The Effect of Trust and Perceived Risk on Consumers' Online Purchase Intention

With the rapid growth of e-commerce in Taiwan, B2C domain of e-commerce has been the significant issue recently. According to the importance to understand and predict consumers’ online purchase intention. Based on the Technology Acceptance Model (TAM), this study aims to predict the consumers’ purchase intention by integrating trust and perceived risk into the model to empirically examine the impacts of key drivers. With 705 samples obtained from users of Yahoo! Kimo online vendor, this study applied the Structural Equation Model (SEM) to examine the proposed model. The results indicate that perceived ease of use (PEOU) and perceived usefulness (PU), trust, as well as perceived risk, significantly impact purchase intention. Moreover, trust significantly reduced perceived risk.

[1]  I. Ajzen,et al.  Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research , 1977 .

[2]  Blair H. Sheppard,et al.  Business on a handshake , 1992 .

[3]  Young-Gul Kim,et al.  Extending the TAM for a World-Wide-Web context , 2000, Inf. Manag..

[4]  L. Stoel,et al.  Consumer e-shopping acceptance: Antecedents in a technology acceptance model , 2009 .

[5]  Fred D. Davis.  Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology , 1989, MIS Q..

[6]  Marie Christine Roy,et al.  The impact of interface usability on trust in Web retailers , 2001, Internet Res..

[7]  Stephen C. Wingreen,et al.  Untangling the Antecedents and Covariates of E-Commerce Trust: Institutional Trust vs. Knowledge-Based Trust , 2005, Electron. Mark..

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

[9]  Jill W. Graham.  Managerial Ideology and the Social Control of Deviance in Organizations , 1988 .

[10]  P. Pavlou.  INTEGRATING TRUST IN ELECTRONIC COMMERCE WITH THE TECHNOLOGY ACCEPTANCE MODEL: MODEL DEVELOPMENT AND VALIDATION , 2001 .

[11]  Joseph P. Cannon,et al.  Understanding the Influence of National Culture on the Development of Trust , 1998 .

[12]  I. Ajzen,et al.  Understanding Attitudes and Predicting Social Behavior , 1980 .

[13]  Lei-da Chen,et al.  Technology Adaptation in E-Commerce: Key Determinants of Virtual Stores Acceptance , 2004 .

[14]  Ingoo Han,et al.  Effect of trust on customer acceptance of Internet banking , 2002, Electron. Commer. Res. Appl..

[15]  Fred D. Davis,et al.  A Model of the Antecedents of Perceived Ease of Use: Development and Test† , 1996 .

[16]  D. Gefen,et al.  Nurturing clients’ trust to encourage engagement success during the customization of ERP systems , 2002 .

[17]  F. Sultan,et al.  Are the Drivers and Role of Online Trust the Same for All Web Sites and Consumers? A Large-Scale Exploratory Empirical Study , 2005 .

[18]  Paul A. Pavlou,et al.  Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model , 2003, Int. J. Electron. Commer..

[19]  Peter A. Todd,et al.  Perceived Usefulness, Ease of Use, and Usage of Information Technology: A Replication , 1992, MIS Q..

[20]  Timothy Teo,et al.  Understanding pre-service teachers' computer attitudes: applying and extending the technology acceptance model , 2007, J. Comput. Assist. Learn..

[21]  P. Pavlou,et al.  Perceived Information Security, Financial Liability and Consumer Trust in Electronic Commerce Transactions , 2002 .

[22]  Detmar W. Straub,et al.  The Relative Importance of Perceived Ease of Use in IS Adoption: A Study of E-Commerce Adoption , 2000, J. Assoc. Inf. Syst..

[23]  H. Simon,et al.  A simulation of memory for chess positions. , 1973 .

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

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

[26]  Matthew K. O. Lee,et al.  A Trust Model for Consumer Internet Shopping , 2001, Int. J. Electron. Commer..

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

[28]  Arik Ragowsky,et al.  Establishing Trust in Electronic Commerce Through Online Word of Mouth: An Examination Across Genders , 2008, J. Manag. Inf. Syst..

[29]  M. Casson,et al.  A Theory of Cooperation in International Business , 2010 .

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

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

[32]  Katherine J. Stewart,et al.  Transference as a means of building trust in World Wide Web sites , 1999, ICIS.

[33]  A. Baier.  Trust and Antitrust , 1986, Ethics.

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

[35]  B. Clegg,et al.  An investigation into the acceptance of online banking in Saudi Arabia , 2009 .

[36]  Milena M. Head,et al.  Manipulating perceived social presence through the web interface and its impact on attitude towards online shopping , 2007, Int. J. Hum. Comput. Stud..

[37]  Fred D. Davis.  A technology acceptance model for empirically testing new end-user information systems : theory and results , 1985 .

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

[39]  Izak Benbasat,et al.  Recommendation Agents for Electronic Commerce: Effects of Explanation Facilities on Trusting Beliefs , 2007, J. Manag. Inf. Syst..

[40]  Paul A. Pavlou,et al.  Encouraging Citizen Adoption of eGovernment by Building Trust , 2002, Electron. Mark..

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

[42]  Izak Benbasat,et al.  Trust-Related Arguments in Internet Stores: A Framework for Evaluation , 2003, J. Electron. Commer. Res..

[43]  Sally McKechnie,et al.  The Determinants and Consequences of Consumer Trust in e-Retailing: A Conceptual Framework , 2005 .

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

[45]  H. Raghav Rao,et al.  A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents , 2008, Decis. Support Syst..

[46]  Nirmalya Kumar,et al.  The power of trust in manufacturer-retailer relationships , 1996 .

[47]  O. Williamson.  Calculativeness, Trust, and Economic Organization , 1993, The Journal of Law and Economics.

[48]  Paola Benassi,et al.  TRUSTe: an online privacy seal program , 1999, CACM.

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

[50]  Henry C. Lucas,et al.  Technology Use and Performance: A Field Study of Broker Workstations* , 1999 .

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

[52]  Jihye Park,et al.  Consumers’ channel choice for university-licensed products: Exploring factors of consumer acceptance with social identification , 2007 .

[53]  Torben Hansen.  Consumer values, the theory of planned behaviour and online grocery shopping , 2008 .

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

[55]  D. Harrison McKnight,et al.  Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use , 2006, Inf. Syst. Res..

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

[57]  Fred D. Davis,et al.  User Acceptance of Computer Technology: A Comparison of Two Theoretical Models , 1989 .

[58]  H. Hasan,et al.  Toward a model for the acceptance of Internet banking in developing countries , 2005 .

[59]  Paul A. Pavlou,et al.  Understanding and Mitigating Uncertainty in Online Exchange Relationships: A Principal-Agent Perspective , 2007, MIS Q..

[60]  Gi Mun Kim,et al.  Understanding dynamics between initial trust and usage intentions of mobile banking , 2009, Inf. Syst. J..

[61]  P. Dasgupta.  Trust as a commodity , 1988 .

[62]  D. Gefen,et al.  E-commerce: the role of familiarity and trust , 2000 .

[63]  Tino Fenech,et al.  Web retailing adoption: exploring the nature of internet users Web retailing behaviour , 2003 .

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

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

[66]  Jaeki Song,et al.  Investigating the role of attitude in technology acceptance from an attitude strength perspective , 2009, Int. J. Inf. Manag..

[67]  Fred D. Davis,et al.  A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies , 2000, Management Science.

[68]  Charles J. Kacmar,et al.  Trust in e-commerce vendors: a two-stage model , 2000, ICIS.

[69]  J. E. Swan,et al.  Customer Trust in the Salesperson: An Integrative Review and Meta-Analysis of the Empirical Literature , 1999 .

[70]  Gillian Sullivan Mort,et al.  Consumers' technology adoption behaviour: an alternative model , 2007 .

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

[72]  Matthew K. O. Lee,et al.  Understanding consumer trust in Internet shopping: A multidisciplinary approach , 2006, J. Assoc. Inf. Sci. Technol..