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

The Mediating Role of Online Trust

Authors

DOI:

https://doi.org/10.20525/ijrbs.v5i6.539

Keywords:

Online Trust, Perceived Risk, Website Reputation, Purchase Intention

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.

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Published

2016-10-20

How to Cite

Tangmanee, C., & Rawsena, C. (2016). Direct and Indirect Effects of Perceived Risk and Website Reputation on Purchase Intention: The Mediating Role of Online Trust. International Journal of Research in Business and Social Science (2147- 4478), 5(6), 1–11. https://doi.org/10.20525/ijrbs.v5i6.539

Issue

Vol. 5 No. 6 (2016): October

Section

Articles

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Copyright (c) 2016 Chatpong Tangmanee, Chayanin Rawsena

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