An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

El'fred Boo
Nanyang Technological University

Kin Yew Low
Nanyang Technological University

Xin Ming Soh
Deutsche Bank

Miao Ling Lim
Deutsche Bank

Abstract: As periodic system examination is a critical feature for web assurance but not for web insurance, the latter is potentially a cost effective alternative to web assurance. What we do not know, however, is whether web insurance would inspire consumer confidence. This paper compares the effects of web assurance and web insurance on consumers’ online purchasing intention and confidence. Results in a controlled setting indicate that both web assurance and web insurance significantly increase consumers’ purchasing intention and confidence. The increase in purchasing intention and confidence are not significantly different between web assurance and web insurance treatment groups. Results further indicate that high audit knowledge consumers prefer web insurance to be provided by insurance companies while low audit knowledge consumers prefer web insurance to be provided by CPA firms. Our findings suggest that web insurance could be a promising alternative to web assurance.

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