Factors influencing Iranian consumers' trust in internet shopping

Abstract

Lack of trust in online companies is a primary reason why many web users do not shop online. This study examines consumers' perceptions of the Internet merchant, general perceptions of privacy and security of the Web, perceptions of the risks and benefits of online shopping in the Iran, and how these perceptions affect Iranian consumers' trust in Internet shopping. It also examined the effect of individual characteristics on consumers' decision to buy online and the factors that predict trust in online shopping. A sample of 625 individuals was surveyed using a previously validated measurement instrument that focused on a number of key constructs identified in the literature as potential trust predictors. The results show that the perceived risks have the strongest predictive value in terms of the formation of Iranian consumers' trust in online shopping. Similarly, perceived security protection and perceived reputation are also important predictors of Iranian consumer trust in internet shopping. Propensity to trust have a moderating effect on the relationship between trust in Internet shopping and the respondents' perceptions of the antecedents to trust. The findings of this research are of potential benefit to online vendors of all types who seek to engender consumer trust in their web sites.