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

Author

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  • 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
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    References listed on IDEAS

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    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.

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