Trust, Social Presence and Customer Loyalty in Social Virtual Worlds

Abstract

Social virtual worlds (SVWs) have drawn substantial attention in business and academia. This research focuses on how trust affects customer loyalty in the SVW setting. Specifically, this study pinpoints how trust in SVW staff and other users influences the continuous use and purchase behaviour in SVWs. Additionally, we examine the influence of social presence on the two aspects trust and customer loyalty. The research model is tested with PLS using a sample of 2111 Finnish Habbo users. The two facets of trust are important antecedents on customer loyalty, yet differing in their effect. Social presence is a strong determinant of trust but also a direct antecedent of customer loyalty. Together, trust and social presence account for a considerable amount of variance in continuous use and purchase intention.

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