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Direct and Indirect Effects of Perceived Risk and Website Reputation on Purchase Intention

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  • Chatpong Tangmanee

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

  • Chayanin Rawsena

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

Abstract

Success in electronic commerce relies greatly on customer trust. While other studies have examined various factors affecting online customer trust, few have investigated the joint effects of perceived risk and website reputation on purchase intention using online trust as a mediator. The current study attempts to fill this gap. 300 online shoppers participated via web-based questionnaires using a quota sampling technique. Based on confirmatory factor analysis (CFA), our measurements were found to be valid and reliable. Using structural equation modeling (SEM), we confirmed significant direct effects of perceived risk and website reputation on customer purchase intentions. Furthermore, both factors had significant indirect effects on purchase intention through online trust. In addition to extending theoretical insight into online trust as a mediator for the effects of perceived risk and website reputation on purchase intention, web-based vendors may adopt the findings to adjust their online stores to raise customer trust and ultimately increase the possibility of online purchases. Key Words: Online Trust, Perceived Risk, Website Reputation, Purchase Intention

Suggested Citation

  • Chatpong Tangmanee & Chayanin Rawsena, 2016. "Direct and Indirect Effects of Perceived Risk and Website Reputation on Purchase Intention," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 5(6), pages 01-11, October.
  • Handle: RePEc:rbs:ijbrss:v:5:y:2016:i:6:p:01-11
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    References listed on IDEAS

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    1. 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.
    2. Eroglu, Sevgin A. & Machleit, Karen A. & Davis, Lenita M., 2001. "Atmospheric qualities of online retailing: A conceptual model and implications," Journal of Business Research, Elsevier, vol. 54(2), pages 177-184, November.
    3. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    4. repec:eee:joinma:v:23:y:2009:i:2:p:179-190 is not listed on IDEAS
    5. Kotha, Suresh & Rajgopal, Shivaram & Rindova, Violina, 2001. "Reputation Building and Performance: An Empirical Analysis of the Top-50 Pure Internet Firms," European Management Journal, Elsevier, vol. 19(6), pages 571-586, December.
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