IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v5y2016i6p01-11.html
   My bibliography  Save this article

Direct and Indirect Effects of Perceived Risk and Website Reputation on Purchase Intention

Author

Listed:
  • Chatpong Tangmanee

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

  • Chayanin Rawsena

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

Abstract

Success in electronic commerce relies greatly on customer trust. While other studies have examined various factors affecting online customer trust, few have investigated the joint effects of perceived risk and website reputation on purchase intention using online trust as a mediator. The current study attempts to fill this gap. 300 online shoppers participated via web-based questionnaires using a quota sampling technique. Based on confirmatory factor analysis (CFA), our measurements were found to be valid and reliable. Using structural equation modeling (SEM), we confirmed significant direct effects of perceived risk and website reputation on customer purchase intentions. Furthermore, both factors had significant indirect effects on purchase intention through online trust. In addition to extending theoretical insight into online trust as a mediator for the effects of perceived risk and website reputation on purchase intention, web-based vendors may adopt the findings to adjust their online stores to raise customer trust and ultimately increase the possibility of online purchases. Key Words: Online Trust, Perceived Risk, Website Reputation, Purchase Intention

Suggested Citation

  • Chatpong Tangmanee & Chayanin Rawsena, 2016. "Direct and Indirect Effects of Perceived Risk and Website Reputation on Purchase Intention," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 5(6), pages 01-11, October.
    • Handle: RePEc:rbs:ijbrss:v:5:y:2016:i:6:p:01-11
    as

    Download full text from publisher

    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/90/92
    Download Restriction: no
    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/90
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eroglu, Sevgin A. & Machleit, Karen A. & Davis, Lenita M., 2001. "Atmospheric qualities of online retailing: A conceptual model and implications," Journal of Business Research, Elsevier, vol. 54(2), pages 177-184, November.
    2. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    3. Gary Bente & Thomas Dratsch & Kai Kaspar & Tabea Häßler & Oliver Bungard & Ahmad Al-Issa, 2014. "Cultures of Trust: Effects of Avatar Faces and Reputation Scores on German and Arab Players in an Online Trust-Game," PLOS ONE, Public Library of Science, vol. 9(6), pages 1-7, June.
    4. Urban, Glen L. & Amyx, Cinda & Lorenzon, Antonio, 2009. "Online Trust: State of the Art, New Frontiers, and Research Potential," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 179-190.
    5. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    6. Kotha, Suresh & Rajgopal, Shivaram & Rindova, Violina, 2001. "Reputation Building and Performance: An Empirical Analysis of the Top-50 Pure Internet Firms," European Management Journal, Elsevier, vol. 19(6), pages 571-586, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shing H. Doong, 2022. "Comparing the effect of interactivity and reputation on purchase intention in live commerce: a serial mediation study," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(4), pages 329-340, December.
    2. Mary Rani Thomas & Kavya .V. & Mary Monica, 2018. "Online Website Cues Influencing the Purchase Intention of Generation Z Mediated by Trust," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(1), pages 13-23, January.
    3. Jurry Hatammimi & Sintyas Dita Purnama, 2022. "Factors affecting prospective entrepreneurs to utilize e-marketplace:A study of business school students in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 01-11, January.
    4. Sungjoon Yoo & Dong-Joo Lee & Louis Atamja, 2023. "Influence of Online Information Quality and Website Design on User Shopping Loyalty in the Context of E-Commerce Shopping Malls in Korea," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    5. Vikas Chauhan & Rohit Joshi & Vipin Choudhary, 2024. "Understanding intention to adopt telematics-based automobile insurance in an emerging economy: a mixed-method approach," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(3), pages 1017-1036, September.

    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. Malhotra, Neeru & Sahadev, Sunil & Purani, Keyoor, 2017. "Psychological contract violation and customer intention to reuse online retailers: Exploring mediating and moderating mechanisms," Journal of Business Research, Elsevier, vol. 75(C), pages 17-28.
    2. Beke, Frank T. & Eggers, Felix & Verhoef, Peter C. & Wieringa, Jaap E., 2022. "Consumers’ privacy calculus: The PRICAL index development and validation," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 20-41.
    3. Mary Rani Thomas & Kavya .V. & Mary Monica, 2018. "Online Website Cues Influencing the Purchase Intention of Generation Z Mediated by Trust," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(1), pages 13-23, January.
    4. Martin, Kirsten, 2018. "The penalty for privacy violations: How privacy violations impact trust online," Journal of Business Research, Elsevier, vol. 82(C), pages 103-116.
    5. Zerbini, Cristina & Bijmolt, Tammo H.A. & Maestripieri, Silvia & Luceri, Beatrice, 2022. "Drivers of consumer adoption of e-Commerce: A meta-analysis," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1186-1208.
    6. Sullivan, Yulia W. & Kim, Dan J., 2018. "Assessing the effects of consumers’ product evaluations and trust on repurchase intention in e-commerce environments," International Journal of Information Management, Elsevier, vol. 39(C), pages 199-219.
    7. Yoon, Hyun Shik & Occeña, Luis G., 2015. "Influencing factors of trust in consumer-to-consumer electronic commerce with gender and age," International Journal of Information Management, Elsevier, vol. 35(3), pages 352-363.
    8. Daniel A. Sanchez-Loor & Wei-Shiun Chang, 2023. "Experimental study of the effects of structural assurance, personal experiences, and product reviews on repurchase behavior in e-commerce platforms," Electronic Commerce Research, Springer, vol. 23(3), pages 1971-2010, September.
    9. Detmar W. Straub & Donna L. Hoffman & Bruce W. Weber & Charles Steinfield, 2002. "Toward New Metrics for Net-Enhanced Organizations," Information Systems Research, INFORMS, vol. 13(3), pages 227-238, September.
    10. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    11. Nadeem, Waqar & Andreini, Daniela & Salo, Jari & Laukkanen, Tommi, 2015. "Engaging consumers online through websites and social media: A gender study of Italian Generation Y clothing consumers," International Journal of Information Management, Elsevier, vol. 35(4), pages 432-442.
    12. Steven S. Lui & Zhijing Zhu & Jinjing Liu, 2023. "Success of Crowdfunding: A Trustworthiness Perspective," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 681-706, June.
    13. Huan-Ming Chuang & Chen-Chia Chuang, 2023. "The Effects of Experienced Utility and PEEIM on the Purchase Intention of Cross-Border E-Commerce," Sustainability, MDPI, vol. 15(21), pages 1-19, November.
    14. Ives Chacourre Wangninanon Gogan & Ziqiong Zhang & Elizabeth Damian Matemba, 2018. "Impacts of Gratifications on Consumers’ Emotions and Continuance Use Intention: An Empirical Study of Weibo in China," Sustainability, MDPI, vol. 10(9), pages 1-20, September.
    15. Bleier, Alexander & Eisenbeiss, Maik, 2015. "The Importance of Trust for Personalized Online Advertising," Journal of Retailing, Elsevier, vol. 91(3), pages 390-409.
    16. Cachero-Martínez, Silvia & Vázquez-Casielles, Rodolfo, 2021. "Building consumer loyalty through e-shopping experiences: The mediating role of emotions," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    17. Kim, Yeolib & Peterson, Robert A., 2017. "A Meta-analysis of Online Trust Relationships in E-commerce," Journal of Interactive Marketing, Elsevier, vol. 38(C), pages 44-54.
    18. Ferreira, Daniel Brantes & Giovannini, Cristiane & Gromova, Elizaveta & da Rocha Schmidt, Gustavo, 2022. "Arbitration chambers and trust in technology provider: Impacts of trust in technology intermediated dispute resolution proceedings," Technology in Society, Elsevier, vol. 68(C).
    19. Joseph A. Cazier & Benjamin B. M. Shao & Robert D. St. Louis, 2007. "Sharing information and building trust through value congruence," Information Systems Frontiers, Springer, vol. 9(5), pages 515-529, November.
    20. Cheng, Junjun & Chen, Bo & Huang, Zihang, 2023. "Collective-based ad transparency in targeted hotel advertising: Consumers’ regulatory focus underlying the crowd safety effect," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).

    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:rbs:ijbrss:v:5:y:2016:i:6:p:01-11. 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: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    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.