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The Influence of Perceived Relative Advantage on Customers' Initial Trust Towards Unfamiliar Online Store Retailer

Author

Listed:
  • Chiet-Bing Wong

    ("Faculty of Accountancy, Finance & Business, Tunku Abdul Rahman University of Management and Technology, Malaysia." Author-2-Name: Tan Sharon @ Rebecca Author-2-Workplace-Name: "Faculty of Accountancy, Finance & Business, Tunku Abdul Rahman University of Management and Technology, Malaysia." Author-3-Name: Karen Esther Tan Author-3-Workplace-Name: "Faculty of Accountancy, Finance & Business, Tunku Abdul Rahman University of Management and Technology, Malaysia." Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - Creating an independent online store presents businesses with an opportunity to cultivate their brand and devoted customer base. To achieve long-term success, it is crucial to build a new customer base and establish initial trust. Prior research has explored various aspects of initial trust and identified factors crucial for businesses in devising strategies to attract customers. However, while some studies have investigated the impact of perceived relative advantage on initial trust, the findings remain inconclusive, leaving unexplored facets. This study aimed to scrutinize how perceived relative advantage influences customers' initial beliefs and intentions to trust an unfamiliar online store retailer. Methodology/Technique - Data gathered from a survey underwent statistical analysis using Structural Equation Modeling (SEM). Findings - The results revealed that perceived relative advantage significantly and positively impacted both initial trusting beliefs and intention. This research contributes to comprehending the relationship between initial trust and perceived relative advantage, especially in an underexamined context in Malaysia. Novelty - The study developed and validated a research model that extends the Theory of Reasoned Action (TRA) by incorporating perceived relative advantage as a key antecedent to initial trust. In practical terms, it provides valuable guidance for new online store retailers in formulating strategies to establish trust with their initial consumers, and brand-new online store retailers in conceiving strategies for establishing initial consumer trust. Type of Paper - Empirical"

Suggested Citation

  • Chiet-Bing Wong, 2024. "The Influence of Perceived Relative Advantage on Customers' Initial Trust Towards Unfamiliar Online Store Retailer," GATR Journals jmmr333, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jmmr333
    DOI: https://doi.org/10.35609/jmmr.2024.9.2(2)
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    References listed on IDEAS

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    1. Paul Benjamin Lowry & Anthony Vance & Greg Moody & Bryan Beckman & Aaron Read, 2008. "Explaining and Predicting the Impact of Branding Alliances and Web Site Quality on Initial Consumer Trust of E-Commerce Web Sites," Post-Print halshs-00684347, HAL.
    2. Kim, Kyongseok & Kim, Jooyoung, 2011. "Third-party Privacy Certification as an Online Advertising Strategy: An Investigation of the Factors Affecting the Relationship between Third-party Certification and Initial Trust," Journal of Interactive Marketing, Elsevier, vol. 25(3), pages 145-158.
    3. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    4. 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.
    5. repec:dau:papers:123456789/12465 is not listed on IDEAS
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    More about this item

    Keywords

    Trust; Initial Trust; Perceived Relative Advantage; Trusting Beliefs; Trusting Intention; E-Commerce;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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