Abstract
Even though e-commerce business grows rapidly, still building customer trust on e-commerce becomes more difficult than building customer trust on physical store. This study aims to identify factors that influence customer trust on e-commerce, to compare how important those factors in influencing customer trust and furthermore, to assess how important customer trust for purchase and word of mouth intention. This study combines TOE (Technology, Organizational and Environment) and TPE (Technology, Personal and Environment) framework as reference models used in hypotheses modeling. This research uses quantitative study by conducting survey and accordingly distributing questionnaires to e-commerce users, thus obtaining 151 respondents. The result of this study showed the most essential factors that influence customer trust on e-commerce are web quality and vendor image. This study also revealed that customer trust has positive and significant impact to customer intention to purchase and word of mouth intention.
Highlights
Even though e-commerce business grows rapidly, still building customer trust on e-commerce becomes more difficult than building customer trust on physical store
This study aims to identify factors that influence customer trust on e-commerce, to compare how important those factors in influencing customer trust and to assess how important customer trust for purchase and word of mouth intention
This study revealed that customer trust has positive and significant impact to customer intention to purchase and word of mouth intention
Summary
Even though e-commerce business grows rapidly, still building customer trust on e-commerce becomes more difficult than building customer trust on physical store. This study revealed that customer trust has positive and significant impact to customer intention to purchase and word of mouth intention. It has been long time ago since Indonesia is famous as potential country to perform commercial business due to its strategic position geographically. Because of the wide market potential, there are many entrepreneur and businessman starting up a business in Indonesia. This situation increases the competition that leads them to think a creative way by making better innovation for their products or services offered, as well as for the process model performed. It is important to build a strategy for customer retention for company sustainability (D’Ambra and Xiao, 2010)
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