Appraisal of the potential of the growth of e-retailer based on impact of perceived value on trust for online purchases

Mujahid Mohiuddin Babu, Bidit Lal Dey

Research output: Contribution to journalArticle

Abstract

Customer satisfaction for online purchase and its subsequent influence on customer trust is a pivotal in the proliferation of online businesses that in turn can foster global and national economic growth. The significance of understanding perceived value in the context of online shopping is as important as is in the context of traditional shopping. However, relatively few studies investigate the role of perceived transaction value on customers’ online satisfaction and, to the best of our knowledge, very few studies have investigated its impact both on perceived satisfaction and trust in the context of online purchase. Moreover, converting customers’ satisfaction with the e-retailer into trust is significantly influenced and moderated by other customers’ opinion as well as the e-retailer’s intention to recover service failure, which received limited research attention. To address these issues, in this study, quantitative data were collected from customers, who have online shopping experience. The analysis, carried out using structural equation modelling, suggested that customers perceived acquisition value has a significant impact over their satisfaction which affect their trust with regard to an online retailer. Moreover, e-retailers’ intention of service recovery and online word of mouth is found to successfully moderate the relationship between customers’ perceived satisfaction and trust in the context of online purchase.
Original languageEnglish
Pages (from-to)477-487
Number of pages11
JournalStrategic Change
Volume27
Issue number5
Early online date31 Oct 2018
DOIs
Publication statusPublished - 2018

Bibliographical note

This is the peer reviewed version of the following article: Mohiuddin Babu, M & Dey, BL 2018, 'Appraisal of the potential of the growth of e-retailer based on impact of perceived value on trust for online purchases' Strategic Change, vol. 27, no. 5, pp. 477-487, which has been published in final form at https://dx.doi.org/10.1002/jsc.2232]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

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