Conceptualizing consumer “trust” in online buying behaviour: an empirical inquiry and model development in Indian context
| Date | 02 August 2013 |
| DOI | https://doi.org/10.1108/JABS-Jul-2011-0038 |
| Pages | 278-298 |
| Published date | 02 August 2013 |
| Author | Sangeeta Sahney,Koustab Ghosh,Archana Shrivastava |
| Subject Matter | Strategy |
Conceptualizing consumer ‘‘trust’’ in online
buying behaviour: an empirical inquiry and
model development in Indian context
Sangeeta Sahney, Koustab Ghosh and Archana Shrivastava
Abstract
Purpose – India has a large internet savvy population that is not only accessing the internet but also
buying online. With a revolution in the very basics of transaction from a physical store format to a
non-store one, the retail industry has begun to understand the indispensability of the internet as a
medium of transaction. However, the rate of diffusion and adoption of the new phenomenon amongst
consumers is still relatively low. Trust on online transactions is one of the key barriers to vendors
succeeding in online transactions. A lack of trust discourages consumers from participating in online
buying. With the internet advancing new opportunities, it is important to understand the factors that
generate trust of Indian consumers in the online buying system. The purpose of this paper is to explore
the determinants of trust in online buying behavior of consumers. This paper is a theoretical attempt at
conceptualizing ‘‘trust’’ as a construct, in the context of online buying and testing it empirically. The
objective of the study is to explore the critical online trust-creating factors that influence the online
buying decision of people, and to establish their causal impact, if any, through developing an
integrated model.
Design/methodology/approach – The study, descriptive, diagnostic, and causal in nature, was
conducted in the context of online buying of railway tickets in India. In the first phase, a pilot survey was
conducted on a sample of 100 users of the online railway reservation. After having tested the survey
instrument for validity and reliability, the secondphase of the study was conducted on a sample of 327
users of online railway reservation facilities. A series of multiple regressions analyses was conducted to
determine the causal impacts of critical consumer trust parameters on online reservation of railway
tickets by users in the Indian context. The analysis of demographics based on gender and age groups
was also made to capture the cross-comparisons of critical online trust-related attributes.
Findings – The factor analysis had grouped the items into four constructs with a total of 11 items. The
item total correlations to each construct were found significant. All the critical online trust based
constructs were found to have a significant impact on the intention of buyers of booking/purchasing
railway tickets online in India. The analyses of demographics established that all the critical consumer
trust-based attributes to online buying intention have no significant differences for gender,whereas for
age groups some of the attributes were found significant and others were not.
Research limitations/implications – The process of online trust formation among the potential buyers
depends on a host of factors. This present study has only explored a select number of constructs and
remains a major limitation. Notwithstandingthis limitation, there are significant theoretical implications for
critical online trust constructs of consumers on online buying behavior in the Indian context.
Originality/value – By examining the various dimensions explored and established in this study, the
concerned authority can develop a better understanding of consumer needs and expectations.
Academicians and researchers can use this study for assessing consumer trust towards online
reservation of railway tickets in the Indian context, and identifying such attributes that would lead to the
generation of online consumer trust towards online reservation of railway tickets. It provides insight into
the impact of trust in online buying and the relationship between trust and buying behaviour.The policy
decision makers of railway authority may also use the findings of this study as a resource, while
constructing, managing, and evaluating their marketing strategies in the Indian context.
Keywords Consumer behaviour, Internet, Trust,Buying behaviour, India, Online buying
Paper type Research paper
PAGE 278
j
JOURNAL OF ASIA BUSINESS STUDIES
j
VOL. 7 NO. 3 2013, pp. 278-298, QEmerald Group Publishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-Jul-2011-0038
Sangeeta Sahney is based
at the Vinod Gupta School
of Management, Indian
Institute of Technology,
Kharagpur, India.
Koustab Ghosh is based at
the Calcutta Business
School, Kolkata, India.
Archana Shrivastava is
based at the NYSS Institute
of Management and
Research, Maharashtra,
India.
Received 30 July 2011
Revised 30 April 2012
11 December 2012
Accepted 6 March 2013
Introduction
The rapid growth of the internet over the past two decades, as a platform for buyer-seller
interaction, constituting a well-practiced dyad, is indicative of the degree of acceptance of
an online transaction. With the emergence of e-commerce there has been a considerable
increase in online transactions. Online shopping could be defined as the concept of buying
and selling of goods over the internet. From the perspective of the seller, it is the attempt on
the seller’s part to attract and persu ade the prospect to conduct th e purchase
decision-making process, and ensure satisfaction and loyalty. From the perspective of the
buyer, online purchase behavior is the degree to which consumers access, browse, shop
and transact and repeat the behavior. With achange in the consumers’ mindset of purchase
made from a physical store to online buying, the industry has witnessed the ever-increasing
volumes of online transactions. Bakos (1991), describes an e-market as ‘‘... an
inter-organizational information system that allows the participating buyers and sellers to
exchange information about prices and product offerings’’. Meuter et al. (2000) have defined
e-retailing in terms of the internet market as ‘‘a virtual realm where products and services
exist as digital information and can be delivered through information-based channels’’.
Jones et al. (2000) said ‘ ‘ . . . carrying out ofretailing activitieswith customers that leads to an
exchange of value, where the parties interact electronically, using network or
telecommunications technologies’’. We may define online-retailing as use of an electronic
via media through which the customer and the marketer may enter into a transaction for sale
and purchase, so as to benefit both the parties in the long run. The rapid usage rate of
buyers transacting online has been due to advances in technology, to consumer
characteristics (both demographic as well as psychographic) and to situational influences.
While the customers of today, driven by functional and hedonic motives, like to search the
internet and search products and services, they often find themselves with a sense of
discomfort, apprehension and skepticism when it comes down to the actual physical and
monetary exchange. The basic underlying issue here is the lack of trust, especially with
regard to financial and personal information. Trustis a feeling of mutual acceptance between
two parties; it develops out of continuous physical interaction and leads to long-term
acceptance and commitment. So the important issue that needs to be addressed is ‘‘trust’’
among the seller-buyer, the lack of which often acts as an impediment in the trial and
adoption of the virtual market concept (Lee and Turban, 2001; Monsuwe’ et al., 2004). As has
been remarked by Ang and Lee (2000), ‘‘if the web site does not lead the consumer to
believe that the merchant is trustworthy, no purchase decision will result’’. It is also widely
agreed that if online trust can be understood, developed and maintained by the marketer, it
would act as a precursor to online buying and the number of online buyers would increase
considerably (Wang and Emurian, 2005). Goodwin (1996), rightly remarks that trust ‘‘is the
grease that keeps the wheels turning’’. Online buying and selling necessitate customer trust
(Lee and Turban, 2001; McCole and Palmer, 2001). This highlights the importance of
building consumer trust and maintaining relationships. Online trust is an important
determinant for the success of online transactions (McKnight and Chervany, 2001;
Balasubramanian et al., 2003; Koufaris and Hampton-Sosa, 2004). The lack of trust in online
security and policy, reliability of a company and web site technology play major roles in
consumers’ buying intentions. With the lack of physical interactivity between the buyer and
the seller in this new system, it is imperative that organizations today re-orient themselves
towards creation and adoption of newer approaches for building and maintaining trust and
managing relationships for online transactions.
Online retailers need to understand the basic issues that would help develop trust among
buyers in the online buying process. This paper is an attempt to conceptualize ‘‘trust’’, as a
concept against the backdrop of ‘‘online buying’’. The paper starts with the concept of trust,
then goes on to explain the concept against the background of online buying. Thereafter, the
determinants of online trust have been conceptualized and explained.
The paper elaborates on the factors that create trust in consumers, leading them to buy
online; thereafter a conceptual framework and model are presented, with a detailed account
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