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Disentangling the relationship between trust, online buying, and customer satisfaction: a three-way interaction model

Author

Listed:
  • Jeeva Venkatakrishnan

    (Affiliated to Bharathidasan University)

  • Ravikumar Alagiriswamy

    (Affiliated to Bharathidasan University)

  • Satyanarayana Parayitam

    (University of Massachusetts Dartmouth)

Abstract

This research investigates the relationship between customers' trust in e-retailers and online buying behavior. First, a multi-layered conceptual model is developed using the e-service quality dimensions to understand consumers' online behavior in the context of a developing country, India. Data were collected from 588 respondents from four metropolitan cities in southern India during the ‘new normal’ post-pandemic period. After checking the psychometric properties of the survey instrument, using the LISREL package of structural equation modeling, the hypothesized relationships were tested using Hayes's PROCESS macros. The results indicate that the credibility and responsiveness of e-retailers are significant predictors of trust. The findings also support the positive association of trust with online buying behavior and customer satisfaction. Most importantly, price discounts and offers (PDO) (first moderator) and assurance (second moderator) interact with trust to positively influence online buying behavior. The study also empirically found that the personalization (first moderator) and accessibility (second moderator) of e-retailers interact with online buying behavior to enhance customer satisfaction. The three-way interaction effects offer novelty to the conceptual model, and findings significantly contribute to the literature on online buying behavior. As against the earlier studies that focused on all the service quality dimensions together influencing customer satisfaction, this study offers new insights into unfolding the dimensions to see their effects on trust and customer satisfaction. The results also have several recommendations for e-retailers interested in retaining and attracting customers to buy products and services online.

Suggested Citation

  • Jeeva Venkatakrishnan & Ravikumar Alagiriswamy & Satyanarayana Parayitam, 2024. "Disentangling the relationship between trust, online buying, and customer satisfaction: a three-way interaction model," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(4), pages 806-828, December.
    • Handle: RePEc:pal:jmarka:v:12:y:2024:i:4:d:10.1057_s41270-023-00228-4
    DOI: 10.1057/s41270-023-00228-4
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