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Online payments strategy: how third-party internet seals of approval and payment provider reputation influence the Millennials’ online transactions

Author

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  • Sofia Cardoso

    (Universidade Nova de Lisboa)

  • Luis F. Martinez

    (Universidade Nova de Lisboa)

Abstract

With the recent increase in online purchases, organizations have been able to improve their capacity to collect, store and profit from personal and financial data gathering. Online purchases occur in an environment characterized by higher risk levels surrounding the transaction. Several payment strategies can be applied in order to mitigate the consumers’ perceived risk and increase trust levels. The present study intends to understand how the presence of internet seals of approval and the reputation of the payment provider impact consumer trust and online payment perceived risk. Four randomized experimental setups were used to manipulate the independent variables, on a sample size of 324 valid responses. The majority of participants were between 18 and 35 years old. The study results demonstrate that new online vendors could mitigate these variables by investing in a payment strategy that combines the presence of internet seals of approval logos together with the presence of payment providers with low reputation.

Suggested Citation

  • Sofia Cardoso & Luis F. Martinez, 2019. "Online payments strategy: how third-party internet seals of approval and payment provider reputation influence the Millennials’ online transactions," Electronic Commerce Research, Springer, vol. 19(1), pages 189-209, March.
    • Handle: RePEc:spr:elcore:v:19:y:2019:i:1:d:10.1007_s10660-018-9295-x
    DOI: 10.1007/s10660-018-9295-x
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    References listed on IDEAS

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    1. Benlian, Alexander & Titah, R. & Hess, Thomas, 2012. "Differential Effects of Provider and User Recommendations in e-Commerce Transactions: An Experimental Study," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57946, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    3. Benlian, Alexander & Titah, R. & Hess, Thomas, 2012. "Differential Effects of Provider and User Recommendations in e-Commerce Transactions: An Experimental Study," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 59346, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    5. Benlian, Alexander & Titah, R. & Hess, Thomas, 2012. "Differential Effects of Provider and User Recommendations in e-Commerce Transactions: An Experimental Study," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65605, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    Cited by:

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