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

Chatpong Tangmanee and Chayanin Rawsena
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Chatpong Tangmanee: Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand
Chayanin Rawsena: Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand

International Journal of Research in Business and Social Science (2147-4478), 2016, vol. 5, issue 6, 01-11

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

Date: 2016
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Citations: View citations in EconPapers (5)

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