Factors affecting trust towards online retailers in India: an empirical study

Abstract

Loyal customers are considered extremely valuable to any organisation. In order to attain customer loyalty, online retailers should take major steps that will enhance repeat purchase behaviour. The current research examines the impact of satisfaction with previous interactions, perceived website quality, security and privacy policy, and online retailer credibility on trust towards online retailers. Then the relationship between consumer trust and loyalty intention was studied. The hypothesised model is validated empirically using data collected from 334 consumers. The data were analysed using exploratory factor analysis, correlations analysis, confirmatory factor analysis and regression analysis. The results indicated that consumers' perception of website quality and online retailer's credibility have strong positive effect on consumer trust. Consumer satisfaction due to previous interaction with an online retailer also directly affects trust. Data further demonstrated that security and privacy policy directly influence consumer trust. In the study, trust is found to directly affect loyalty intention. The study adds to the understanding of the antecedents and consequences of consumer trust in the online shopping environment. Managerial implications and suggestions for further research are provided.