IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v31y2021i4d10.1007_s12525-020-00436-1.html
   My bibliography  Save this article

Examining the impact of intangible product features and e-commerce institutional mechanics on consumer trust and repurchase intention

Author

Listed:
  • Urvashi Tandon

    (Chitkara University)

  • Amit Mittal

    (Chitkara University)

  • Sridhar Manohar

    (Amity University)

Abstract

The present study examines virtual try-on technology (VTO), return policies, pay-on-delivery (POD) mode of payment, vendor-specific guarantees, and free shipping policy of online retailers as antecedents of trust. The study also examines the role of perceived effectiveness of e-commerce institutional mechanisms (PEEIM) as a moderator between repurchase intention and trust. Data were collected through an online survey. The link to the questionnaire for the online survey was shared on different social media platforms and social networking sites. A total of 614 responses were considered for the study. Results revealed that return policies, POD mode of payment, free shipping policy, and VTO technology emerged significant predictors of trust. Surprisingly, vendor-specific guarantee had a negative relationship with trust. Trust, in turn, influenced repurchase intention. Considering the trust and survey responses, the results confirmed that PEEIM negatively moderates the relationship between trust and repurchase intention. This study contributes to the literature by empirically validating the impact of return policies, VTO technology, POD mode of payment, free shipping policies, and vendor-specific guarantees on trust. Most of these constructs have been analyzed as solitary constructs. In this study, the impact of these constructs is measured collectively, thereby indicating their importance as compared with other policies implemented by an online retailer. This is a first-of-its-kind study that validates the policies of online retailers in the Indian context.

Suggested Citation

  • Urvashi Tandon & Amit Mittal & Sridhar Manohar, 2021. "Examining the impact of intangible product features and e-commerce institutional mechanics on consumer trust and repurchase intention," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 945-964, December.
    • Handle: RePEc:spr:elmark:v:31:y:2021:i:4:d:10.1007_s12525-020-00436-1
    DOI: 10.1007/s12525-020-00436-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-020-00436-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-020-00436-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rajeev K. Tyagi, 2004. "Technological Advances, Transaction Costs, and Consumer Welfare," Marketing Science, INFORMS, vol. 23(3), pages 335-344, January.
    2. 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.
    3. Huang, Wen-Hsien & Cheng, Yi-Ching, 2015. "Threshold free shipping policies for internet shoppers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 193-203.
    4. Oghazi, Pejvak & Karlsson, Stefan & Hellström, Daniel & Hjort, Klas, 2018. "Online purchase return policy leniency and purchase decision: Mediating role of consumer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 190-200.
    5. Nripendra P. Rana & Yogesh K. Dwivedi & Banita Lal & Michael D. Williams & Marc Clement, 2017. "Citizens’ adoption of an electronic government system: towards a unified view," Information Systems Frontiers, Springer, vol. 19(3), pages 549-568, June.
    6. 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.
    7. Mukhopadhyay, Samar K. & Setaputra, Robert, 2007. "A dynamic model for optimal design quality and return policies," European Journal of Operational Research, Elsevier, vol. 180(3), pages 1144-1154, August.
    8. Janakiraman, Narayan & Syrdal, Holly A. & Freling, Ryan, 2016. "The Effect of Return Policy Leniency on Consumer Purchase and Return Decisions: A Meta-analytic Review," Journal of Retailing, Elsevier, vol. 92(2), pages 226-235.
    9. Yogesh K. Dwivedi & Nripendra P. Rana & Anand Jeyaraj & Marc Clement & Michael D. Williams, 2019. "Re-examining the Unified Theory of Acceptance and Use of Technology (UTAUT): Towards a Revised Theoretical Model," Information Systems Frontiers, Springer, vol. 21(3), pages 719-734, June.
    10. Mauricio M. Palmeira & Joydeep Srivastava, 2013. "Free Offer ≠ Cheap Product: A Selective Accessibility Account on the Valuation of Free Offers," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(4), pages 644-656.
    11. Zhang, Tao & Li, Gang & Cheng, T.C.E. & Lai, Kin Keung, 2017. "Welfare economics of review information: Implications for the online selling platform owner," International Journal of Production Economics, Elsevier, vol. 184(C), pages 69-79.
    12. Pei, Zhi & Paswan, Audhesh & Yan, Ruiliang, 2014. "E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 249-257.
    13. Boone, Tonya & Ganeshan, Ram, 2013. "Exploratory analysis of free shipping policies of online retailers," International Journal of Production Economics, Elsevier, vol. 143(2), pages 627-632.
    14. Shao, Xiao-Feng, 2017. "Free or calculated shipping: Impact of delivery cost on supply chains moving to online retailing," International Journal of Production Economics, Elsevier, vol. 191(C), pages 267-277.
    15. V. Padmanabhan & I. P. L. Png, 1997. "Manufacturer's Return Policies and Retail Competition," Marketing Science, INFORMS, vol. 16(1), pages 81-94.
    16. Greatorex, M. & Mitchell, V. W., 1994. "Modelling consumer risk reduction preferences from perceived loss data," Journal of Economic Psychology, Elsevier, vol. 15(4), pages 669-685, December.
    17. Beck, Marie & Crié, Dominique, 2018. "I virtually try it … I want it ! Virtual Fitting Room: A tool to increase on-line and off-line exploratory behavior, patronage and purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 279-286.
    18. Nripendra P. Rana & Yogesh K. Dwivedi & Banita Lal & Michael D. Williams & Marc Clement, 0. "Citizens’ adoption of an electronic government system: towards a unified view," Information Systems Frontiers, Springer, vol. 0, pages 1-20.
    19. Bonifield, Carolyn & Cole, Catherine & Schultz, Randall L., 2010. "Product returns on the Internet: A case of mixed signals?," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1058-1065, September.
    20. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    21. Mehmet Sekip Altug & Tolga Aydinliyim, 2016. "Counteracting Strategic Purchase Deferrals: The Impact of Online Retailers’ Return Policy Decisions," Manufacturing & Service Operations Management, INFORMS, vol. 18(3), pages 376-392, July.
    22. Paul A. Pavlou & Angelika Dimoka, 2006. "The Nature and Role of Feedback Text Comments in Online Marketplaces: Implications for Trust Building, Price Premiums, and Seller Differentiation," Information Systems Research, INFORMS, vol. 17(4), pages 392-414, December.
    23. Bagozzi, Richard P & Yi, Youjae, 1991. "Multitrait-Multimethod Matrices in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 426-439, March.
    24. Li, Yongjian & Xu, Lei & Li, Dahui, 2013. "Examining relationships between the return policy, product quality, and pricing strategy in online direct selling," International Journal of Production Economics, Elsevier, vol. 144(2), pages 451-460.
    25. Becerril-Arreola, Rafael & Leng, Mingming & Parlar, Mahmut, 2013. "Online retailers’ promotional pricing, free-shipping threshold, and inventory decisions: A simulation-based analysis," European Journal of Operational Research, Elsevier, vol. 230(2), pages 272-283.
    26. Frédérique Six, 2007. "Building interpersonal trust within organizations: a relational signalling perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(3), pages 285-309, September.
    27. Clemes, Michael D. & Gan, Christopher & Zhang, Junli, 2014. "An empirical analysis of online shopping adoption in Beijing, China," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 364-375.
    28. Michael Lewis & Vishal Singh & Scott Fay, 2006. "An Empirical Study of the Impact of Nonlinear Shipping and Handling Fees on Purchase Incidence and Expenditure Decisions," Marketing Science, INFORMS, vol. 25(1), pages 51-64, 01-02.
    29. Paul A. Pavlou & David Gefen, 2004. "Building Effective Online Marketplaces with Institution-Based Trust," Information Systems Research, INFORMS, vol. 15(1), pages 37-59, March.
    30. Suresh Kandulapati & Raja Shekhar Bellamkonda, 2014. "E-service quality: a study of online shoppers in India," American Journal of Business, Emerald Group Publishing Limited, vol. 29(2), pages 178-188, May.
    31. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    32. Frederique Six & Bart Nooteboom & Adriaan Hoogendoorn, 2010. "Actions that Build Interpersonal Trust: A Relational Signalling Perspective," Review of Social Economy, Taylor & Francis Journals, vol. 68(3), pages 285-315.
    33. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    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. Rainer Alt, 2021. "Electronic Markets on platform complexity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 737-742, December.

    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. Oghazi, Pejvak & Karlsson, Stefan & Hellström, Daniel & Hjort, Klas, 2018. "Online purchase return policy leniency and purchase decision: Mediating role of consumer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 190-200.
    2. Shao, Bingjia & Cheng, Zhendong & Wan, Lijuan & Yue, Jie, 2021. "The impact of cross border E-tailer's return policy on consumer's purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    3. Vineet Kaushik & Ashwani Kumar & Himanshu Gupta & Gaurav Dixit, 2022. "Modelling and prioritizing the factors for online apparel return using BWM approach," Electronic Commerce Research, Springer, vol. 22(3), pages 843-873, September.
    4. Rokonuzzaman, Md & Iyer, Pramod & Harun, Ahasan, 2021. "Return policy, No joke: An investigation into the impact of a retailer's return policy on consumers' decision making," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    5. Huang, Wen-Hsien & Shen, George C. & Liang, Che-Ling, 2019. "The effect of threshold free shipping policies on online shoppers' willingness to pay for shipping," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 105-112.
    6. Shao, Xiao-Feng, 2017. "Free or calculated shipping: Impact of delivery cost on supply chains moving to online retailing," International Journal of Production Economics, Elsevier, vol. 191(C), pages 267-277.
    7. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    8. T. M. Rofin & Biswajit Mahanty, 2021. "Fulfillment mode selection for Indian online sellers under free and flat rate shipping policies," Electronic Commerce Research, Springer, vol. 21(2), pages 263-296, June.
    9. Hu Wang & Di Li & Changbin Jiang & Yuxiang Zhang, 2023. "Exploring the Interactive Relationship between Retailers’ Free Shipping Decisions and Manufacturers’ Product Sales in Digital Retailing," Sustainability, MDPI, vol. 15(17), pages 1-19, August.
    10. Zhen Fang & Yi-Chun (Chad) Ho & Xue (Jane) Tan & Yong Tan, 2021. "Show Me the Money: The Economic Impact of Membership-Based Free Shipping Programs on E-Tailers," Information Systems Research, INFORMS, vol. 32(4), pages 1115-1127, December.
    11. Huseyn Abdulla & James D. Abbey & Michael Ketzenberg, 2022. "How consumers value retailer's return policy leniency levers: An empirical investigation," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1719-1733, April.
    12. Chameroy, Fabienne & Salgado, Stéphane & de Barnier, Virginie & Chaney, Damien, 2024. "In platform we trust: How interchangeability affects trust decisions in collaborative consumption," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    13. Xiaxia Ma & Wenliang Bian & Xiqing Yang & Shengnan Niu & Yongming Cai & Jie Guan & Wenbin Wang, 2022. "Online Retailer’s Contingent Free-Shipping Decisions under Large-Scale Promotions Considering Delayed Delivery," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    14. Meents, S. & Verhagen, T. & Vlaar, P.W.L., 2011. "How sellers can stimulate purchasing in electronic marketplaces: Using information as a risk reduction signal," Serie Research Memoranda 0014, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. Marzieh Soleimani, 2022. "Buyers' trust and mistrust in e-commerce platforms: a synthesizing literature review," Information Systems and e-Business Management, Springer, vol. 20(1), pages 57-78, March.
    16. Xu, Xun & Jackson, Jonathan E., 2019. "Investigating the influential factors of return channel loyalty in omni-channel retailing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 118-132.
    17. Wenting Pan & Candice H. Huynh, 2023. "Optimal operational strategies for online retailers with demand and return uncertainty," Operations Management Research, Springer, vol. 16(2), pages 755-767, June.
    18. Kapoor, Anuj Pal & Vij, Madhu, 2021. "Following you wherever you go: Mobile shopping ‘cart-checkout’ abandonment," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    19. Di Fatta, Davide & Patton, Dean & Viglia, Giampaolo, 2018. "The determinants of conversion rates in SME e-commerce websites," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 161-168.
    20. Cao, Guangming & Duan, Yanqing & Edwards, John S. & Dwivedi, Yogesh K., 2021. "Understanding managers’ attitudes and behavioral intentions towards using artificial intelligence for organizational decision-making," Technovation, Elsevier, vol. 106(C).

    More about this item

    Keywords

    Online shopping; Virtual try-on technology (VTO); Return policies; Pay-on-delivery (POD) mode of payment; Vendor-specific guarantees; Free shipping policy; India; PEEIM;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    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:spr:elmark:v:31:y:2021:i:4:d:10.1007_s12525-020-00436-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.