Initial trust and online buyer behaviour

Purpose – Online trust is one of the key obstacles to vendors succeeding on the internet medium; a lack of trust is likely to discourage online consumers from participating in e-commerce. This research aims to investigate how online consumers develop their initial trust and purchase intentions. The research in conducted in the context of Taiwanese online bookstores.

Design/methodology/approach – The research examines consumers' online initial trust by using four major categories of determinants: perceived technology, perceived risk, company competency, and trust propensity. It also investigates the impacts of both online initial trust and familiarity with online purchasing on purchase intention. The research model is statistically tested using the web sites of four online bookstores in Taiwan. The web site selected by each respondent is unfamiliar.

Findings – It is found that perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise are the important antecedents to online initial trust. It is also discovered that different levels of trust propensity moderate perceptions toward the web site and online with respect to online initial trust, including perceived usefulness, perceived security, perceived privacy, perceived good reputation, and willingness to customise. Both online initial trust and familiarity with online purchasing have a positive impact on purchase intention.

Originality/value – The research provides insight into the development of online initial trust by consumers, and the relationships between online initial trust and purchase intention. The research model was created and then tested in the context of online bookshops in Taiwan.