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Perceived risk and trust associated with purchasing at electronic marketplaces

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  • Tibert Verhagen
  • Selmar Meents
  • Yao-Hua Tan

Abstract

Understanding consumer behaviour is of vital importance to consumer-oriented e-business models today. In this paper, we study the relationships between consumer perceptions of risk and trust and the attitude towards purchasing at a consumer-to-consumer electronic marketplace (EM). Typical for EM settings is that consumer behaviour is subject to perceptions of the selling party as well as of the institutional structures of the intermediary that is operating the EM. Building upon the well-established literature of trust, we consider the concepts of intermediary trust and seller trust. We extend this categorisation by introducing the concepts of intermediary risk and seller risk. We developed measurement instruments for intermediary risk and seller risk. All measurement scales have acceptable alphas and are unidimensional. An empirical study is conducted to explore the relationships between the risk and trust types and consumer purchase attitude. The results reveal significant, direct effects of seller trust and seller risk. Second-order effects of intermediary trust and intermediary risk are investigated and reported. The paper concludes with general observations and recommendations for research and practice.

Suggested Citation

  • Tibert Verhagen & Selmar Meents & Yao-Hua Tan, 2006. "Perceived risk and trust associated with purchasing at electronic marketplaces," European Journal of Information Systems, Taylor & Francis Journals, vol. 15(6), pages 542-555, December.
    • Handle: RePEc:taf:tjisxx:v:15:y:2006:i:6:p:542-555
    DOI: 10.1057/palgrave.ejis.3000644
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    Cited by:

    1. Luo, Lijuan & Xu, Meiling & Zheng, Yujie, 2024. "Informative or affective? Exploring the effects of streamers’ topic types on user engagement in live streaming commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    2. Laradi, Sofiane & Alrawad, Mahmaod & Lutfi, Abdalwali & Agag, Gomaa, 2024. "Understanding factors affecting social commerce purchase behavior: A longitudinal perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    3. 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.
    4. Han, Min Chung, 2023. "Checkout button and online consumer impulse-buying behavior in social commerce: A trust transfer perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    5. Rohit Aggarwal & Vishal Midha & Nicholas Sullivan, 2024. "Effect of Online Professional Network Recommendations on the Likelihood of an Interview: A Field Study," Information Systems Research, INFORMS, vol. 35(1), pages 104-119, March.
    6. Eugenia Y. Huang & Shu-Chiung Lin & I-Ting Hsieh, 2023. "Online marketplace sellers’ influence on rating scores and comment orientation," Electronic Commerce Research, Springer, vol. 23(2), pages 1241-1270, June.

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