Drivers of Brand Trust in Internet Retailing: The Case of Indonesia

Drivers of Brand Trust in Internet Retailing: The Case of Indonesia

Adilla Anggraeni (Binus Business School, Bina Nusantara University, Jakarta, Indonesia) and Florenz Lay (Binus Business School, Bina Nusantara University, Jakarta, Indonesia)
Copyright: © 2015 |Pages: 12
DOI: 10.4018/IJOM.2015100102
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Abstract

This study investigates the attributes that create brand trust in internet retailing through the replication of the work of Ruparelia, White and Hughes (2010) using two different purchase categories: apparels and travel accommodation. Quantitative methodology was employed through survey method involving 180 respondents. There are ten independent variables include website security, website privacy, website brand name, word-of-mouth, website design & navigation, information, returns policy, country of origin, past experience, advertising and testimonials and one dependent variable which is brand trust. Security, privacy, word of mouth, design & navigation, and past experience were proven to have direct linear effects towards web brand trust. On the other hand, brand name, information, returns policy, country of origin and advertising & testimonials have weak relationships with web brand trust. Respondents who purchased clothing apparel were more concerned of the country of origin than respondents who purchased ticket accommodation.
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2. Literature Review

2.1. E-Commerce

According to Miletsky (2010) electronic commerce is also known as e-commerce. It is the use of online websites for buying and selling product and service. E-commerce lesser used by B2B (Business to Business) and were used more in B2C (Business to Consumers).

Miletsky (2010) argues that there are several aspects that encourage demand to shop online. From the consumers’ perspective, convenience is one of the key factors that encourage most consumers to shop online, as online stores could be accessed from everywhere and at anytime. It is very convenient for working people as they could shop from home without a need to travel and waste their time.

Despite all the benefits, there are some drawbacks about online shopping (Miletsky, 2010). Payments are non-cash means that it is less secure as consumers personal identity and privacy could be figured out while making an online payment. Online transactions are less secure than physical transaction, therefore leading to a lack of trust. Firthermore, when buying online, the customers are not able to touch the product physically and check the quality of the product Lastly, there is a lack of assistance in online store (Miletsky, 2010).

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