Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms

The effects of e-commerce institutional mechanisms on trust and online purchase have traditionally been understood in the initial online purchase context. This study extends this literature by exploring the role of e-commerce institutional mechanisms in the online repurchase context. In doing so, it responds to the emerging call for understanding the institutional context under which customer trust operates in an e-commerce environment. Specifically, this study introduces a key moderator, perceived effectiveness of e-commerce institutional mechanisms (PEEIM), to the relationships between trust, satisfaction, and repurchase intention. Drawing on the theory of organizational trust, and based on a survey of 362 returning online customers, we find that PEEIM negatively moderates the relationship between trust in an online vendor and online customer repurchase intention, as it decreases the importance of trust to promoting repurchase behavior. We also find that PEEIM positively moderates the relationship between customer satisfaction and trust as it enhances the customer's reliance on past transaction experience with the vendor to reevaluate trust in the vendor. Consistent with the predictions made in the literature, PEEIM does not directly affect trust or repurchase intention. Academic and practical implications and future research directions are discussed.

[1]  R. Lewicki,et al.  Trust in relationships: A model of development and decline. , 1995 .

[2]  Varun Grover,et al.  The Role of System Trust in Business-to-Consumer Transactions , 2003, J. Manag. Inf. Syst..

[3]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[4]  GefenDavid,et al.  Building Effective Online Marketplaces with Institution-Based Trust , 2004 .

[5]  J. Jaccard,et al.  Interaction effects in multiple regression , 1992 .

[6]  D. A. Kenny,et al.  Estimating the nonlinear and interactive effects of latent variables. , 1984 .

[7]  Paul Benjamin Lowry,et al.  The CMC Interactivity Model: How Interactivity Enhances Communication Quality and Process Satisfaction in Lean-Media Groups , 2009, J. Manag. Inf. Syst..

[8]  Sirkka L. Jarvenpaa,et al.  Consumer trust in an Internet store , 2000, Inf. Technol. Manag..

[9]  J. E. Swan,et al.  Consumer perceptions of interpersonal equity and satisfaction in transactions: A field survey approach. , 1989 .

[10]  P. Verhoef,et al.  Critical Incidents and the Impact of Satisfaction on Customer Share , 2008 .

[11]  E. Tulving.  Elements of episodic memory , 1983 .

[12]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[13]  A. Tversky,et al.  The framing of decisions and the psychology of choice. , 1981, Science.

[14]  Helfried Moosbrugger,et al.  Maximum likelihood estimation of latent interaction effects with the LMS method , 2000 .

[15]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[16]  G. Balabanis,et al.  Consumer Attitudes Towards Multi-Channel Retailers' Web Sites: The Role of Involvement, Brand Attitude, Internet Knowledge, and Visit Duration , 1970, Journal of Business Strategies.

[17]  Mark S. Johnson,et al.  The Different Roles of Satisfaction, Trust, and Commitment in Customer Relationships , 1999 .

[18]  Yulin Fang,et al.  Repurchase intention in B2C e-commerce - A relationship quality perspective , 2011, Inf. Manag..

[19]  J. Barney,et al.  Trustworthiness as a Source of Competitive Advantage , 1994 .

[20]  James C. Beaty,et al.  Effect size and power in assessing moderating effects of categorical variables using multiple regression: a 30-year review. , 2005, The Journal of applied psychology.

[21]  Glenn J. Browne,et al.  Why Do Internet Users Stick with a Specific Web Site? A Relationship Perspective , 2006, Int. J. Electron. Commer..

[22]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[23]  J. S. Long,et al.  Testing Structural Equation Models , 1993 .

[24]  Ann Majchrzak,et al.  Perceived Individual Collaboration Know-How Development Through Information Technology-Enabled Contextualization: Evidence from Distributed Teams , 2005, Inf. Syst. Res..

[25]  Deborah Compeau,et al.  Assessing Between-Group Differences in Information Systems Research: A Comparison of Covariance-and Component-Based SEM , 2009, MIS Q..

[26]  G. Chakraborty,et al.  An empirical investigation of antecedents of B2B Websites’ effectiveness , 2002 .

[27]  Sung S. Kim.  The integrative framework of technology use: an extension and test , 2009 .

[28]  Richard P. Bagozzi,et al.  Recall, Recognition, and the Measurement of Memory for Print Advertisements , 1983 .

[29]  Peter Weill,et al.  An Assessment of the Contingency Theory of Management Information Systems , 1989, J. Manag. Inf. Syst..

[30]  Traci Carte,et al.  In Pursuit of Moderation: Nine Common Errors and Their Solutions , 2003, MIS Q..

[31]  Wynne W. Chin,et al.  A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic - Mail Emotion/Adoption Study , 2003, Inf. Syst. Res..

[32]  Dale Goodhue,et al.  Two Worlds of Trust for Potential E-Commerce Users: Humans as Cognitive Misers , 2012, Inf. Syst. Res..

[33]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[34]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[35]  Linda Ferrell,et al.  Consumers' trust of salesperson and manufacturer: an empirical study , 2001 .

[36]  Izak Benbasat,et al.  Do I Trust You Online, and If So, Will I Buy? An Empirical Study of Two Trust-Building Strategies , 2006, J. Manag. Inf. Syst..

[37]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[38]  S. Sitkin,et al.  Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust , 1993 .

[39]  Howard B. Lee,et al.  Foundations of Behavioral Research , 1973 .

[40]  Mark P. Leach,et al.  Building customer relations over the Internet , 2002 .

[41]  R. I. Sutton,et al.  Switching Cognitive Gears: From Habits of Mind to Active Thinking , 1991 .

[42]  K. Stewart.  Trust Transfer on the World Wide Web , 2002 .

[43]  Sandra Streukens,et al.  Comfort your online customer: quality, trust and loyalty on the internet , 2004 .

[44]  Susan Wiedenbeck,et al.  On-line trust: concepts, evolving themes, a model , 2003, Int. J. Hum. Comput. Stud..

[45]  Ahmad Jamal,et al.  Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking , 2002 .

[46]  A. Tversky,et al.  Prospect Theory : An Analysis of Decision under Risk Author ( s ) : , 2007 .

[47]  David A. de Vaus,et al.  Surveys in Social Research , 1996 .

[48]  H. Raghav Rao,et al.  Trust and Satisfaction, Two Stepping Stones for Successful E-Commerce Relationships: A Longitudinal Exploration , 2009, Inf. Syst. Res..

[49]  Claes Fornell,et al.  A second generation of multivariate analysis , 1982 .

[50]  Jeffrey L. Bradach,et al.  Price, Authority, and Trust: From Ideal Types to Plural Forms , 1989 .

[51]  Marcia J. Simmering,et al.  A Tale of Three Perspectives , 2009 .

[52]  Rodrigo Navia,et al.  Reviewer of the year , 2012 .

[53]  A. Greenwald.  Consequences of Prejudice Against the Null Hypothesis , 1975 .

[54]  Lawrence A. Crosby,et al.  Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry , 1987 .

[55]  Ellen Garbarino,et al.  Dynamic pricing in internet retail: Effects on consumer trust , 2003 .

[56]  J. G. Holmes.  Trust and the appraisal process in close relationships. , 1991 .

[57]  D. W. Schumann,et al.  Comparing Consumers' Recall of Prepurchase and Postpurchase Product Evaluation Experiences , 1994 .

[58]  N. L. Chervany,et al.  Initial Trust Formation in New Organizational Relationships , 1998 .

[59]  George A. Akerlof.  The Market for “Lemons”: Quality Uncertainty and the Market Mechanism , 1970 .

[60]  J. S. Long,et al.  Testing Structural Equation Models , 1993 .

[61]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[62]  Sabine Einwiller,et al.  When Reputation Engenders Trust: An Empirical Investigation in Business-to-Consumer Electronic Commerce , 2003, Electron. Mark..

[63]  A. Parasuraman,et al.  Marketing Services: Competing Through Quality , 1991 .

[64]  Yulin Fang,et al.  Understanding online customer repurchasing intention and the mediating role of trust – an empirical investigation in two developed countries , 2009, Eur. J. Inf. Syst..

[65]  Amy L. Pablo,et al.  Reconceptualizing the Determinants of Risk Behavior , 1992 .

[66]  W. Galston.  Trust: The Social Virtues and the Creation of Prosperity , 1996 .

[67]  R. Oliver.  Whence Consumer Loyalty? , 1999 .

[68]  Margit E. Oswald,et al.  READINESS TO TRUST IN COMPLEX SITUATIONS , 1998 .

[69]  Charles J. Kacmar,et al.  The impact of initial consumer trust on intentions to transact with a web site: a trust building model , 2002, J. Strateg. Inf. Syst..

[70]  Jakob Nielsen,et al.  E-Commerce User Experience , 2001 .

[71]  Shankar Ganesan.  Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[72]  R. Gurrea,et al.  The role played by perceived usability, satisfaction and consumer trust on website loyalty , 2006, Inf. Manag..

[73]  Izak Benbasat,et al.  Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation , 1991, Inf. Syst. Res..

[74]  France Bélanger,et al.  Gender differences in perceptions of web-based shopping , 2002, CACM.

[75]  C. Coogler,et al.  Foundations of Behavioral Research 2nd ed , 1974 .

[76]  J. Lewis,et al.  Trust as a Social Reality , 1985 .

[77]  Marcel Creemers,et al.  Understanding online purchase intentions: contributions from technology and trust perspectives , 2003, Eur. J. Inf. Syst..

[78]  Ann E. Schlosser,et al.  Converting Web Site Visitors into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and Online Purchase Intentions , 2006 .

[79]  Charles J. Kacmar,et al.  Shifting Factors and the Ineffectiveness of Third Party Assurance Seals: A Two-Stage Model of Initial Trust in a Web Business , 2004, Electron. Mark..

[80]  David Gefen,et al.  Customer Loyalty in E-Commerce , 2002, J. Assoc. Inf. Syst..

[81]  S. Andaleeb.  An experimental investigation of satisfaction and commitment in marketing channels: The role of trust and dependence , 1996 .

[82]  Rolph E. Anderson,et al.  Customer loyalty in e-commerce: an exploration of its antecedents and consequences , 2002 .

[83]  Paul A. Pavlou,et al.  Building Effective Online Marketplaces with Institution-Based Trust , 2004, Inf. Syst. Res..

[84]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[85]  Sirkka L. Jarvenpaa,et al.  Consumer Trust in an Internet Store: A Cross-Cultural Validation , 2006, J. Comput. Mediat. Commun..

[86]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[87]  L. Zucker.  Production of trust: Institutional sources of economic structure, 1840–1920. , 1986 .

[88]  S. Shapiro.  The Social Control of Impersonal Trust , 1987, American Journal of Sociology.

[89]  Ritu Agarwal,et al.  Adoption of Electronic Health Records in the Presence of Privacy Concerns: The Elaboration Likelihood Model and Individual Persuasion , 2009, MIS Q..

[90]  Detmar W. Straub,et al.  Examining Trust in Information Technology Artifacts: The Effects of System Quality and Culture , 2008, J. Manag. Inf. Syst..

[91]  Scott B. MacKenzie,et al.  Construct Measurement and Validation Procedures in MIS and Behavioral Research: Integrating New and Existing Techniques , 2011, MIS Q..

[92]  Fn Kerlinger,et al.  Foundations of behavioral research (2nd ed. , 1973 .

[93]  Dwayne A. Ball,et al.  The role of communication and trust in explaining customer loyalty: An extension to the ECSI model , 2004 .

[94]  Seymour Sudman,et al.  Effects of Time and Memory Factors on Response in Surveys , 1973 .

[95]  P. Tannenbaum,et al.  Theories of cognitive consistency: a sourcebook. , 1968 .

[96]  Sung-joon Yoon,et al.  The antecedents and consequences of trust in online-purchase decisions , 2002 .

[97]  Ewald A. Kaluscha,et al.  Empirical research in on-line trust: a review and critical assessment , 2003, Int. J. Hum. Comput. Stud..

[98]  Charles J. Kacmar,et al.  Developing and Validating Trust Measures for e-Commerce: An Integrative Typology , 2002, Inf. Syst. Res..

[99]  Paul A. Pavlou,et al.  The Moderating Role of Perceived Regulatory Effectiveness of Online Marketplaces on the Role of Trust and Risk on Transaction Intentions , 2006, ICIS.

[100]  Joon Koh,et al.  A Comparison of Online Trust Building Factors between Potential Customers and Repeat Customers , 2004, J. Assoc. Inf. Syst..

[101]  Jacob Cohen.  Statistical Power Analysis for the Behavioral Sciences , 1969, The SAGE Encyclopedia of Research Design.

[102]  Izak Benbasat,et al.  The Effects of Trust-Assuring Arguments on Consumer Trust in Internet Stores: Application of Toulmin's Model of Argumentation , 2006, Inf. Syst. Res..

[103]  N. Luhmann.  Trust and Power , 1979 .

[104]  M. Lindell,et al.  Accounting for common method variance in cross-sectional research designs. , 2001, The Journal of applied psychology.

[105]  Bernard Barber,et al.  The Logic and Limits of Trust , 1983 .

[106]  J. Riley,et al.  The Analytics of Uncertainty and Information- An Expository Survey , 1979 .

[107]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[108]  Naresh K. Malhotra,et al.  Research Note - Two Competing Perspectives on Automatic Use: A Theoretical and Empirical Comparison , 2005, Inf. Syst. Res..

[109]  Bernard Barber,et al.  The Logic and Limits of Trust , 1983 .

[110]  Jacob Cohen,et al.  Applied multiple regression/correlation analysis for the behavioral sciences , 1979 .

[111]  R. Folger,et al.  When is it Acceptable to Accept a Null Hypothesis: No Way, Jose? , 1998 .

[112]  Varun Grover,et al.  An empirical study on Web-based services and customer loyalty , 2006, Eur. J. Inf. Syst..

[113]  J. Cacioppo,et al.  Relationship between attitudes and evaluative space: A critical review, with emphasis on the separability of positive and negative substrates. , 1994 .

[114]  Izak Benbasat,et al.  A Research Agenda for Trust in Online Environments , 2008, J. Manag. Inf. Syst..

[115]  Paul A. Pavlou,et al.  Understanding and Predicting Electronic Commerce Adoption: An Extension of the Theory of Planned Behavior , 2006, MIS Q..

[116]  D. D. Vaus,et al.  Surveys in Social Research , 1991 .

[117]  Izak Benbasat,et al.  Trust-Assuring Arguments in B2C E-commerce: Impact of Content, Source, and Price on Trust , 2009, J. Manag. Inf. Syst..

[118]  Norman L. Chervany,et al.  What Trust Means in E-Commerce Customer Relationships: An Interdisciplinary Conceptual Typology , 2001, Int. J. Electron. Commer..