The Impact of Customers’ Direct and Indirect Experience on E-Trust

Abstract

Despite the rapid growth of e-commerce, online users are still cautious and skeptical about online shopping. The uncertainty inherent in online shopping impedes customers’ online transactions. Previous research emphasized the significance of customer experience management and its influence on e-tailers’ success, mainly focusing on customers’ direct experience with e-tailers. The purpose of this study is to investigate the impact of customers’ indirect experience as well as direct experience on their perception of e-tailers’ trustworthiness and their behavioral outcomes drawing on the equity theory. Specifically, this study posits that customers’ direct experience (perceived quality of site design and flow) and indirect experience (reputation) with e-tailers contribute to their perception of e-tailers’ trustworthiness, which in turn influences their intention to repurchase from and spread positive word-of-mouth about the e-tailers. The results support the proposed relationships of customers’ direct and indirect experience, except for the relationship between flow and e-trust. Customers’ perceived quality of site design (direct experience) and e-tailers’ reputation (indirect experience) positively influence customers’ e-trust, whch in turn significantly contributes to their intention to repurchase and spread positive word of mouth. Theoretical and practical implications are discussed.