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

Published: 01 May 2012 Publication History

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.

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    Published In

    cover image Electronic Commerce Research and Applications
    Electronic Commerce Research and Applications  Volume 11, Issue 3
    May, 2012
    105 pages

    Publisher

    Elsevier Science Publishers B. V.

    Netherlands

    Publication History

    Published: 01 May 2012

    Author Tags

    1. Internet shopping
    2. Mental accounting theory
    3. Online purchase decision making
    4. Perceived price
    5. Perceived trust

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    • (2023)How Pricing and Ratings Affect Perceived Value of Digital Detox AppsExtended Abstracts of the 2023 CHI Conference on Human Factors in Computing Systems10.1145/3544549.3585681(1-7)Online publication date: 19-Apr-2023
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