Role of trusting beliefs in predicting purchase intentions

Abstract

Purpose India’s retail sector is going through a significant transitional period with the internet as a new distribution channel becoming more common. Given the barriers to adoption, the purpose of this paper is to understand the role played by trusting beliefs when engaging with an online retailer. In the Indian market, online vending is expected to increase at a rate of 35 per cent per annum, and by understanding trusting beliefs retailers will be able to develop their market share by developing appropriate and/or innovative strategies. Design/methodology/approach The work is based on a sample of more than 200 internet customers in India. In understanding the data and the relationships that emerged from the modelling, the authors used a range of tools to analyse the data, including CFA and structural equation modelling. The authors also used descriptive statistics to provide a holistic overview of response profiles. Findings The study reveals that trusting beliefs are negatively influenced by an uncertainty avoidance culture and positively influenced by a firm’s image and a customer’s price awareness. Moreover, purchase intentions (PIs) are significantly enhanced by trusting beliefs in an online environment. Hence, it leads us to conclude that PIs can be augmented by facilitating and ensuring good quality service by placing special emphasis on timeliness, accuracy and conditions of the order, security and privacy paradigms, aftersales services, etc. Research limitations/implications As can be seen, the internet is an emergent tool for retailers in India. By understanding trusting beliefs, retailers will be able to better understand customers’ behaviour and thus design management strategies accordingly. Although this is likely to take more than a decade, as internet retailing becomes embedded it may have a detrimental effect on the historical channel to market, thus altering the country’s retail landscape which is currently dominated by small retailers. Practical implications The work’s findings are insightful for those seeking to maximize the opportunities presented by the internet as a channel to market. The works shows how the channel is influenced and thus how it can be managed. In making the contribution the authors provide guidance in terms of operational activity to engage with potential customers. Originality/value This paper examines trusting beliefs when using the internet as a channel to market and in doing so it makes a new contribution because it establishes links with culture and other factors. For the research venue the authors use a developing market and therefore the findings are applicable to markets with similar characteristics.