Initial trust and online buyer behaviour

Abstract

Purpose - Online trust is one of the key obstacles to vendors succeeding on the internet medium; a lack of trust is likely to discourage online consumers from participating in e-commerce. This research aims to investigate how online consumers develop their initial trust and purchase intentions. The research in conducted in the context of Taiwanese online bookstores. Design/methodology/ approach - The research examines consumers' online initial trust by using four major categories of determinants: perceived technology, perceived risk, company competency, and trust propensity. It also investigates the impacts of both online initial trust and familiarity with online purchasing on purchase intention. The research model is statistically tested using the web sites of four online bookstores in Taiwan. The web site selected by each respondent is unfamiliar. Findings - It is found that perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise are the important antecedents to online initial trust. It is also discovered that different levels of trust propensity moderate perceptions toward the web site and online with respect to online initial trust, including perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise. Both online initial trust and familiarity with online purchasing have a positive impact on purchase intention. Originality/value - The research provides insight into the development of online initial trust by consumers, and the relationships between online initial trust and purchase intention. The research model was created and then tested in the context of online bookshops in Taiwan

The Impact of Cost, Customer Experience, Ease of Use, and Trust towards Adoption of Online Banking

“…Consistent with prior studies (e.g., Baraghani, 2007;Chen & Barnes, 2007;Chong, Oii, Lin, & Tan, 2010;Dauda et al, 2007;Gefen, 2000;Lee et al, 2005;McKnight & Chervany, 2002), the findings in this study show that trust will influence the adoption of online banking in Selangor, Malaysia. Chong et al (2010) stated that people from developing countries tend to be more cautious when using online banking services as it involves money and people are used to conduct monetary transaction in-person.…”

“…They described that the trust of the consumers towards e-commerce or e-vendor came from one's trusting belief (i.e., one's perception or belief that it is beneficial for them related to their personality traits) and trusting intentions (i.e., one's willingness to depend on others to do something on behalf such as paying through credit card online), which can be explained in the three trust concepts -interpersonal trust (e.g., trust the e-vendor), institutional trust (e.g., trust the website), and dispositional trust (e.g., trust other people). Due to the higher degree of uncertainty in the online environment, trust is emphasized even more (Chen & Barnes, 2007). Thus, trust is a key factor for bank to improve its services because it can be the key determinants for customers to use online banking services.…”

Brand Personality Moderating Effect on Relationship between Website Quality and Online Trust: Malaysian Online Environment Context

“…Thus, basis of trust should be nurtured with consumers as it is precursor to consumer purchase intentions (Van der Heijden et al, 2003). As indicated in previous research, customer trust is essential to positively induce customer purchase intentions (Schlosser et al, 2006;Chen & Barnes, 2007). Hence, this study has developed the following hypotheses:…”

“…A lack of trust would discourage and dissuade online consumers from doing transactions through websites (Chen & Barnes, 2007). Thus, it is imperative to enhance and nurture online trust as it lends credibility to online transactions and could be instrumental to the success or failure of online retailers and vendors (Karimov et al, 2011) In summary, it could be said that the growth of internet has generated an increasing interest in exploring the concept of trust (Sillence et al, 2006).…”

“…This study delves on the aspect of trust as a psychological state of mind, which has been identified as a critical factor that impacts customers' decisions on online purchase considerations (Gefen, 2000;Chen & Barnes, 2007). In exploring the motives in an online environment, intention theories such as the theory of reasoned action, theory of planned behavior, stimulus organization and response model, technology acceptance model (TAM) have been examined (Muthitcharoen et al, 2011).…”