Which is more important in Internet shopping, perceived price or trust?

Hee Woong Kim, Yunjie Xu, Sumeet Gupta

Research output: Contribution to journalArticle

184 Citations (Scopus)

Abstract

Price and trust are considered to be two important factors that influence customer purchasing decisions in Internet shopping. This paper examines the relative influence they have on online purchasing decisions for both potential and repeat customers. The knowledge of their relative impacts and changes in their relative roles over customer transaction experience is useful in developing customized sales strategies to target different groups of customers. The results of this study revealed that perceived trust exerted a stronger effect than perceived price on purchase intentions for both potential and repeat customers of an online store. The results also revealed that perceived price exerted a stronger influence on purchase decisions of repeat customers as compared to that of potential customers. Perceived trust exerted a stronger influence on purchase decisions of potential customers as compared to that of repeat customers.

Original languageEnglish
Pages (from-to)241-252
Number of pages12
JournalElectronic Commerce Research and Applications
Volume11
Issue number3
DOIs
Publication statusPublished - 2012 May 1

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All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Computer Networks and Communications
  • Marketing
  • Management of Technology and Innovation

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