IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2024-06-12.html
   My bibliography  Save this article

The Effect of Risk Perception and Online Trust on Purchase Intention in E-Commerce

Author

Listed:
  • Muhamammad Ikhlash

    (Department of Business and Management, Politeknik Negeri Batam, Batam, Indonesia)

  • Khori Rahma Linda

    (Department of Business and Management, Politeknik Negeri Batam, Batam, Indonesia)

Abstract

Research on the factors influencing online trust in e-commerce has been limited in recent years. Therefore, this study is a rigorous investigation that aims to first understand the main factors that affect online trust and, second, to find out the impact of online trust on risk perception, attitude, and purchase intention. The study applies a quantitative approach method and collects primary data by filling out questionnaires from 100 respondents who have experience shopping through e-commerce applications. The sampling technique uses the purposive sampling method, ensuring a representative sample. Data collection was carried out by distributing questionnaires, and then the data was processed using SmartPLS version 4.0 to test instruments and hypotheses. The findings of this study, based on a robust methodology, show that perceived size has a significant positive effect on online trust, perceived reputation has a significant positive effect on online trust, online trust has a significant positive effect on risk perception, online trust has a significant positive effect on attitude, Risk perception has a significant positive effect on attitude, risk perception does not affect purchase intention, attitude has a significant positive effect on purchase intention, and online trust does not affect purchase intention.

Suggested Citation

  • Muhamammad Ikhlash & Khori Rahma Linda, 2024. "The Effect of Risk Perception and Online Trust on Purchase Intention in E-Commerce," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 109-118, October.
    • Handle: RePEc:eco:journ3:2024-06-12
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/irmm/article/download/17111/8280
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/irmm/article/view/17111
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Teo, Thompson S.H. & Liu, Jing, 2007. "Consumer trust in e-commerce in the United States, Singapore and China," Omega, Elsevier, vol. 35(1), pages 22-38, February.
    2. Gefen, David & Straub, Detmar W., 2004. "Consumer trust in B2C e-Commerce and the importance of social presence: experiments in e-Products and e-Services," Omega, Elsevier, vol. 32(6), pages 407-424, December.
    3. Marzieh Zendehdel & Laily Hj Paim & Syuhaily Bint Osman, 2015. "Students’ online purchasing behavior in Malaysia: Understanding online shopping attitude," Cogent Business & Management, Taylor & Francis Journals, vol. 2(1), pages 1078428-107, December.
    4. Anggraeni Permatasari & Mayci Kartikowati, 2018. "The influence of website design on customer online trust and perceived risk towards purchase intention: a case of O2O commerce in Indonesia," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 21(1), pages 74-86.
    5. Joseph F. Hair & Christian M. Ringle & Siegfried P. Gudergan & Andreas Fischer & Christian Nitzl & Con Menictas, 2019. "Partial least squares structural equation modeling-based discrete choice modeling: an illustration in modeling retailer choice," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 115-142, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rösner, Anja & Haucap, Justus & Heimeshoff, Ulrich, 2020. "The impact of consumer protection in the digital age: Evidence from the European Union," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    2. Rajković, Borislav & Đurić, Ivan & Zarić, Vlade & Glauben, Thomas, 2021. "Gaining trust in the digital age: The potential of social media for increasing the competitiveness of small and medium enterprises," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(4).
    3. Hallikainen, Heli & Laukkanen, Tommi, 2018. "National culture and consumer trust in e-commerce," International Journal of Information Management, Elsevier, vol. 38(1), pages 97-106.
    4. Alisa Frik & Luigi Mittone, 2016. "Factors Influencing the Perceived Websites' Privacy Trustworthiness and Users' Purchase Intentions," CEEL Working Papers 1609, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    5. Dawei Liu & Xiaohong Guo, 2017. "Exploring gender differences in acceptance of mobile computing devices among college students," Information Systems and e-Business Management, Springer, vol. 15(1), pages 197-223, February.
    6. Mattison Thompson, Frauke & Tuzovic, Sven & Braun, Corina, 2019. "Trustmarks: Strategies for exploiting their full potential in e-commerce," Business Horizons, Elsevier, vol. 62(2), pages 237-247.
    7. Kim, Sanghyun & Park, Hyunsun, 2013. "Effects of various characteristics of social commerce (s-commerce) on consumers’ trust and trust performance," International Journal of Information Management, Elsevier, vol. 33(2), pages 318-332.
    8. Li, Hao & Jiang, Jinhu & Wu, Mingjie, 2014. "The effects of trust assurances on consumers’ initial online trust: A two-stage decision-making process perspective," International Journal of Information Management, Elsevier, vol. 34(3), pages 395-405.
    9. Wang, Xu & Baesens, Bart & Zhu, Zhen, 2019. "On the optimal marketing aggressiveness level of C2C sellers in social media: Evidence from china," Omega, Elsevier, vol. 85(C), pages 83-93.
    10. Gefen, David & Reychav, Iris, 2014. "Why trustworthiness in an IT vendor is important even after the vendor left: IT is accepting the message and not just the messenger that is important," Omega, Elsevier, vol. 44(C), pages 111-125.
    11. Jinsoo Park & Hamirahanim Abdul Rahman & Jihae Suh & Hazami Hussin, 2019. "A Study of Integrative Bargaining Model with Argumentation-Based Negotiation," Sustainability, MDPI, vol. 11(23), pages 1-21, December.
    12. Rybak Anna, 2018. "Consumer Trust in E-Commerce: The Case of Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 18(2), pages 59-71, December.
    13. Yu Wang & Shanyong Wang & Jing Wang & Jiuchang Wei & Chenglin Wang, 2020. "An empirical study of consumers’ intention to use ride-sharing services: using an extended technology acceptance model," Transportation, Springer, vol. 47(1), pages 397-415, February.
    14. Mäntymäki, Matti & Salo, Jari, 2013. "Purchasing behavior in social virtual worlds: An examination of Habbo Hotel," International Journal of Information Management, Elsevier, vol. 33(2), pages 282-290.
    15. Chen, Xia & Miraz, Mahadi Hasan & Gazi, Md. Abu Issa & Rahaman, Md. Atikur & Habib, Md. Mamun & Hossain, Abu Ishaque, 2022. "Factors affecting cryptocurrency adoption in digital business transactions: The mediating role of customer satisfaction," Technology in Society, Elsevier, vol. 70(C).
    16. Salgado, Stéphane & Hemonnet-Goujot, Aurelie & Henard, David H. & de Barnier, Virginie, 2020. "The dynamics of innovation contest experience: An integrated framework from the customer’s perspective," Journal of Business Research, Elsevier, vol. 117(C), pages 29-43.
    17. Leong, Lai-Ying & Hew, Teck-Soon & Ooi, Keng-Boon & Chong, Alain Yee-Loong, 2020. "Predicting the antecedents of trust in social commerce – A hybrid structural equation modeling with neural network approach," Journal of Business Research, Elsevier, vol. 110(C), pages 24-40.
    18. Osama Sohaib & Kyeong Kang & Mohammad Nurunnabi, 2018. "Gender-Based iTrust in E-Commerce: The Moderating Role of Cognitive Innovativeness," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    19. Muhammad Zubair Alam & Shazia Kousar & Muhammad Rizwan Ullah & Amber Pervaiz, 2022. "How creative destruction functions in corporate entrepreneurial process: an empirical investigation of Schumpeterian concept in engineering firm settings in Pakistan," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-15, December.
    20. Fernanda Leão Ramos & Jorge Brantes Ferreira & Angilberto Sabino de Freitas & Juliana Werneck Rodrigues, 2018. "The Effect of Trust in the Intention to Use m-banking," Brazilian Business Review, Fucape Business School, vol. 15(2), pages 175-191, March.

    More about this item

    Keywords

    Perceived Size; Perceived Reputation; Online Trust; Risk Perception; Attitude; Purchase Intention;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2024-06-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.