Online Trust Determinants, Consumer Perception, and Purchase Intent in Saudi E-Commerce: Exploring Determinants and Evidence

(Majed A. Helmi, Sager Alharthi and Sufyan Habib)

---

Abstract

This study aimed to explore the growing use of the internet as a commercial sales channel, emphasising the pivotal role of trust in online consumer relationships. This research focused on Saudi e-commerce platforms (e.g. Amazon.sa, Noon, Namshi, and Shein), due to their remarkable growth over previous years, by investigating the effect of consumer trust on online purchase intentions. The study surveyed 449 Saudi online shoppers, using a structural equation model to analyse the factors that determine online trust (perceived information quality, company competency, security, and online consumer reviews) and their influence on consumer online trust and perceived risk. The results revealed significant relationships between consumer online trust and perceived information quality, company competency, and security, challenging expectations regarding the link between online consumer reviews and consumer online trust. Surprisingly, online consumer reviews primarily influenced perceived risk rather than consumer online trust, impacting purchase intention to a limited extent. The research underscores the substantial influence of consumer online trust on perceived risk and purchase intention, offering micro perspectives on online consumer behaviour. By identifying key influences, including information quality and security, this study provides theoretical and managerial insights for e-commerce platforms, guiding the development of responsible online channels.
KEYWORDS
company competency, consumer reviews, e-commerce antecedents, information quality, perceived security, Saudi consumers

PDF

References

Al Hamli, S.S. and Sobaih, A.E.E. (2023). Factors influencing consumer behavior towards online shopping in Saudi Arabia amid Covid-19: implications for e-businesses post pandemic. Journal of Risk and Financial Management, 16(1), 1–21. DOI:10.3390/jrfm16010036
Alanmi, M. and Alharthi, S. (2023). The impact of digital marketing on consumer buying behavior in Saudi Arabia: Brand popularity as a mediator. Journal of Business and Management Review, 4(6), 412–38. DOI:10.47153/jbmr46.6552023
Alkhalil, B. and Siddiqui, M. (2018). Factors affecting Saudi consumer trust in e-commerce: A quantitative analysis. International Journal of Computer Applications, n/a(182), 41–5. DOI:10.5120/ijca2018918102
An, S., Eck, T. and Yim, H. (2023). Understanding consumers’ acceptance intention to use mobile food delivery applications through an extended technology acceptance model. Sustainability, 15(1), 1–14. DOI:10.3390/su15010832
Aslam, W., Hussain, A., Farhat, K. and Arif, I. (2020). Underlying factors influencing consumers’ trust and loyalty in E-commerce. Business Perspectives and Research, 8(2), 186–204. DOI:10.1177/2278533719887451
Attar, R.W., Shanmugam, M. and Hajli, N. (2021). Investigating the antecedents of e-commerce satisfaction in social commerce context. British Food Journal, 123(3), 849–68. DOI:10.1108/bfj-08-2020-0755
Azam, A., Qiang, P.F. and Abdullah, M.I. (2012). Consumers’ E-commerce acceptance model: Antecedents of trust and satisfaction constructs. IEEE Business, Engineering and Industrial Applications Colloquium (BEIAC), 1(1), 371–6. DOI:10.1109/BEIAC.2012.6226086
Chen, W., Gu, B., Ye, Q. and Zhu, K.X. (2019). Measuring and managing the externality of managerial responses to online customer reviews. Information Systems Research, 30(1), 81–96. DOI:10.2139/ssrn.1639683
Cheung, C.M.K. and Lee, M.K.O. (2012). What drives consumers to spread electronic word of mouth in online consumer-opinion platforms. Decision Support Systems, 53(1), 218–25. DOI:10.1016/j.dss.2012.01.015
Creswell, J.W. and Creswell, J.D. (2017). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. California: SAGE Publications.
Darmawan, D. and Gatheru, J. (2021). Understanding Impulsive Buying Behavior in Marketplace. Journal of Social Science Studies (JOS3), 1(1), 11–8. DOI:10.56348/jos3.v1i1.2
Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–40. DOI:10.2307/249008
Featherman, M. and Pavlou, P. (2003). Predicting E-Services Adoption: A Perceived Risk Facets Perspective. International Journal of Human-Computer Studies, 59(4), 451-474. DOI:10.1016/S1071-5819(03)00111-3
Flavián, C. and Guinalíu, M. (2006). Consumer trust, perceived security and privacy policy: Three basic elements of loyalty to a web site. Industrial Management & Data Systems, 106(5), 601-620. DOI:10.1108/02635570610666403
Fu Tsang, N.K., Lai, M.T. and Law, R. (2010). Measuring e-service quality for online travel agencies. Journal of Travel and Tourism Marketing, 27(3), 306–23. DOI:10.1080/10548401003744743
Gefen, D., Benbasat, I. and Pavlou, P. (2011). A Research agenda for trust in online environments. Journal of Management Information Systems, 24(4), 275–86. DOI:10.2753/MIS0742-1222240411
Ginting, E., Rubiyanti, N. and Pradana, M. (2022). The effect of social commerce construct on consumer trust and purchase intention (Study on Shopee e-commerce users in Indonesia). In: Proceedings of the 3rd African International Conference on Industrial Engineering and Operations Management IEOM. DOI:10.46254/AF03.20220172
Grabner-Kräuter, S. and Kaluscha, E.A. (2003). Empirical research in on-line trust: A review and critical assessment. International Journal of Human-Computer Studies, 58(6), 783–812. DOI:10.1016/S1071-5819(03)00043-0
Hong, I.B. (2015). Understanding the consumer’s online merchant selection process: The roles of product involvement, perceived risk, and trust expectation. International Journal of Information Management, 35(3), 322–36. DOI:10.1016/j.ijinfomgt.2015.01.003
Huang, S.L. and Chang, Y.C. (2019). Cross-border e-commerce: Consumers’ intention to shop on foreign websites. Internet Research, 29(6), 1256–79. DOI:10.1108/intr-11-2017-0428
IMARC Group. (2023). Saudi Arabia E-commerce Market Report by Type (B2C E-commerce, B2B E-commerce), and Region 2024-2032. Available at: https://www.imarcgroup.com/saudi-arabia-e-commerce-market (accessed on 22/01/2024)
Kang, M., Sun, B., Liang, T. and Mao, H.-Y. (2022). A study on the influence of online reviews of new products on consumers’ purchase decisions: An empirical study on JD.com. Frontiers in Psychology, 13(n/a), n/a. DOI:10.3389/fpsyg.2022.983060
Kimiagari, S. and Malafe, N.S.A. (2021). The role of cognitive and affective responses in the relationship between internal and external stimuli on online impulse buying behavior. Journal of Retailing and Consumer Services, 61(n/a), 102567. DOI:10.1016/j.jretconser.2021.102567
Mahliza, F. (2020). Consumer trust in online purchase decision. EPRA International Journal of Multidisciplinary Research (IJMR), 6(2), 142–9. DOI:10.36713/epra4022
Matemba, E.D. and Li, G. (2018). Consumers’ willingness to adopt and use WeChat wallet: An empirical study in South Africa. Technology in Society, 53(n/a), 55–68. DOI:10.1016/j.techsoc.2017.12.001
Mayer, R.C., Davis, J.H. and Schoorman, F.D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–34. DOI:10.5465/amr.1995.9508080335
McKnight, D.H., Choudhury, V. and Kacmar, C. (2002). Developing and Validating Trust Measures for e-Commerce: An Integrative Typology. Information Systems Research, 13(3), 334–59. DOI:10.1287/isre.13.3.334.81
Mittal, A. (2013). E-commerce: It’s Impact on consumer Behavior. Global Journal of Management and Business Studies, 3(2), 131–8.
Müller, J.M., Buliga, O. and Voigt, K.I. (2021). The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models-A comparison between SMEs and large enterprises. European Management Journal, 39(3), 333–43. DOI:10.1016/j.emj.2020.01.002
Othman, A.K. (2021). The mediating role of customer trust in affecting the relationship between online shopping factors and customer purchase decision. Journal of Information Technology Management, 13(3), 141–59. DOI:10.22059/jitm.2021.83234
Pennington, R., Wilcox, H.D. and Grover, V. (2003). The role of system trust in business-to-consumer transactions. Journal of Management Information Systems, 20(3), 197–226. DOI:10.1080/07421222.2003.11045777
Rogers, E.M. (1995). Diffusion of Innovations: Modifications of a Model for Telecommunications. Die Diffusion von Innovationen in Der Telekommunikation, n/a(n/a), 25–38. DOI:10.1007/978-3-642-79868-9_2
Roy, G., Basu, R. and Ray, S. (2023). Antecedents of online purchase intention among ageing consumers. Global Business Review, 24(5), 1041–57. DOI:10.1177/0972150920922010
Sarkar, S., Chauhan, S. and Khare, A. (2020). A meta-analysis of antecedents and consequences of trust in mobile commerce. International Journal of Information Management, 50(n/a), 286–301. DOI:10.1016/j.ijinfomgt.2019.08.008
Smith, J., Johnson, M. and Williams, A. (2019). Building trust in e-commerce: Exploring the influence of website design elements on initial trust formation. Journal of Organizational and End User Computing (JOEUC), 31(n/a), 52–72.
Statista. (2022). E-Commerce Market Capitalization and Forecast during Covid-19 Saudi Arabia 2017-2024. Available at: https://www.statista.com/statistics/1133023/saudi-arabia-e-commerce-market-capitalization-covid-19/ (accessed on 22/01/2024)
Suprapto, B., Wicaksana, P.D. and Sam, M.F.M. (2022). Determinants of online trust and their impact on online purchase intention in yogyakarta. International Journal of Industrial Engineering, 33(3), 1–9. DOI:10.22068/ijiepr.33.3.8
Trivedi, S.K. and Yadav, M. (2020). Repurchase intentions in Y generation: Mediation of trust and e-satisfaction. Marketing Intelligence and Planning, 38(4), 401–15. DOI:10.1108/mip-02-2019-0072
Tseng, S.Y. and Wang, C.N. (2016). Perceived risk influence on dual-route information adoption processes on travel websites. Journal of Business Research, 69(6), 2289–96. DOI:10.1016/j.jbusres.2015.12.044
Venkatesh, V., Thong, J.Y.L. and Xu, X. (2012). Consumer acceptance and Use of Information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, 36(1), 157–78. DOI:10.2307/41410412
Ventre, I. and Kolbe, D. (2020). The Impact of Perceived Usefulness of Online Reviews, Trust and Perceived Risk on Online Purchase Intention in Emerging Markets: A Mexican Perspective. Journal of International Consumer Marketing, 32(4), 287-299. DOI: 10.1080/08961530.2020.1712293
Zheng, L. (2021). The classification of online consumer reviews: A systematic literature review and integrative framework. Journal of Business Research, 135(n/a), 226–51. DOI:10.1016/j.jbusres.2021.06.038