EFA and PLS analyses presented in the previous chapter

all disprove the original hypotheses.

By examining the results of the EFA and PLS to assess the revised research model, it

can be seen that ‘Trust’ is affected by a number of IT features. However, the ‘Trust’

construct indicated by the EFA was a single measure and not broken into the three a

priori trusting beliefs. The PLS model showed:

• 62.2% of the variance of ‘Usability’ could be explained by the developed

constructs, ‘OwnerFacebook’, ‘Help’ and ‘PrivacySecurity’. ‘OwnerFacebook’

(0.243), ‘PrivacySecurity’ (0.161) and ‘Help’ (0.517) all indicated positive

correlations towards ‘Usability’, which meant that, as one of these factors

increased, ‘Usability’ increased.

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• 67.3% of the variance of ‘Trust’ could be explained by ‘Help’,

‘OwnerFacebook’, ‘PrivacySecurity’ and ‘Usability’. ‘Help’ (0.131),

‘OwnerFacebook’ (0.356), ‘PrivacySecurity’ (0.204) and ‘Usability’ (0.280) all

indicated positive correlations towards ‘Trust’, which meant that, as one of

these factors increased, so did ‘Trust’.

The PLS Bootstrap model indicated that:

• ‘OwnerFacebook’ (3.321), ‘PrivacySecurity’ (2.013) and ‘Help’ (6.296) all

indicated positive significant relationships with ‘Usability’. This indicated that,

as these three factors increased, so did ‘Usability’.

• ‘OwnerFacebook’ (3.711), ‘PrivacySecurity’ (2.601) and ‘Usability’ (2.212) all

indicated positive significant relationships with ‘Trust’. This indicated that, as

these three factors increased, so did ‘Trust’.

Of all the factors in the model, ‘Help’ was the only construct that did not have a direct

significant relationship towards ‘Trust’. Nonetheless, ‘Help’ had a very high

significance value (6.296) towards ‘Usability’, meaning that, by affecting ‘Usability’, it

can indirectly affect ‘Trust’. This is due to ‘Usability’ being significantly related to

‘Trust’.

According to the PLS, the generated structure indicated that having features related to

each of the constructs can increase user trust. This is significantly different to the

findings of Benlian and Hess (2011), who found that only items related to ‘Usability’

and ‘Transparency’ could affect ‘Trust’. This may have been due to Benlian and Hess

(2011) assessing the relationship between consumers and not between an organisation

and consumer, which was the case in this study.

While the hypotheses used for this study where rejected, similar to Benlian and Hess

(2011) having ‘Trust’ as a single construct would have partially validated their results,

in that several items measuring ‘Usability’, and only one single item measuring

‘Transparency’ drawn from their study has an impact on ‘Trust’. However, several

other IT-features were also found to have an impact on ‘Trust’ in this study.

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6.3 Conclusions Related to the Research Problem

The research problem of this study aimed at investigating the relationship between

particular IT features of the Bleach* Festival Facebook page and users’ trusting beliefs.

This was accomplished by a study in which these relationships were assessed.

However, the initial research question and associated hypotheses were found to be

unsupportable, based on the results shown in the previous chapter.

Even though all the hypotheses as stated were rejected, the original research question

‘What is the relationship between key information technology (IT) features of the

Bleach* Festival Facebook page and the trusting beliefs of users?’ has been

addressed. With a model developed (Figure 6.1) explaining which IT-features

influenced users trust of the Facebook page for the Bleach* Festival.

Figure 6.1: Proposed Research Model Based on Findings of this Study

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6.4 Conclusions Related to the Revised Research Model

Based on the findings of the data analysis, it can be concluded that the research model

does need to be reconstructed. Figure 6.1 shows the revised model drawn from the

outcomes of this study. As can be seen, ‘Trust’ is condensed to one construct,

‘Security’ and ‘Privacy’ are combined, ‘Help’ has its own construct, items specific to

the organisation’s Facebook page are included in one construct, and ‘Usability’

maintains its own construct. This new five-construct model highlights areas that should

be given extra consideration by an organisation when developing a Facebook page.

Consistent with the findings of this study, Benlian and Hess (2011) also found that

‘Usability’ was an IT feature capable of engendering trust in online users. However, in

contrast, Benlian and Hess had a separate factor for ‘Transparency’ which they found

was capable of engendering trust in users, whereas only one single ‘Transparency’ item

from their study was found to influence trust in this sample. The differences in

‘Transparency’ may have been affected during the development of the survey, where

questions were at times modified to relate specifically to the Bleach* Festival, as well

as to the context of this study.

6.5 Comparison of Research Models

Comparing the original research model with the revised model (see figure 6.2 below)

highlighted several similarities and differences. Similarities included the retention of

the ‘Usability’, and combined ‘Privacy’ and ‘Security’ construct. However, even these

factors differed slightly from the original; a detailed discussion ensues.

Figure 6.2 (following) shows the following differences:

• ‘Usability’ remained as is; with three of the original items retained. One of the

original items was removed entirely due to cross-loading, and the other two

items moved to other constructs. Furthermore, ‘Usability’ was found to be a

mediating construct between the three factors and ‘Trust’.

• IT-features reduced from five factors to three, with ‘Security’ and ‘Privacy’

merging into a single construct, with almost all of their original items included.

In addition, one measure, T3 - Advertisements are clearly separate from the

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main content on Facebook pages, originally thought to measure ‘Transparency’

was also found to be part of the newly developed ‘PrivacySecurity’ construct.

• A single item from ‘QAC’ and single item from ‘Transparency’ became a new

Facebook IT-feature specific construct titled ‘Help’, with all other

‘Transparency’ items and one of the ‘QAC’ items being removed due to cross-

loading on multiple factors. These two items were:

o U3 - Do you find Facebook support features, such as FAQ or Help

section, useful?

o QAC1 - How strongly do you agree that Facebook allows user to rate

and assess the interactions and transactions with other users via rating or

reputation mechanisms?

• The ‘OwnerFacebook’ construct was based on three items one from ‘Usability’

and two from ‘QAC’ measures. These IT-features all directly related to the

owners content on the Facebook page. These items were:

o QAC2: The content published on the Bleach* Festival Facebook page is

monitored/checked by a third party (such as a moderator or experts).

o QAC3: The Bleach* Festival offers reliable information and no free or

teaser offers are present on the Facebook page.

o U6: The Bleach* Festival Facebook page seems to have broken links or

missing/misleading information that hinders the social media

experience.

• As previously mentioned, the trusting beliefs proposed in the original model,

were combined into one construct identified as ‘Trust’, in the revised model.

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Figure 6.2: Research Model Comparison

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A number of reasons may have influenced the differences seen between the original

model and the revised model:

• The first of which could have been the small sample size used in this study

(n=110) as opposed to the sample size used in the Benlian and Hess (2011)

study (n=364).

• Another influencing factor may have been the use of university students in this

study as opposed to members of an online community, used by Benlian and

Hess (2011). Students may have a higher level of education than online

community members and therefore may assess situations differently or more

critically.

• Third, this study assessed the relationship between users and an online social

media using organisation, while Benlian and Hess (2011) explored trust among

online community users. This could have potentially made a large difference as

the trusting factors between a user and organisation could be different to the

trusting factors between an organisation and user.

• Fourth, as the study was adapted from mainly Benlian and Hess (2011) and

Brengman and Karimov (2012) a large number of changes and modifications

occurred to make the survey relevant to the Bleach* Festival, this in itself may

have been a cause for a large number of differences.

While, it is difficult to identify exactly where the differences arose the above points can

begin to speculate, as well as add to, potential areas of investigation for future research.

The constructs seen in the revised model were strictly based on the items used in the

original model. However, as previously mentioned a number of items were removed

from the revised model. The new constructs while unexpected, are easy to understand.

All ‘Trust’ factors were in one construct, ‘Privacy’ and ‘Security’ devolved into one

construct, with ‘Help’ and ‘OwnerFacebook’ being drawn from several of the original

factors. ‘OwnerFacebook’ focused on items relating specifically to the organisation

itself, whereas ‘Help’ is associated with Facebook specific IT-features. ‘Usability’ was

retained and was found to be influenced by the other three IT-features in the revised

model and having a direct impact on ‘Trust’.

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‘Trust’ may not have been able to be broken down, due to the context or application it

was used in. Although this study found that ‘Trust’ could not be broken down into the

three trusting beliefs, it does not mean that ‘Trust’ is not divisible for every situation it

is used in. As with other studies such as Brengman and Karimov (2012) and McKnight

et al. (2002) ‘Trust’ is able to be broken down. The findings of this study and the

inability to break down ‘Trust’ could be an individual case relating only to certain

situations, such as this study. Similar to the potential influencing factors mentioned

above, the same reasons had potential to impact the decomposition of trust.

Future researchers should not disregard the findings of other studies in this area,

particularly Benlian and Hess (2011). Due to the infancy of this area of study, it is

paramount for future research to take into consideration all studies in the field of social

media and trust, regardless of the findings. While the limitations of this study (section

6.7) where impacted by the scope, time constraints, and level of research being

conducted it did contribute to the body of research in a number of ways including,

investigation of social media trust between consumers and organisations, highlighting

areas which need further investigation, developing a business-to-consumer social media

trust research model, and discussing implications for theory and practice.

6.6 Implications for Theory and Practice

In the case of this study, ‘Trust’ could not be broken into the three trusting beliefs.

However, according to Benlian and Hess (2011), ‘Trust’ can still be used as a measure

to test the effectiveness of the five IT features of a web community (such as Facebook).

Trust is an emerging area of study for a number of disciplines, including e-commerce,

business and marketing. More specifically, as can be seen from this study, trust can be

applied to social media. As signalling theory deals with how sellers communicate

information asymmetry to buyers, trust can be easily applied to these types of business

interactions.

By combining social media, information asymmetry and trust, situations that involve

online organisations attempting to communicate with users via social media rely on

signals to engender trust. Coupled with the investigated IT features, it can be seen that

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all factors identified in the EFA and PLS may be considered important to businesses

and organisations such as the Bleach* Festival using Facebook.

With the information gathered from this study, it can be suggested that the Bleach*

Festival continue to use Facebook as a promotional strategy. However, the festival may

want to tailor specific IT features in order to increase the level of user trust.

Suggestions from the study include having a help section dedicated to the Bleach*

Festival Facebook page (such as how someone can contact the Bleach* Festival).

Additionally, having a personalised privacy policy for the Bleach* Festival Facebook

page to indicate how user data will be treated if a user does make contact via Facebook

with the organisation could aid in increasing trust in the organisation.

6.7 Limitations of the Study and Future Research Recommendations

While the study did not completely support the previous findings outlined by Benlian

and Hess (2011), their findings should not be neglected in future research. Various

factors may have impacted this study, such as the small sample size. Due to the scope

of this study, a number of limitations were placed on the research.

First, this study did not investigate other types of industry because it primarily focused

on the Bleach* Festival in the tourism industry. Investigating other industries may have

provided further insight into how the use of Facebook could be enhanced. Additionally,

various industry consumers may identify with different IT features as important for

building trust.

Second, a variety of social media types was not investigated. By focusing only on

Facebook, this study was limited to only Facebook users, which may have contributed

to the low response rate. Nonetheless, other social media platform users may not

identify with the IT features proposed by Benlian and Hess (2011) or this study, giving

rise for this study to be repeated in the future with other social media sites, such as

Twitter or Tumblr.

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Third, the study conducted did not look at other samples, and was limited to students

only. Further, using quantitative methods to gather data did not allow for a richer

individual understanding of why certain aspects are important to people. Therefore, re-

conducting this study with a broader sample and a qualitative approach may reveal

more details and insights into developing trust-engendering social media sites.

Unlike the Brengman and Karimov (2012) study, this study did not look at the effect of

trust propensity. Trust propensity is the ability or willingness of an individual to trust

another party. Trust propensity could have a major effect on the outcome of trust. If this

study were conducted again in the future, considering trust propensity may indicate

several differences between users and how willing they are to trust an organisation

using social media. Further, understanding how trust propensity affects user

perceptions may aid researchers in developing ways to signal trust even to individuals

who do not trust very easily.

By not investigating perceived levels of risk to users of social media sites, this research

did not identify influences that diminish user trust. This limitation may warrant a study

of its own because it is investigating what factors prevent trust from being engendered,

which is almost the directly opposite aim of this study.

6.8 Final Comments

This study looked at five Facebook IT features - ‘Usability’, ‘Transparency’,

‘Security’, ‘Privacy’ and ‘Quality Assured Content’ (QAC) - and sought to analyse

possible relationships that exist between these features and three trusting beliefs -

‘Integrity’, ‘Ability’/‘Competence’ and ‘Benevolence’.

The empirical analysis showed that, in the case of this study, the trusting beliefs were in

fact one construct, simply known as ‘Trust’. Further, the five proposed IT features had

to be reconsidered based on the respondents’ answers. The new IT features

(‘OwnerFacebook’, ‘PrivacySecurity’, ‘Help’ and ‘Usability’) were all derivatives of

the original IT features. However, it was apparent from the study that ‘Trust’ was

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influenced directly or indirectly by all the new IT features, suggesting that some items

used in the original IT features cross-loaded and tested for the same thing.

The study conducted contributes to existing research in social media and trust by

highlighting Facebook IT features that users identify as fostering trust between

themselves and an organisation. Further, it indicates that, in the case of this study,

‘Trust’ cannot be broken down into its three trusting beliefs: ‘Integrity’, ‘Ability’ and

‘Benevolence’.

By using the findings of this study, it is hoped that organisations that use Facebook will

see the benefit of using tailored information on their Facebook pages to engender trust

in users and thus allow their online community to grow. In particular the owner of the

Facebook page, by paying meticulous attention to the content, may be able to directly

influence users’ trust in their organisation. Specifically the owner should look at, the

reliability of information provided, monitor the content on their page often and verify

the validity of hyperlink on their site.

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Appendices

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Appendix A

Survey Questions

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Question Justification Source No. Code

PART 1 – Demographical, Experience and Basic Trust Data

Demographics

What is your

gender?

Male/ Female. This allows

researchers to gauge which

gender may take part in

online social media activity

the most.

Coles (2010)

2

D1

What is your age? Free text entry. This

allows the researcher to

gauge which age group/s

participates in online social

media the most

3

D2

What is the highest

level of education

completed?

High School, TAFE,

Undergraduate, Postgraduate. Helps the

researcher identify if users

with higher education

levels use online social

media more or less than

those with lower education

levels

4

D3

Experience

What computer

skill level do you

believe you are at?

Novice, Beginner,

Intermediate, Advanced,

Expert. While this question

may be very subjective it

allows users to rate

themselves at the level they

believe there skills in

computers lay.

Furthermore, this questions

aide’s researchers in

identifying how users

perceive their own

computer skills.

Coles (2010)

5

E1

How many

years’ experience

do you believe you

have in using

Online Social

Media; e.g.

posting, building a

Less than 1 year, 1-2yrs,

2-3, 4-5, 6-7, 8-9, 10 or more years. This allows

the researcher to gauge how

comfortable with online

social media users may be

based on the number of

6

E2

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network of

connections, etc

(includes early

social network sites

such as GeoCities

(1995), SixDegrees

(1997), and

Blogger (1999)?)

years’ experience they

have.

Do you use

Facebook?

Yes/ No. As the study is

based on Facebook it is

essential for the research to

know which participants

use it, as it will allow for

the disregarding of

responses of users who do

not use Facebook

7

E3

PART 2 – Trust building IT-features and Facebook Data

Facebook Participation

How often do you

participate in

Facebook activities

(examples of

Facebook activities

include:

commenting on a

post, liking a post/

comment/ image/

video, or chatting)?

Less than once a month,

~5 a Month, ~10 a Month,

~15 a Month, ~20 a

Month, ~30 a Month, 30

or more times a month. This question may

confuse users, as they may

interpret other Facebook

activities such as adding

friends or sending friend

requests as not a ‘Facebook

Activity’. Regardless, this

question aims at identifying

the level of participation of

users.

Benlian &

Hess (2011)

8

FP1

On average how

often do you post

on Facebook?

Less than once a month,

~5 a Month, ~10 a Month,

~15 a Month, ~20 a

Month, ~30 a Month, 30

or more times a month. This question aims

at gauging how often a

participant uses Facebook

to disperse information to

other users.

9

FP2

Usability

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The Bleach*

Festival Facebook

page is simple to

navigate

7PLS. These questions help

researchers understand how

usability impacts user trust

in social networking sites.

These questions are

formative and require the

user to asses certain

features of the social media

site Facebook. While

opinions may vary from

each individual and is based

on their own experience

levels using Facebook or

other social media sites,

these questions should still

provide a good

representation of the

general consensus for social

networking sites trust

building through website

usability.

Benlian &

Hess (2011)

18

U1

Facebook provides

direct and indirect

ways to

communicate with

others

19

U2

Do you find

Facebook support

features such as a

FAQ or help

section useful?

20

U3

The ability to group

lists of friends

allows for

enhanced social

networking on

Facebook

21

U4

The layout/ design

of the Bleach*

Festival Facebook

page looks

professional

22

U5

The Bleach*

Festival Facebook

page seems to have

broken links or

missing/

misleading

information which

hinders the social

media experience

23

U6

Transparency (Based on the Bleach* Festival Facebook page)

It is easy to find

information (such

as name, address,

description and

photos) about the

Bleach* Festival

7PLS. These questions

help researchers understand

how business/ operator of

the social media site

Facebook (page)

involvement impacts user

trust in social networking

sites and how easily certain

information is available

Benlian &

Hess (2011)

24

T1

Information about

the terms of use are

easy to find on

25

T2

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Facebook about the business/ website.

These questions are

formative and require the

user to assess how

businesses use social media

sites and how the business

engages with the user.

While opinions may vary

from each individual and is

based on their own

experience levels using

Facebook or other social

media sites as well as the

businesses encountered

online, these questions

should still provide a good

representation of the

general consensus for social

networking sites trust

building through business

interactions

Advertisements are

clearly separate

from the main

content on

Facebook Pages

26

T3

The goal and

purpose of the

Bleach* Festival is

clearly stated/

easily available via

their Facebook

page

27

T4

The Bleach*

Festival replies

quickly and in a

courteous and

professional

manner to user

questions and

comments on

Facebook (this can

be judged by the

time stamps on

existing

discussions on the

Bleach* Festival

Facebook page/

conversations)

28

T5

Quality Assured Content (Based on the Bleach* Festival

Facebook page and Facebook in general)

How strongly do

you agree that

Facebook allows

users to rate and

assess the

interactions and

transactions with

other users via

rating or reputation

mechanisms?

7PLS. These questions help

researchers understand how

quality assured content

impacts user trust in the

business. These questions

are formative and require

the user to assess how

reliable the information

provided is. While the

questions are subjective the

information gathered can

still give the researchers a

good indication of how

reliable information can

Benlian &

Hess (2011)

29

QAC1

The content

published on the

Bleach* Festivals

Facebook page is

30

QAC2

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monitored/ checked

by a third party

(such as moderator

or experts)

increase or decrease

consumer trust.

The Bleach*

Festival offers

reliable information

and no free or

teaser offers are

present on the

Facebook page

31

QAC3

Do you believe a

reliable feedback

mechanism is

provided by the

Bleach* Festival to

report unacceptable

behavior of

community

members?

32

QAC4

Security (Based on Facebook in general)

Do you believe that

confidential data

(such as private

messages) are

transmitted

securely and

privately through

Facebook?

7PLS. These questions

help researchers understand

how security measures

taken by a business on their

website or social media site

impacts users trust in the

business. These questions

are formative and require

the user to assess how

secure they believe the

website is based on various

website features. The

questions are formative but

less subjective as the user is

asked to identify key

elements or IT-features of

the website/ social media

site being used.

Benlian &

Hess (2011)

33

S1

Facebook provides

security assurances,

including tips on

how to protect

against security

threats

34

S2

Facebook provides

features that allow

reporting of

security

vulnerabilities

35

S3

Privacy

Facebook lets

members decide

what information

7PLS. These questions

help researchers understand

how perceived privacy by a

Benlian &

Hess (2011) 36

P1

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will be disclosed to

other members

user impacts users trust in

the business. These

questions are formative and

require the user to assess

how data is handled and

how privacy is kept by the

business. The questions are

formative but less

subjective as the user is

asked to identify key

elements or IT-features of

the website/ social media

site being used.

The Bleach*

Festival provides

prominent links to

the privacy policy

statement

37

P2

Facebook users are

in control of their

data through

changeability of

their profile and

termination of their

account

37

P3

PART 3 – Trust and Trust Propensity Data

Trust belief items

Ability

I believe that the

Bleach* Festival is

competent?

7PLS. These questions

help researchers understand

user perception of a

business’s ability to provide

and assist/support the user.

Brengman &

Karimov

(2012)

39

A1

I believe that the

Bleach* Festival

understands the

market they work

in?

40

A2

I believe that the

Bleach* Festival

knows about the

products/services

they offer?

41

A3

I believe that the

Bleach* Festival

knows how to

provide excellent

service?

42

A4

Benevolence

I believe that that

the Bleach*

Festival is ready

and willing to

assist and support

me?

7PLS. These questions help

researchers understand user

perception of a business’s

benevolence, which is

showing to be, well-

meaning, have good-will to

Brengman &

Karimov

(2012)

43

B1

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I believe that the

Bleach* Festival

has good intentions

towards me?

the customer and

expressing interest in the

user and their intentions. 44

B2

I believe that the

Bleach* Festival

seeks to gain the

goodwill of the

customers?

45

B3

I believe that the

Bleach* Festival

puts

customers’ interests

before their own?

46

B4

I believe that the

Bleach* Festival is

a well-meaning

organisation?

47

B5

Integrity

I believe promises

made by the

Bleach* Festival

are likely to be

reliable?

7PLS. These questions help

researchers understand how

users perceive the integrity

of an online business/ social

media site. Users are asked

to rate the honest, sincerity

and reliability to gauge how

trustworthy a business

maybe Brengman &

Karimov

(2012)

48

I1

I do not doubt the

honesty of the

Bleach* Festival?

49

I2

I believe that the

Bleach* Festival

will keep the

promises they

make?

50

I3

I can count on the

Bleach* Festival to

be sincere

52

I4

7PLS = 7 Point Likert Scale which included the options of: Strongly Agree, Mostly

Agree, Slightly Agree, Neutral, Slightly Disagree, Mostly Disagree and Strongly

Disagree.

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98

Appendix B

Participant Invitation Email

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99

Sent: Monday, September 02, 2013 12:37 PM

Subject: In Facebook We Trust (Or NOT) - Honours Study

Hi,

DO YOU USE FACEBOOK?

DO YOU TRUST ONLINE BUSINESSES?

My name is Philip Aouad, I am conducting research as part of my Honours degree in

Information Technology at Southern Cross University.

The research being conducted aims at investigating which features of a Facebook page

signal trust to users the most. This research involves the completion of an anonymous

online survey, after having viewed a particular community event Facebook page.

Participation is voluntary, and the survey should take approximately 15-20 minutes to

complete.

To access the survey please click on the following link:

https://scuau.qualtrics.com/SE/?SID=SV_eFLi3AXDde1ujM9

This research has been approved by the Human Research Ethics Committee at

Southern Cross University. The approval number is ECN-13-188

For any enquires, questions or feedback please do not hesitate to contact the

researcher or one of the research supervisors.

Phillip Aouad Researcher

Email: [email protected]

Dr. Bill Smart

Supervisor

Email: [email protected]

Dr. Pat Gillett Supervisor

Email: [email protected]

Regards

Phillip Aouad (B.InfTech)

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Appendix C

Participant Invitation Email

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101

Sent: Tuesday, August 20, 2013 7:14 PM

Subject: Bleach Festival Research Request - Phillip Aouad - Southern Cross University,

Honours 2013 Program

Dear <Bleach Festival Contact>,

My name is Phillip Aouad and I am conducting research as part of my Honours degree in

Information Technology at Southern Cross University. My research project is titled “the impact

of Facebook IT-features on user trusting beliefs”.

As you may be aware, Social Media is a valuable communication and advertising method for

community events. Previous research has shown us that while online communities may respond

well to certain online features (such as privacy statements and security seals), there still remains

unanswered questions regarding how these features can impact certain dimensions of trust. To

investigate this issue, I would like to base my research on the Bleach Festival’s Facebook page.

My primary research objective is to identify how the Bleach Festival can engender trust with

members of its Facebook community.

The potential outcome of this research includes increased participation and recognition of the

Bleach* Festival and may lead to further studies in the same area.

The study has been approved by the Human Research Ethics Committee at Southern Cross

University (Approval Number: ECN-13-188).

The purpose of my email is to outline the purpose of my study and to request your consent.

Specifically, I am seeking your approval to use the Bleach* Festival Facebook page as the main

focus for the research.

Attached is a brief research proposal for your perusal which covers important details of the

intended study.

If you would like any further details, have any concerns or queries, or would like to contact

either myself or one of my supervisors at the University, our details are below.

Phillip Aouad

Researcher

Phone: 0422 146 295

Email: [email protected]

Dr. Bill Smart

Primary Supervisor

Phone: 07 5589 3121

Email: [email protected]

Dr. Pat Gillett

Co-Supervisor

Phone: 07 5589 3039

Email: [email protected]

I look forward to your reply.

Regards

Phillip Aouad (B.InfTech)

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Appendix D

Cochran’s Equation (Working Out)

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Cochran’s equation is the following:

Continuous Data Formula:

(t)2*(s)

2

N = -------------------- (d)

2

Where:

N = minimum sample size required

t = a selected alpha level value of 0.025 for each tail, used to determine the confidence

interval of around 95%. As a rule the difference in standard deviations is about 1.96 in

a normal distribution, in other words 95% of the area under a normal curve falls within

approximately 1.96 standard deviations of the mean.

s = estimate of standard deviation in the population

Number of points on the scale (in the case of this study, the likert scale uses 7

points)

= --------------------------------------------

Number of standard deviations

(In this case 6, this is the number of standard deviations that should include almost all,

approximately 98%, of the possible values in the range)

= 7/6 = 1.167

d = acceptable margin of error which is willing to be accepted. Usually based on

previous research or can be chosen by the research. (for example: the acceptable margin

of error will be 0.3; therefore: Number of points on the scale * acceptable margin of

error = 7*0.3=0.21)

Therefore the working:

(t)2*(s)

2

N = -------------------- t=1.96; s=1.167; d=0.3 (d)

2

1.962 * 1.167

2

N = -------------------------- = 118

7*0.032

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Since not all data being collected is continuous data, some data such as gender and age

is considered nominal and requires a different Cochran’s formula.

Nominal Data Formula:

(t)2*(p)(q)

N = -------------------- (d)

2

Where

(p)(q) = variance estimate

(Maximum possible proportion of questions being nominal * 1 - Maximum possible

proportion of questions being nominal)

= (0.5 * (1-0.5))

d = acceptable margin of error which is willing to be accepted. In this case will be 0.05

t = a selected alpha level value of 0.025 = 1.96

(t)2*(p)(q)

N = -------------------- (d)

2

1.962*(0.5*0.5)

N = --------------------------- = 384

0.052

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105

Appendix E

Scatter Plot Matrices

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Appendix F

Exploratory Factor Analysis

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Rotated Component Matrixa

Component

1 2 3 4 5

Q18) U1: The Bleach* Festival Facebook page is simple to navigate. .769

Q19) U2: Facebook provides direct and indirect ways to communicate with others. .691

Q20) U3: Do you find Facebook support features, such as an FAQ or help section, useful? .329 .702

Q21) U4: The ability to group lists of friends allows for enhanced social networking on Facebook. .513 .434

Q22) U5: The layout/design of the Bleach* Festival Facebook page looks professional. .343 .652

Q23) U6: The Bleach* Festival Facebook page seems to have broken links or missing/misleading information that hinders the

social media experience. .687

Q24) T1: It is easy to find information (such as name, address, description and photos) about the Bleach* Festival. .451 .481 .353

Q25) T2: Information about the terms of use are easy to find on Facebook. .497 .500

Q26) T3: Advertisements are clearly separate from the main content on Facebook pages. .567 .343

Q27) T4: The goal and purpose of the Bleach* Festival is clearly stated/easily available via their Facebook page. .306 .407 .489 .322

Q28) T5: The Bleach* Festival replies quickly and in a courteous and professional manner to user questions and comments on

Facebook (this can be judged by the time stamps on existing discussions on the Bleach* Festival Facebook page/conversations). .321 .348 .324 .368

Q29) QAC1: How strongly do you agree that Facebook allows users to rate and assess the interactions and transactions with other

users via rating or reputation mechanisms? .697

Q30) QAC2: The content published on the Bleach* Festival Facebook page is monitored/checked by a third party (such as a

moderator or experts). .402 .374 .575

Q31) QAC3: The Bleach* Festival offers reliable information and no free or teaser offers are present on the Facebook page. .377 .338 .590

Q32) QAC4: Do you believe a reliable feedback mechanism is provided by the Bleach* Festival to report unacceptable behaviour .362 .462 .453

Q33) S1: Do you believe that confidential data (such as private messages) are transmitted securely and privately through

Facebook? .727

Q34) S2: Facebook provides security assurances, including tips on how to protect against security threats. .314 .737

Q35) S3: Facebook provides features that allow reporting of security vulnerabilities. .820

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111

• Trust.

• PrivacySecurity.

• Usability.

• Help.

• OwnerFacebook.

Rotated Component Matrixa (Continued)

Component

1 2 3 4 5

Q36) P1: Facebook lets members decide what information will be disclosed to other members. .766

Q37) P2: The Bleach* Festival provides prominent links to the privacy policy statement. .324 .349 .515

Q38) P3: Facebook users are in control of their data through changeability of their profile and termination o... .768 .338

Q39) A1: I believe that the Bleach* Festival is competent. .727 .358

Q40) A2: I believe that the Bleach* Festival understands the market in which they work. .657 .453 .325

Q41) A3: I believe that the Bleach* Festival knows about the products/services they offer. .617 .515 .339

Q42) A4: I believe that the Bleach* Festival knows how to provide excellent service. .691 .308 .332

Q43) B1: I believe that that the Bleach* Festival is ready and willing to assist and support me. .670 .310 .321

Q44) B2: I believe that the Bleach* Festival has good intentions towards me. .797

Q45) B3: I believe that the Bleach* Festival seeks to gain the goodwill of its customers. .717 .400

Q46) B4: I believe that the Bleach* Festival puts customers’ interests before their own. .662 .381 .365

Q47) B5: I believe that the Bleach* Festival is a well-meaning organisation. .766 .303

Q48) I1: I believe promises made by the Bleach* Festival are likely to be reliable. .754 .387

Q49) I2: I do not doubt the honesty of the Bleach* Festival. .842 .311

Q50) I3: I believe that the Bleach* Festival will keep the promises they make. .815

Q52) I4: I can count on the Bleach* Festival to be sincere. .784 .316

Extraction method: principal component analysis. Rotation method: Varimax with Kaiser normalisation. Rotation converged in seven iterations.