Factors Influecing Customer's Trust in Online Shopping Among Executives in a Bank
Keywords:
online shopping, trust, information quality, site quality, online consumer review, online purchasing decision
Abstract
Having many advantages that traditional shopping lack of, online shopping is now enjoying its predominance and rapid development in Malaysia. In many previous researches, focus has been found in the relationship between consumer trust and its antecedents. The objective of this study is to examine some factors affecting consumer trust in Malaysia as well as to investigate the relationship between trust and purchasing decision. A questionnaire was distributed among bank employees of CIMB Bank Berhad. Correlations and regressions were used in analyzing the data. This paper provides evidence that trust in online shopping is built on information quality, online consumer review and site quality. It also proves that trust contributes to the online purchasing decision.
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References
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Ba, S. & Pavlou, P.A. (2002). Evidence of the Effect of Trust Building Technology in Electronic Markets: Price Premiums and Buyer Behavior. MIS Quarterly, 26(3), 243- 268.
Blau, P.M. (1964). Exchange and Power in Social Life, John Wiley and Sons, New York.
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Chatterjee, P. Online reviews: Do consumers use them? Adv. Consum. Res. 2001, 28, 129–133.
Cheung, C. M. K. & Lee, M. K. O.(2000). Trust in Internet Shopping: A Proposed Model and Measurement Instrument. Proceedings of the 2000 America's Conference on Information Systems (AMCIS), 681 – 689.
Cheung, C. M. K. & Lee, M. K. O. (2006). Understanding Consumer Trust in Internet Shopping : A Multidisciplinary Approach. Journal of the American Society for Information Science and Technology, 57(4), 479 – 492.
Chevalier, J.A. & Mayzlin, D. (2006). The Effect of Word of Mouth on Sales: Online Book Reviews. Journal of Marketing Research, 43, 345 – 354.
Degeratu, A. et al. (2000). Consumer Choice Behavior in Online and Traditional Supermarkets : The Effects of Brand Name, Price and Other Search Attributes. International Journal of Research in Marketing, 13(1),41- 54.
Dellaert, B. G. C.; Kahn, B. E. (1999). How Tolerable is Delay? Consumers’ Evaluations of Internet Web Sites after Waiting. Working Paper, CentER for Economic Research, Tilburg University.
Desatnick, R. L., & Detzel, D. H. (1987). Managing to keep the customer: How to achieve and maintain superior customer service throughout the organization. Jossey-Bass.
Duan, W., Gu, B., & Whinston, A.B. (2008). The Dynamics of Online Word-of-Mouth and Product Sales: An Empirical Investigation of the Movie Industry. Journal of Retailing, 84(2), 233-242.
Kim, E. & Suresh, T. (2010). A Model of Customers' Initial Trust in Unknown Online Retailers: An Empirical Study. International Journal of Business Information Systems 6(4), 419-443.
Fang, Y.H et al. (2011). Understanding Customers' Satisfaction and Repurchase Intentions: An Integration of IS Success Model, Trust and Justice. Internet Research, 21(4), 479 – 503.
Forman, C., A. Ghose, A. Goldfarb (2008). Competition between local and electronic markets: How the benefit of buying online depends on where you live. Management Sci. Forthcoming.
Gefen, D. (2000). Commerce the Role of Familiarity and Trust. The International Journal of Management Science, 28 (6): 725 – 737.
Godes, D. & Mayzlin, D. (2004). Using Online Conversations to Study Word of Mouth Communication. Marketing Science, 23 (4): 545 – 560.
Grazioli, S., Jarvenpaa, S., 2000. Perils of Internet fraud: an empirical investigation of deception and trust with experienced Internet consumers. IEEE Transactions on Systems, Man, and Cybernetics 30 (4), 395–410.
Gupta, S. & Chattergee, R. (1997). Consumer and Corporate Adoption of the World Wide Web as a Commercial Medium. Electronic Marketing and the Consumer, Sage Publications, CA, 123 – 138.
Haque, A., Tarofder, A. K., Rahman, S., & Raquib, M. A. (2009). Electronic transaction of internet banking and its perception of Malaysian online customers. African Journal of Business Management, 3(6), 248.
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Keller, K. L. and Staelin, R. (1987). Effects of Quality and Quantity of Information on Decision Effectiveness. Journal of Consumer Research, 14, 200–213.
Kim, H. et al. (2004). A Comparison of Online Trust Building Factors between Potential Customers and Repeat Customers. Journal of Association for Information Systems, 5(10), 392 – 420.
Kim, J. and Lee, J. (2002). Critical design factors for successful e-commerce systems. Behaviour and Information Technology, 21(3), 185-9.
Koufaris, M. & Sosa, W. H. (2002). Customer Trust Online: Examining the Role of the Experience with the Website. Retrieved December 12, 2012 from http://onemvweb.com/sources/sources/trust_online_role_website.pdf
Koufaris, M. and Sosa, W.H. (2004). The development of initial trust in an online company by new customers. Information & Management, 41, 377-397.
Lee, J., Park, D. H., & Han, I. (2011). Emerald Article: The different effects of online consumer reviews on consumers' purchase intentions depending on trust in online shopping malls: An advertising perspective. Internet Research, 21(2), 187-206.
Liang, T. P., & Lai, H. J. (2000). Electronic store design and consumer choice: an empirical study. In System Sciences, 2000. Proceedings of the 33rd Annual Hawaii International Conference on (10-pp). IEEE.
Li, N., & Zhang, P. (2002). Consumer online shopping attitudes and behavior: An assessment of research. In Eighth Americas Conference on Information Systems (508-517).
Lim, H. & Dubinsky, A. J. (2004). Consumers' Perceptions of e-Shopping Characteristics: An Expectancy Value Approach. Journal of Services Marketing, 18 (7), 500 – 513.
Lim, K. H., Sia, C. L., Lee, M. K. O., & Benbasat, I. (2006). Do I trust you online, and if so, Will I Buy? An empirical study of two trust-building strategies. Journal of Management Information Systems, 23(2), 233–266.
Lohse, G. L. & Spiller, P. (1998). Electronic Shopping: How Do Customer Interfaces Produce Sales on the Internet? Communications of the ACM, 41 (7), 81 – 87.
Mao, D. (2010). A Study of Consumer Trust in Internet Shopping And the Moderating Effect of Risk Aversion in Mainland China (Doctoral dissertation, Hong Kong Baptist University Hong Kong).
Mayer, R. C. et al. (1995). An Integrative Model of Organizational Trust. Academy of Management Review, 20 (3), 709 – 734.
McKnight, D.H., Chervany, N.L., 2001–2002. What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. International Journal of Electronic Commerce 6 (2), 35–59.
Miller, (1956). The Magical Number Seven, Plus or Minus Two: Some Limits on Our Capacity for Processing Information. The Psychological Review, 63, 81-97
Nefti S, Meziane F, Kasiran K (2005) A fuzzy trust model for E-commerce. In: Proceedings of the Seventh IEEE International Conference on E-Commerce Technology (CEC '05). IEEE COmputer Society, Washington, DC, USA, 401-404
Nikhashem, S. R. et al. (2011). Study on Customer Perception towards Online Ticketing in Malaysia. 1eProceedings for 2011 International Research Conference and Colloquium.
Pavlou, P. A. (2003). Consumer Acceptance of Electronic Commerce – Integrating Trust and Risk, with the Technology Acceptance Model. International Journal of Electronic Commerce, 7(3), 101 – 134.
Pavlou, P.A. & Dimoka, A. (2006). The Nature and Role of Feedback Text Comments in Online Marketplaces: Implications for Trust Building, Price Premiums, and Seller Differentiation,” Information Systems Research, 17, 4, 392-414.
Peterson, R. A., Sridhar, B. & Bart J.Bronnenberg (1997). Exploring the Implications of the Internet for Consumer Marketing, Journal of the Academy of Marketing Science, 25, 329-346.
Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32(6), 1310-1323.
Reichheld, F.F. & Schefter, P., (2000), “E-Loyalty”, Harvard Business Review, 78(4), 105-113.
Sultan, M. U.& Uddin, M. N. (2011). Consumers’ Attitude towards Online Shopping: Factors influencing Gotland consumers to shop online. Diss. Gotland University.
Wakefield, R. L. et al. (2004). The Role of Website Characteristics in Initial Trust Formation. Journal of Computer Information Systems, 45 (1), 94 – 103.
Xia, L. and Bechwati, N. N. (2008), Word of Mouse: The Role of Cognitive Personalization in Online Consumer Reviews. Journal of Interactive Advertising, 9, 1, 3-13.
ACNielsen (2007), Seek & You Shall Buy. Entertainment and Travel [online]. Available at: http://www.acnielsen.com/news/20051019.html [Accessed 3 November 2012]
Ahluwalia, R. & Shiv, B. (1997). The Effects of Negative Information in the Political and Marketing Arenas: Exceptions to the Negativity Effect. Advances in Consumer Research, 24(1), 222-222.
Ba, S. & Pavlou, P.A. (2002). Evidence of the Effect of Trust Building Technology in Electronic Markets: Price Premiums and Buyer Behavior. MIS Quarterly, 26(3), 243- 268.
Blau, P.M. (1964). Exchange and Power in Social Life, John Wiley and Sons, New York.
Boulding, W. et al. (1993). A Dynamic Process Model of Service Quality. Journal of Marketing, 30, 7 – 27.
Centeno, C. (2002). Building security and consumer trust in internet payments: The potential of “soft” measures- Report EUR20278 EN. Spain: Institute for Prospective Technological Studies.
Chatterjee, P. Online reviews: Do consumers use them? Adv. Consum. Res. 2001, 28, 129–133.
Cheung, C. M. K. & Lee, M. K. O.(2000). Trust in Internet Shopping: A Proposed Model and Measurement Instrument. Proceedings of the 2000 America's Conference on Information Systems (AMCIS), 681 – 689.
Cheung, C. M. K. & Lee, M. K. O. (2006). Understanding Consumer Trust in Internet Shopping : A Multidisciplinary Approach. Journal of the American Society for Information Science and Technology, 57(4), 479 – 492.
Chevalier, J.A. & Mayzlin, D. (2006). The Effect of Word of Mouth on Sales: Online Book Reviews. Journal of Marketing Research, 43, 345 – 354.
Degeratu, A. et al. (2000). Consumer Choice Behavior in Online and Traditional Supermarkets : The Effects of Brand Name, Price and Other Search Attributes. International Journal of Research in Marketing, 13(1),41- 54.
Dellaert, B. G. C.; Kahn, B. E. (1999). How Tolerable is Delay? Consumers’ Evaluations of Internet Web Sites after Waiting. Working Paper, CentER for Economic Research, Tilburg University.
Desatnick, R. L., & Detzel, D. H. (1987). Managing to keep the customer: How to achieve and maintain superior customer service throughout the organization. Jossey-Bass.
Duan, W., Gu, B., & Whinston, A.B. (2008). The Dynamics of Online Word-of-Mouth and Product Sales: An Empirical Investigation of the Movie Industry. Journal of Retailing, 84(2), 233-242.
Kim, E. & Suresh, T. (2010). A Model of Customers' Initial Trust in Unknown Online Retailers: An Empirical Study. International Journal of Business Information Systems 6(4), 419-443.
Fang, Y.H et al. (2011). Understanding Customers' Satisfaction and Repurchase Intentions: An Integration of IS Success Model, Trust and Justice. Internet Research, 21(4), 479 – 503.
Forman, C., A. Ghose, A. Goldfarb (2008). Competition between local and electronic markets: How the benefit of buying online depends on where you live. Management Sci. Forthcoming.
Gefen, D. (2000). Commerce the Role of Familiarity and Trust. The International Journal of Management Science, 28 (6): 725 – 737.
Godes, D. & Mayzlin, D. (2004). Using Online Conversations to Study Word of Mouth Communication. Marketing Science, 23 (4): 545 – 560.
Grazioli, S., Jarvenpaa, S., 2000. Perils of Internet fraud: an empirical investigation of deception and trust with experienced Internet consumers. IEEE Transactions on Systems, Man, and Cybernetics 30 (4), 395–410.
Gupta, S. & Chattergee, R. (1997). Consumer and Corporate Adoption of the World Wide Web as a Commercial Medium. Electronic Marketing and the Consumer, Sage Publications, CA, 123 – 138.
Haque, A., Tarofder, A. K., Rahman, S., & Raquib, M. A. (2009). Electronic transaction of internet banking and its perception of Malaysian online customers. African Journal of Business Management, 3(6), 248.
Hawkins, D. I., Best, R. J., & Coney, K. A. (1998). Consumer Behavior: building marketing strategy. (7th ed.). Boston: McGraw-Hill.
Hoffman, D. L. et al. (1999). Building Con Trust Online. Communications of the ACM, 42 (4), 80 – 85.
Kaur, K. (2005) Consumer protection in E-commerce in Malaysia: An overview, UNEAC Asia papers. Retrieved February 2, 2013 from http:// www.une.edu.au/asiacenter/KKaur.pdf
Keller, K. L. and Staelin, R. (1987). Effects of Quality and Quantity of Information on Decision Effectiveness. Journal of Consumer Research, 14, 200–213.
Kim, H. et al. (2004). A Comparison of Online Trust Building Factors between Potential Customers and Repeat Customers. Journal of Association for Information Systems, 5(10), 392 – 420.
Kim, J. and Lee, J. (2002). Critical design factors for successful e-commerce systems. Behaviour and Information Technology, 21(3), 185-9.
Koufaris, M. & Sosa, W. H. (2002). Customer Trust Online: Examining the Role of the Experience with the Website. Retrieved December 12, 2012 from http://onemvweb.com/sources/sources/trust_online_role_website.pdf
Koufaris, M. and Sosa, W.H. (2004). The development of initial trust in an online company by new customers. Information & Management, 41, 377-397.
Lee, J., Park, D. H., & Han, I. (2011). Emerald Article: The different effects of online consumer reviews on consumers' purchase intentions depending on trust in online shopping malls: An advertising perspective. Internet Research, 21(2), 187-206.
Liang, T. P., & Lai, H. J. (2000). Electronic store design and consumer choice: an empirical study. In System Sciences, 2000. Proceedings of the 33rd Annual Hawaii International Conference on (10-pp). IEEE.
Li, N., & Zhang, P. (2002). Consumer online shopping attitudes and behavior: An assessment of research. In Eighth Americas Conference on Information Systems (508-517).
Lim, H. & Dubinsky, A. J. (2004). Consumers' Perceptions of e-Shopping Characteristics: An Expectancy Value Approach. Journal of Services Marketing, 18 (7), 500 – 513.
Lim, K. H., Sia, C. L., Lee, M. K. O., & Benbasat, I. (2006). Do I trust you online, and if so, Will I Buy? An empirical study of two trust-building strategies. Journal of Management Information Systems, 23(2), 233–266.
Lohse, G. L. & Spiller, P. (1998). Electronic Shopping: How Do Customer Interfaces Produce Sales on the Internet? Communications of the ACM, 41 (7), 81 – 87.
Mao, D. (2010). A Study of Consumer Trust in Internet Shopping And the Moderating Effect of Risk Aversion in Mainland China (Doctoral dissertation, Hong Kong Baptist University Hong Kong).
Mayer, R. C. et al. (1995). An Integrative Model of Organizational Trust. Academy of Management Review, 20 (3), 709 – 734.
McKnight, D.H., Chervany, N.L., 2001–2002. What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. International Journal of Electronic Commerce 6 (2), 35–59.
Miller, (1956). The Magical Number Seven, Plus or Minus Two: Some Limits on Our Capacity for Processing Information. The Psychological Review, 63, 81-97
Nefti S, Meziane F, Kasiran K (2005) A fuzzy trust model for E-commerce. In: Proceedings of the Seventh IEEE International Conference on E-Commerce Technology (CEC '05). IEEE COmputer Society, Washington, DC, USA, 401-404
Nikhashem, S. R. et al. (2011). Study on Customer Perception towards Online Ticketing in Malaysia. 1eProceedings for 2011 International Research Conference and Colloquium.
Pavlou, P. A. (2003). Consumer Acceptance of Electronic Commerce – Integrating Trust and Risk, with the Technology Acceptance Model. International Journal of Electronic Commerce, 7(3), 101 – 134.
Pavlou, P.A. & Dimoka, A. (2006). The Nature and Role of Feedback Text Comments in Online Marketplaces: Implications for Trust Building, Price Premiums, and Seller Differentiation,” Information Systems Research, 17, 4, 392-414.
Peterson, R. A., Sridhar, B. & Bart J.Bronnenberg (1997). Exploring the Implications of the Internet for Consumer Marketing, Journal of the Academy of Marketing Science, 25, 329-346.
Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32(6), 1310-1323.
Reichheld, F.F. & Schefter, P., (2000), “E-Loyalty”, Harvard Business Review, 78(4), 105-113.
Sultan, M. U.& Uddin, M. N. (2011). Consumers’ Attitude towards Online Shopping: Factors influencing Gotland consumers to shop online. Diss. Gotland University.
Wakefield, R. L. et al. (2004). The Role of Website Characteristics in Initial Trust Formation. Journal of Computer Information Systems, 45 (1), 94 – 103.
Xia, L. and Bechwati, N. N. (2008), Word of Mouse: The Role of Cognitive Personalization in Online Consumer Reviews. Journal of Interactive Advertising, 9, 1, 3-13.
