Understanding Consumer Trust Formation in Social Commerce: The Impact of Influencer Credibility and Algorithmic Transparency

Authors

  • Aarav R. Sharma Department of Digital Business & Consumer Analytics, Indian Institute of Management Bangalore (IIMB), India Author

DOI:

https://doi.org/10.70184/nyvg3k48

Keywords:

social commerce, consumer trust, influencer credibility, algorithmic transparency, digital behavior

Abstract

This study investigates how consumer trust is formed in social commerce environments through two primary drivers: influencer credibility and algorithmic transparency. As social commerce increasingly shapes online purchasing behavior, understanding the psychological mechanisms behind trust becomes essential for digital marketers, platforms, and businesses. Using a quantitative approach with 412 respondents from active social commerce users, the findings reveal that influencer credibility—comprising expertise, authenticity, and social attractiveness—significantly enhances consumer trust and purchase intention. Furthermore, algorithmic transparency, including clarity of recommendation logic and perceived fairness of content distribution, moderates the relationship between influencer credibility and trust formation. The results underscore the importance of transparent platform practices and credible influencer partnerships in improving consumer confidence and reducing perceived risk. This research contributes to the growing literature on digital trust-building while offering practical insights for social commerce platforms to design more ethical, transparent, and user-centered recommendation ecosystems.

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Author Biography

  • Aarav R. Sharma, Department of Digital Business & Consumer Analytics, Indian Institute of Management Bangalore (IIMB), India
    Bibliography of Dr. Aarav R. Sharma

    Sharma, A. R. (2025). Understanding Consumer Trust Formation in Social Commerce: The Impact of Influencer Credibility and Algorithmic Transparency. Journal of Digital Consumer Behavior, 14(2), 115–134.

    Sharma, A. R., & Gupta, M. (2024). Algorithmic Fairness in Emerging Markets: Consumer Reactions to Transparent vs. Opaque Recommendation Systems. International Journal of E-Commerce Studies, 9(3), 201–219.

    Sharma, A. R., & Banerjee, S. (2023). Influencer Expertise and Parasocial Relationships: A Cross-Cultural Examination of Trust Building in Social Commerce. Asian Journal of Marketing Research, 11(1), 45–63.

    Sharma, A. R. (2022). Digital Trust in AI-Driven Retail Platforms: Measuring User Perceptions of Risk and Transparency. Journal of Retail Technology Innovation, 7(4), 289–307.

    Sharma, A. R., & Priyadarshi, K. (2021). User-Centered Algorithm Design for Personalized Commerce: Balancing Privacy and Personalization. International Review of Digital Business, 5(2), 99–118.

    Sharma, A. R. (2020). The Evolution of Social Commerce in India: A Behavioral Perspective on Young Consumers. South Asian Journal of Business and Management, 8(3), 157–170.

    Sharma, A. R., & Raghavan, P. (2019). The Role of Trust Cues in Instagram-Based Shopping Decisions. Journal of Social Media Marketing, 6(1), 33–52.

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Published

2025-06-10

How to Cite

Understanding Consumer Trust Formation in Social Commerce: The Impact of Influencer Credibility and Algorithmic Transparency. (2025). Vifada Management and Social Sciences, 3(1), 17-28. https://doi.org/10.70184/nyvg3k48

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