DIGITAL TRUST AS A FACTOR IN CONSUMER CHOICE AND THE ECONOMIC PERFORMANCE OF E-COMMERCE

Abstract

This article examines digital trust as a comprehensive factor influencing consumer choice and the economic performance of e-commerce. The aim of the study is to identify the economic nature of digital trust, its structural components, and psychological determinants, as well as to systematize the channels through which it influences buyer behavior and the performance of e-commerce enterprises. The study employs methods of analysis, synthesis, generalization, systematization, and comparison, as well as a structural-functional approach, which made it possible to integrate the behavioral, technological, and economic dimensions of the phenomenon. Digital trust is defined as the consumer’s established expectation of competent, predictable, and ethical behavior on the part of the seller, the platform, and other participants in a digital transaction, provided that mechanisms exist to mitigate its negative consequences.The institutional, technological, reputational, and experiential components of digital trust are identified. It has been established that the formation of digital trust depends on perceived risk, the security of payments and personal data, transparency of information, the reliability of online reviews, the quality of digital services, the timeliness of delivery, and prior experience with the service. It is argued that digital trust reduces information asymmetry, consumer costs associated with searching for and verifying information, and the subjective cost of concluding a digital transaction. Its impact on conversion rates, repeat purchase frequency, average order value, customer acquisition costs, and customer lifetime value has been systematized. It has been demonstrated that the economic effect of digital trust is not limited to the initial purchase but manifests itself in building loyalty, stabilizing demand, reducing price sensitivity, and strengthening long-term relationships between the company and the consumer.The paper proposes integrating digital trust management into a company’s marketing, pricing, information, logistics, and customer policies. It identifies the feasibility of combining technological, informational, reputational, and service-based mechanisms to enhance digital trust, standardize digital services, verify sellers and reviews, and so on.