Lòng tin và hành vi mua của người tiêu dùng trực tuyến tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING
HO CHI MINH CITY OPEN UNIVERSITY
-------------

LE NGUYEN BINH MINH

TRUST AND CONSUMERS’ BUYING BEHAVIOR ON INTERNET

Major: Marketing/Business Management
Code : 62 34 01 02

DOCTORAL THESIS IN BUSINESS MANAGEMENT

Hochiminh city, 2020



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The dissertation was completed at:
HO CHI MINH CITY OPEN UNIVERSITY.
Supervisor: Associate Professor Hoang Thi Phuong Thao, Ph.D

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This doctoral thesis will be defended at the Examination Committee at:
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This dissertation can be found at:
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AUTHOR’S PUBLICATIONS RELATED TO THIS DISSERTATION

1.
Le Nguyen Binh Minh & Hoang Thi Phuong Thao (2020), Measuring Trusts And The
Effects On The Consumers’ Buying Behavior, Journal of Distribution Science, 18(3), 5-14.
2.
Le, Nguyen Binh Minh Le & Hoang, Thi Phuong Thao (2020), Online Buying
Behaviors on E-Retailer Websites in Vietnam: The Differences in the Initial Purchase and
Repurchase, In Solanki, V.K., Hoang, M.K., Lu, Z.J., Pattnaik, P.K. (Eds.) Advances in
Intelligent Systems and Computing: Intelligent Computing in Engineering, Springer, 845851.
3.
Tran Van Hung, Le Nguyen Binh Minh & Vo Thi Ngoc Lien, (2020), Factors affecting
the confidence of online shoppers on e-commerce platforms in Vietnam, Economic Research,
500 (1), 19-27. (Vietnamese)
4.

Hoang Thi Phuong Thao & Le Nguyen Binh Minh (2019), The Relationship of
Reputation, Risk Perception, Online Consumer Trust and Shopping Behavior, Economic
Research, 498 (11), 38-48. (Vietnamese)
5.
Le Nguyen Binh Minh & Hoang Thi Phuong Thao (2019), Online Buying Behaviors
on E-Retailer Websites in Vietnam: The Differences in the Initial Purchase and Repurchase,
The 4th International Conference on Research in Intelligent and Computing in Engineering
(RICE 2019).
6.
Le Nguyen Binh Minh (2018), E-commerce and consumer spending behavior on
Vietnam's retail websites, Binh Duong Economics-Technology, 23, 72-79. (Vietnamese)
7.
Le Nguyen Binh Minh & Tu Minh Khai (2018), The influence of trust on buying
behavior on retail websites in Vietnam, Journal of Industry and Trade, 11, 372-379.
(Vietnamese)
8.
Le Nguyen Binh Minh & Hoang Thi Phuong Thao (2017), How Trust Affects
Vietnamese Consumers Purchasing Behavior at E-retailer, The 2nd International Conference
on Business with Leading and Innovating Sustainable Business Development, Open
University, Hochiminh City.


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CHAPTER 1: INTRODUCTION
1.1. Theoretical and Practical Foundations
1.1.1. E-commerce at a glance
Vietnam is considered to be one of the countries with the highest growth of internet users in
the world (28%, ranked 4th) (Wearesocial, 2018). Vietnam has a population of 95 million, of
which 50 million are internet users with an average daily internet access time of 6 hours 53

minutes on computers, laptops, and tablets, and 2 hours 33 minutes on mobile phones while
spending only 1 hour 26 minutes watching television (Wearesocial, 2017). Also according to
Wearesocial (2017), the total value of Vietnam's e-commerce industry in 2016 reached (US)$
1.8 billion, and revenue per consumer is estimated at (US)$ 55. Currently, the number of
online consumers in Vietnam is about 33 million, accounting for 35% of Vietnam's
population; therefore, the market capacity is still very large which will be a great opportunity
for e-commerce and online retail industry to increase growth in the future (Wearesocial,
2017).

1.1.2. Theoretical perspective
Although e-commerce has much special potential in the retail industry, it also has many
barriers that need to be overcome. The study was done by Hoang and Swierczek (2008) stating
that Vietnam's market still has many barriers related to laws, regulations, payment systems,
security technologies, risks, scams, and technology crimes. Moreover, according to previous
studies, trust is an important factor that encourage consumers to make their purchases in the
internet environment (Corbitt, Thanasankit, and Yi, 2003; Ho and Chen, 2013).
Some authors argue that to succeed in Internet-based business, online retailers need to build
and maintain customer trust (Pappas, 2016; Pavlou and Fygenson, 2006; Suh and Han, 2003;
Vos et al., 2014). While, other authors found negative impacts of perceived risks on
purchasing decisions (Hong and Cha, 2013; Kamarulzaman, 2007) related to products (Ward
and Lee, 2000) and retailers' websites (Jiang, Jones, and Javie, 2008). Thus, how the concepts
of trust and perceived risk will interact and affect buyers, to answer this question, more
research is needed to understand the relationship between consumer trust, perceived risk, and
buying behavior. Besides, the results of this research will help online retailers strategically
cope with consumers' trust and perceived risks effectively.

1.1.3. Background to the research
Currently, studies on trust have not been consistent. The concept of trust is often measured as
a general and simple construct while only a few studies measure this concept as higher order
construct. Although many studies suggest that the concept of trust is a multi-dimensional

construct and complex but few studies argue and develop this construct explicitly, as well as
the mechanism of its formation in the online environment in Vietnam. The reason to
reconsider measuring this concept is that an inadequate measurement will not capture the


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concept correctly. This study is based on theoretical arguments, empirical studies, and
qualitative research to develop scale of measurement for the construct of trust. Moreover,
many studies have only stopped at measuring initial or ongoing trust, but few studies
measured both stages to see the impact of trust and perceived risk on buying behavior. The
findings in prior research are varied in term of the relationship among perceived risk, trust
and buying behavior in the context of online shopping.
In addition, many e-commerce studies measure consumer buying intention while only a few
evaluate consumer buying behavior. This study proposes to measure buying behavior in two
forms, (1) considering the purchase behavior as a latent concept embodied in various
observable and measurable behaviors (such as placing an order, confirming orders, etc.),
measuring through statements and Likert scales, (2) considering the purchase behavior as a
simple action of making a purchase therefore, it is considered the value of the order of a
product (or many products) to be a scale. The values are then transferred to the Likert scale
to measure in a structural equation model. The results of these two approaches will be
compared and contrasted in this thesis.

1.2. Problem statement
The concept of trust has been studied in many different areas and aspects such as social
exchange, organizational behavior, communication, strategic alliance, and service marketing
(Morgan and Hunt, 1994). The thesis continues to explore trust in marketing and consider its
impact on the online shopping behavior of consumers. This concept is also being focused by
researchers due to the complexity of different beliefs and opinions in approaching it. Several
studies indicate that the concept of trust should be approached in a process with different
stages (Johns, 1996; Kim, 2012). Accordingly, trust is divided into two situations, namely

"initial trust" and "ongoing trust". Initial trust is a concept that indicates a customer generating
trust with a retailer without prior experience in interaction or with the partner's product or
service (primary information) (Kim, 2012; McKnight, Cummings, and Chervany, 1998) but
relying heavily on other information to build trusts such as reputation, structural assurance,
warranty policies, third party guarantees (secondary sources) and propensity to trust. Ongoing
trust, on the other hand, is built on different bases which depend primarily on the experience
and prior interactions (primary sources) to evaluate the retailer's competence, benevolence
and integrity. Ongoing trust will be gained after the customers make their first purchase.
Although many studies suggest that the concept of trust is complex and difficult to measure
but few studies argue and understand the formation of this concept explicitly, as well as the
mechanism of its formation in the online environment in Vietnam. The reason why it is
necessary to reconsider the measurement of this construct is that an inadequate measurement
will not capture the concept correctly. The author based on theoretical arguments, empirical
studies, and qualitative research to develop scale of measurement for the construct of trust.
Moreover, many studies have only stopped at measuring initial or ongoing trust, but few
studies measured both stages to see the impact of trust and perceived risk on buying behavior;


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and there is still much controversy about whether to include both the risk factor and trust in
measuring online purchasing behavior. In addition, measuring the purchasing behavior of
online consumers instead of their purchasing intention is also a new and meaningful
contribution.
This study will approach the concept of trust as a dynamic construct, going from the initial
trust formation stage to the ongoing trust to see its impact on consumer purchasing decisions.
That means the initial trust induces customers to trust and buy for the first time, then it
continues and lead to repeat purchases. The components of trust will be explored and
measured as well as provide a model whereby we can see the effect of trust on the online
purchase behavior of consumers.

1.3. Research Questions and Research Objectives
1.3.1. Research objectives
The objectives of the research are:
(1) To identify factors from retailer’s website that affects consumer’s trust;
(2) To analyze components of consumer’s trust (initial trust and ongoing trust);
(3) To identify perceived risk that affects consumer’s trust in online shopping;
(4) To examine the relationship between trust (initial trust and ongoing trust) and buying
behavior (first purchase and repeat purchase), between trust and customer satisfaction,
as well as between buying behavior and customer satisfaction;
(5) To explore the moderating effects of gender, uncertainty avoidance, and experience on
the relationship between perceived risk and initial purchase and between consumer’s
trust and initial purchase;
(6) To give recommendations for e-retailers in building consumer’s trust and eventually
affects buying behavior and customer satisfaction;

1.3.2. Research questions
Research questions:
(1) Which factors from retailer’s website that affects consumer’s trust?
(2) What are the components of consumer’s trust?
(3) Does perceived risk affects consumer’s trust in online shopping?
(4) Is there any relationship exist between trust (initial trust and ongoing trust) and buying
behavior (first purchase and repeat purchase), between trust and customer satisfaction,
as well as between buying behavior and customer satisfaction;
(5) Is there any moderating effects of gender, uncertainty avoidance, and experience on
the relationship between perceived risk and initial purchase and between consumer’s
trust and initial purchase;
(6) Is there any recommendation for e-retailers in building consumer’s trust and support
for buying behavior and customer satisfaction;

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1.4. Delimitations of scope
1.4.1. Research problem
The object of the research is the impact of online consumer trust on buying behavior on the
retailers’ website using different forms of payment (online payment or cash-on-delivery
(COD)). Thus, the unit of analysis will be consumers who buy products online (B2C model)
via the retailer's website. In this research, the author focuses on products offered on popular
e-commerce websites.

1.4.2. Scope of research
The research focuses on online buying behavior with common items traded by e-commerce
websites (consumer goods, household appliances, electronics, electronics, and fashion, etc.).
Moreover, it collects data from people who go shopping on popular websites such as Tiki,
Lazada, Adayroi, Shopee.
This research study the online customer trust with e-retailers who selling popular items online
in Vietnam. The studied companies are those with a website offering consumer goods (B2C)
and the studied customers are those with shopping experience on these websites. These
transactions history can be retrieved from their account database and buyers can access this
information to respond, and the target participant is one who directly conducts the search and
buy items on the website.
Based on results from qualitative research, the author builds models, scales, and
questionnaires to survey and re-examine the relationships and the effects of factors on trust in
customers’ purchasing decisions.
In terms of time, the topic will focus mainly on customers who have purchased online in the
last 2 years. The customers with the first purchase and repeat purchase within 3 months are
interviewed so that the respondents can remember and describe exactly their feelings when
they made the first purchase.

1.5. Research issues contribution

1.5.1. Theoretical contribution
First, this research reviews the theory of trust, risk, consumer behavior and suggesting that
measuring the concept of trust is a multidimensional construct consisting of two components:
trusting beliefs and trusting intention, in which trust beliefs includes 3 other components:
competence, benevolence and integrity.
Second, the author discovers the change of consumer trust over time (before and after
purchase). The initial trust and ongoing trust is distinguished by the buying behavior of
consumers.


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Third, this research measures buying behavior instead of buying intention. In this study, the
buying behavior is measured as a latent construct and through order values, then results of
these two measures are compared and contrasted.
Fourth, this thesis explores the initial buying behavior and repeat buying behavior which takes
into account the impact of other concepts on the first purchase and repeat purchasing process
on the internet. Compare the average value of first-time orders and repeated orders. Other
concepts that influence trust and buying behavior in this research are website quality
(information, design, navigation), risk perception, reputation, and satisfaction.
Fifth, the research identifies the outstanding points of price in the first and repeat purchases.
Lastly, the author explores the moderating impact of personal traits such as gender,
uncertainty avoidance, and online shopping experience in the relationship between trust and
first purchase and between perceived risk and first purchase.

1.5.2. Practical contribution
The topic provides useful information for online retailers for better understanding the role of
consumer trust and thereby have sufficient solutions in building and strengthening customers'
trust during their online purchase process. The research benefits to most of the companies due
to the development of technology and more and more companies about to join e-commerce.
E-retailers should pay more attention to building a quality website in terms of information,

navigation, and website interface to attract consumers and create trust from the first exposure.
Moreover, this research help companies understand the importance of trust and strategy to
build customer trust over time.

1.6. Methodology
The author uses a combination of different research tools and methods to yield practical and
theoretical results. Both qualitative and quantitative research were employed in which the
qualitative research will discovers customers' perceptions about trusted websites, customer’s
trust, online transactions as well as scales to measure these concepts. Meanwhile, the
quantitative approach is used to test the scales and the relationship among these concepts in
the research model.
The objectives of this research are finding the factors affecting consumers’ trust and buying
behavior on the internet, the unit of analysis is online consumer.

1.7. Outline of the report
To accomplish the stated research objectives, this thesis structure consists of the following 6
chapters:


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Chapter 1: Introduction, Chapter 2: Literature review, Chapter 3: Research methodology,
Chapter 4: Qualitative research, Chapter 5: Quantitative research, Chapter 6: Conclusion,
implication and limitation.

CHAPTER 2: LITERATURE REVIEW
2.1. Basic concepts
E-retailer: a retailer who sells products to consumers on the internet (Clarke, 2008; Collier &
Bienstock, 2006). With the rise of the internet and new technologies, there are more tools and
media than ever before to reach potential customers as well as to develop relationships with
customers.

Belief: is defined as the subjective ability of an individual to perform a specific action that
results in a certain outcome (Davis, Bagozzi, & Warshaw, 1989; Fishbein & Ajzen, 1975).
Trust: the perception that the trustee has trustworthy characteristics and is willing to take risks
and rely on the partner (Mcknight et al, 2004; Rousseau, Sitkin, Burt, & Camerer, 1998).
Hence, trust is a combination of belief (benevolence, competence, and integrity) and the
intention of trust (willingness to rely on others) (Jarvenpaa et al., 2000; Mayer, Davis, &
Schoorman, 1995; Mcknight et al, 2004; Rousseau et al, 1998).
Initial trust: Swift trust is a unique form of trust that occurs in ‘‘short-lived, transient, and
fleeting’’ temporary organizational structures (Meyerson, Weick, & Kramer, 1996).
According to McKnight et al (1998) initial trust between parties shall not be based on any
experience or knowledge of the other party. Rather it will be based on the willingness of an
individual to trust or on institutional signals that encourage one person to trust another without
first-hand knowledge.
Ongoing trust: positive customer beliefs related to the reliability and integrity of retailers
(Kim, 2012; Lee & Choi, 2011), ongoing trust is measured over a given period of time and
includes repetitive buying behavior.
Trust related behaviors: actions that show a reliance on an online retailer that can leave them
at a disadvantage or take risks related to personal information and themselves (Mayer et al,
1995; McKnight, Choudhury, & Kacmar, 2002a; Zand, 1972). According to McKnight et al
(2002a), behaviors that express trust in e-commerce include sharing personal information,
making purchases, and following website recommendations.
Perceived risk: is defined as the consumer’s subjective belief of suffering a loss in pursuit of
a desired outcome (Bauer, 1960; Pavlou, 2003). Cheung & Lee (2000) also argue that
perceived risk is the awareness of online consumers about the possibility of receiving
unexpected results or consequences. Thus risk perception consists of two components that are
(1) uncertainty/risk or probability of possible losses and (2) the consequences or importance
of the losses.


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Satisfaction: satisfaction is an outcome of purchase and use resulting from the buyer's
comparison of the rewards and costs of the purchase in relation to the anticipated consequence
(Churchill & Surprenant, 1982).

2.2. Theoretical framework
Figure 2.1 Theoretical Framework for Trust with Online Retailers
Buying behavior
TRA
(Fishbein & Ajzen, 1975)
TPB
(Ajzen,
1991)

TAM
UTAUT1 &2
(Davis, (Venkatesh, Morris, Davis, & Davis,
1985) 2003; Venkatesh, Thong, & Xu, 2012)

ELM
(Petty &
Cacioppo, 1986)

Buying behavior
(Philip Kotler &
Armstrong, 2015)

Trust in E-commerce
CTIS
(Cheung & Lee, 2000; Lee & Turban, 2001)

EC-Trust
(Fung & Lee, 1999)

Theory of Trust
(Meyer & Goes, 1988)
Initial Trust
(Kim, 2012; McKnight & Chervany, 2006; McKnight
và ctg, 1998; Yang và ctg, 2006)

Ongoing Trust
(Fang và ctg, 2014; Gefen, 2000, 2002a;
Gefen và ctg, 2003; D. J. Kim, 2012)

Source: Author’s analysis, 2017

2.3. Consumers’ behavior and buying behavior
2.3.1. Buying decision-making process
2.3.1.1. Buying process

Kotler and Armstrong (2012) summarize it into a five-step process that is highly integrated.
These steps include (1) need recognition, (2) seeking information, (3) evaluating alternatives,
(4) buying behavior, (5) post-purchase behavior.
2.3.1.2. The process of online purchasing

In the case of customers buying on the website Laudon & Traver (2014) also provide a 5-step
process that emphasizes the customer touch points with the website from unknown to buying
behavior and after buying behavior. In each stage, there are some specific behaviors and lead
them to the next stage.
2.3.1.3. The changing of the customer path in the digital age

Kotler, Kartajaya, and Setiawan (2017) emphasizes the changes in customer behavior and
journeys in shopping, whereby they moving from 4A model (Aware, Attitude, Act, Act again)
to 5A model (Aware, Appeal, Ask, Act, Advocate) in the connected world. In which attitude
formation is separated into the stage of appeal and ask. There are 3 major changes, firstly,
brand is influenced by the community and the customer is the final decision maker. Secondly,


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loyalty demonstrated by repeated purchases but shift now to advocate or the willingness to
support the brand. Thirdly, today when customers want to learn about products, they will
actively connect.

2.3.2. Theory of reasoned action (TRA)
According to TRA, the intention to act is one of the important factors used to predict a
purchase. Behavioral intent is influenced by two main concepts: Attitude and Subjective
Norm. In particular, attitudes toward behaviors are an expression of individuals expressing
their positive or negative beliefs about products, while the concept of subjective norm
expresses the impact of social relations on consumer.
This theory is the basis for the formation of a research model that assumes that customers
have an awareness and intention to buy online, and then form attitudes and behaviors towards
online purchases.

2.3.3. Theory of Planned Behavior (TPB)
TPB asserts that the intention of behavior is affected by the attitude toward the behavior,
subjective norm, also, TPB adds another variable is perceived behavioral control. Thus,
compared to the TRA model, the TPB model has one more variable discuss on the ability to
control affecting both the intention and the behavior of the subject.
This theory will serve as a foundation for analyzing the mechanism that shapes the impact of
trust and some other factors on the buying behavior of online users.

2.3.4. Theory of Technology acceptance model (TAM)
Technology Acceptance Model (TAM) by Davis (1985) explains the acceptance of computer
use/technology and computer user behavior/technology. Based on the TRA theory, the TAM
model examines exogenous variables such as perceived ease of use and perceived usefulness
and their impact on attitudes and intentions to use the technology.
However, the starting point of TAM theory is to explain the acceptance and application of
technology by organizations to achieve better performance in business, and its focus on two
components including usefulness and easy to use. While in the context of online shopping it
is not only about the usefulness but also about hedonic. Moreover, many companies often use
websites templates that have common standards and payment process. In addition, consumer
is currently familiar with many technologies and applications, hence it is not too difficult for
them to access the website. On the other hand, some of the elements of website quality such
as navigation or information and website design is considered as perceived usefulness and
ease of use, thus encourage consumers to accept and use the website as an effective tool for
shopping online.


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2.3.5 Unified theory of acceptance and use of technology (UTAUT)
The TAM theory and the UTAUT theory are often integrated into research model on the topic
of buying behavior, but these models are suitable for explaining behaviors using technology
but not considering risk factors in shopping, not considering repeat purchase behavior, nor
mentioning the concept of trust in shopping. However, these theories suggest other important
concepts and mechanisms that explain behavior such as the impact of gender, shopping
experience, and social interaction (e.g. reputation and market trends).

2.3.6. Elaboration likelihood model (ELM)
Petty and Cacioppo (1986) suggested that there are two ways to convince the target audience
(1) to persuade along the central route, (2) to persuade along the peripheral route. The

differences between these two routes are based on (1) the amount of information and the level
of awareness needed to process it, (2) the ability to process and evaluate related information.
Central route persuasion is activated when customer considers and cares about issues related
to key characteristics of the product/service. While the peripheral route persuasion is triggered
when the customer relies on other secondary "signals" and does not want to spend too much
effort learning about the characteristics of the product/service. Thus, the motivation and
ability to evaluate are two factors that determine which route will be activated by the
customer.
This theory is used to explain why customers have no experience with online retailers or have
not enough information related to retailers and products but still build trust through the
peripheral route with other "signals" such as third party certification or reputation. When
customer first approach to retailer's website, they can activate the central route if they have
ability and motivation to evaluate the website's information about products/services, or may
activate peripheral routes by using other signals such as third party certification, reputation,
or relevant certificate qualifications.

2.4. Theory of Trust
2.4.1. Theory of trust and its important
Trust is very important in transactions, and the relationship between buyers and sellers
especially when potential risks occur during online shopping (Gefen et al, 2003; Reichheld
and Schefter, 2000). Trust is the expectation that the chosen partner will not take advantages
of other, but consider interdependent relationships (Kumar et al., 1995a), ethical actions
(Hosmer, 1995), and following social norms (Gefen et al., 2003; Zucker, 1986). Moreover,
trust is the belief that the partner will fulfill his/her obligations (Gefen et al., 2003; Luhmann,
1979; Rotter, 1967) even though the trustor is overly dependent and take a lot of risks in the
situation (Gefen et al, 2003; Meyer and Goes, 1988; Rousseau et al., 1998).
Previous studies have established the concept of trust as (1) a set of beliefs related to partners'
benevolence, integrity and competence (Doney and Cannon, 1997; Ganesan, 1994; Gefen and

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Silver, 1999; Giffin, 1967; Larzelere and Huston, 1980) or (2) a general belief that partners
are trustworthiness and the willingness to depend on trustee, also known as intent to trust
(Gefen, 2000; Gefen et al, 2003; Hosmer, 1995; Mayer et al, 1995; McKnight et al, 1998;
Moorman, Zaltman, and Deshpande, 1992; Zucker, 1986). Thus, the concept of trust should
be a higher order construct including trusting beliefs and trusting intention in which trusting
beliefs form a foundation for trust and trusting intention lead to behaviors that express that
trust. Therefore, trust can be considered as a construct which consists of two components:
belief and trusting intention, where trust belief is measured through three components:
competence, benevolence and integrity.

2.4.2. Trust bases
2.4.2.1. Experience
2.4.2.2. Cognition
2.4.2.3. Institution
2.4.2.4. Personality
2.4.2.5. Economic/Calculative

2.4.3. Cognitive trust and affective trust
Trust is based on a cognitive process which discriminates among persons and institutions that
are trustworthy, distrusted, and un-known. In this sense, we cognitively choose whom we will
trust in which respects and under which circumstances (Lewis and Weigert, 1985).
Moreover, according to Lewis and Weigert (1985) the sociological foundation of trust is also
constructed on an emotional base that is complementary to its cognitive base. This affective
component of trust consists in an emotional bond among all those who participate in the
relationship. Therefore, a violation of trust can seriously affect the emotional and relationship
between the parties.

2.4.4. Trust lifecycle
Kim (2012) summarized the process of trust and separate into initial trust and ongoing trust

in which the act of first purchase is a turning point to classify trust as initial or ongoing trust.
The key to building ongoing trust is satisfaction after first purchase if the consumer is not
happy they lose trust. Ongoing trust is the continued belief in the online retailer's ability and
commitment.

2.4.5. Initial trust
McKnight et al. (2002b) defined initial trust as a state in which consumers trust online retailers
without firsthand knowledge. Therefore, initial trust is not based on prior experience, and so
initial trust is temporary and has a short live (Euijin and Tadisina, 2007). Thus it is special
form of trust but different from the ongoing trust which based on secondary information and


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other signals to assess the party while ongoing trust based on prior experience and interaction
with e-retailers.

2.4.6. Ongoing trust
Ongoing trust is a trust that refers to beliefs based on different sources of information to build
trust, which is based on the past experience, and history of interaction (firsthand knowledge)
to assess the retailer's ability, benevolence, and integrity. Ongoing trust is formed after
customers make their first purchase with the e-retailer. It is consumer’s belief about retailer's
reliability and integrity (Kim, 2012; Lee and Choi, 2011), ongoing trust is observable
interactions over time, and leads to repeated buying behavior. Ongoing trust shows the
importance of strengthening and maintaining relationships among the parties, and finally
build customer loyalty (Gefen, 2000, 2002a; Kong and Hung, 2006; Wu, 2013).
Therefore, ongoing trust is reinforced by the beliefs related to competence, benevolence, and
integrity over time. The concept of ongoing trust is close to the concept of loyalty, but focus
more on attitude and belief about e-retailer which increases when consumers are satisfied and
happy with previous shopping experience. Thus, satisfaction should have significant impact
over ongoing trust.

2.4.7. Trust in online shopping/purchasing
Based on the buying process in consumer behavior, integrated with theories of trust and
customer behavior in e-commerce, the author proposes a conceptual framework about
customer's online purchase process in which showing the role of online trust (see Figure 2.11)
Figure 2.11 Conceptual framework of trust and online buying behavior
Design

First
Buy/Try

Initial
Trust

Ongoing
Trust

Navigation
Web

Need
recognition

Searching
Information
+ Search
engine
+ Friends and
relatives
+ Social

networks

Information

Perceived
Risk
Satisfaction

Reputation

Repeat
Purchase

Do not trust/do not feel safe/unsatisfied
Refuse to purchase/switch to another option

Source: Author proposed, 2017


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2.5. Risk perception
2.5.1. Perceived risk
Perceived risk means that the person believes that there are negative consequences if he or
she makes the wrong decision. The greater the risk if the product is more expensive and
complex. Moreover, there is risk when others know one’s choice and he/she will feel ashamed
if the choice is incorrect (Solomon, 2017).
Perceived risk is strongly correlate with that of consumer behavior because consumers often
find ways to avoid mistakes rather than maximize the usefulness of shopping (Mitchell, 1998).
The perceived risk of online shopping is higher than that of traditional trasaction (Cheung and

Lee, 2000). Peter and Ryan (1976) suggest that perceived risk has two components including
uncertainty or probability of loss and the consequences or severity of losses.

2.5.2. The propensity to trust and risk
The propensity to trust and distrust growth and co-exists within each individual as they cope
with different situations in life. Over time, a person develops a propensity to trust/doubt others
and they use this experience to evaluate new relationships (Rotter, 1971). Although this
propensity is relatively stable as a habit, it may also change (Mayer et al., 1995) when
experiences, beliefs/distrust become more negative or more positive through events in that
personal life.

2.6. Satisfaction
Oliver (1997) states that satisfaction is the reaction of consumers to the satisfied needs and
wants. In other words, the satisfaction is when customer use the products/services and
comparing the consumption results with their expectations. According to disconfirmation
theory, when experiencing products, consumers will compare results or experiences with that
of the expectations. If consumers' expectations are greater than the performance, they will
feel unsatisfied, if the results are matched they will feel satisfied, and in the case of great
results than what they expected they will be surprised, and delighted.

2.7. Cultural and personal traits
2.7.1. Cultural
Hofstede (2001) defined culture as a program set in the minds of individuals in one group and
distinguishing members of one group from another.

2.7.2. Personal traits
Personal characteristics of consumers include age, gender, shopping experience, education,
etc. These characteristics are often considered as important segmentation criteria in Marketing
that helps businesses to group consumers into important segments so that they have different

13
marketing strategies and campaigns. Moreover, via analyzing individual characteristics the
study can achieve specific results for each target group. Therefore, the author also put in
personal characteristics to explore the differences in research results among group of
customers.

2.8. Develop a research model and hypotheses
2.8.1. The impact of website quality on trust and perceived risk
H1: Website interface design positively affects consumers' initial trust.
H2: Website navigation positively affects consumers' initial trust.
H3: Website information positively affects consumers' initial trust.
H4: Website information negatively affects perceived risk.

2.8.2. The impact of reputation on trust, perceived risk, and satisfaction
H5: Website reputation positively impacts consumers' initial trust.
H6: Website reputation negatively affects consumer’s perceived risk.
H7: Website reputation positively impacts consumers' satisfaction.

2.8.3. The impact of perceived risk on buying behavior
H8: Perceived risk negatively impacts consumers’ buying behavior.
H9: Perceived risk negatively impacts consumers’ repeat purchasing behavior.

2.8.4. The relationship between satisfaction and trust
H10: Initial trust positively affects consumer satisfaction.
H11: Satisfaction positively affects consumers' ongoing trust.

2.8.5. Trust, buying behavior and satisfaction
H12: Initial trust positively affects consumers' first try/first purchase.
H13: Ongoing trust positively affects consumers’ repeat purchases.

H14: Consumers’ initial purchase positively affects consumers’ satisfaction.
H15: Satisfaction positively affects consumers’ repeat purchasing behavior.

2.8.6. Culture, personal factors, and original trust
H16a: Gender moderate the relationship between perceived risk and initial purchase.
H16b: Gender moderate the relationship between trust and initial purchase.
H16c: Uncertainty avoidance moderate the relationship between risk and initial purchase.
H16d: Uncertainty avoidance moderate the relationship between trust and initial purchase.
H16e: Experience moderate the relationship between perceived risk and initial purchase.
H16f: Experience moderate the relationship between trust and initial purchase.

2.8.7. Compare the proposed model with previous studies
The hypotheses H8, H9, H11, H12, H13, H14, H15 & H16 are new contributions in the
research model.


14
Figure 2.12 Proposed research model

Design
Navigation
Information
Reputation

Uncertainty avoidance, Internet usage experience, gender
H16(a,b,c,d,e,f)
First
H1
H12
Buy/Trial

Initial
Ongoing
H2
Trust
Trust
H14
H8
H11
H3
H4
H9
H13
H5
Perceived
H10
Risk
Repeat
H15
H6
Satisfaction
Purchase
H7

Source: Author proposed, 2017

CHAPTER 3: METHODOLOGY
3.1. Research process
Figure 3.1 Research process
IDENTIFYING PROBLEMS AND
OBJECTIVES

Literature
Review

STEP 1
REVIEW THEORIES AND
RELATED DOCUMENTS

STEP 2
In-depth
interview (n=30) QUALITATIVE RESEARCH

Develop
measuring scale
Build a
questionnaire

STEP 3
QUANTITATIVE
RESEARCH

Preliminary
survey (n=250)

Scale reliability
check

EFA Analysis

Testing research
model

Primary
survey

Refine
questionaire

CONCLUSION

STEP 4
CONCLUSION AND
IMPLICATIONS

Source: Author proposed, 2017

3.2. Qualitative research
3.3. Quantitative research
CHAPTER 4: QUALITATIVE RESEARCH AND FINDINGS
4.1. Results from an in-depth interview
In short, the online buying process is quite similar to the traditional purchasing process, but
trust plays an important role in the consideration stage and focuses more on building trust on
the internet. The author synthesizes, summarizes, and illustrates customer trust building
process or online shopping process through Figure 4.1, in which potential customers seek


15
product information from sources such as social networks, search engines, family, or friends
and display ads. Then visit the retailer's specific website, if the retailer's website appears to
be a trustworthy site that makes an initial impression then they will buy for the first time after
considering the risk factor. If they are satisfied with the shopping experience the first time

they will come back to buy more products or other products from this site, the process will
continue over and over again, if they are not satisfied with experience or product in a previous
purchase, they may turn to other retailer's websites or choose a different form of shopping.
As such, the first purchase is important and after trusting the retailer's competence, the retailer
needs to maintain the trust of the customer at a later stage by showing that he/she is a
responsible supplier and integrity because they have already proven their capability on the
first purchase.
Figure 4.1 The process of building customer confidence
Source of information
Social
Network
Search
Engines
Display
ads/email
Family and
friends

Trust building factors
Reputation
Branded Products
Friend & family
suggestions
Retailer’s
Website
Web design/interface
Warranty Policies
Customers’ Reviews
Online supports

Trust building and reinforcement process
Perceived
Risk

First time
order/ Trial

Satisfaction

Repeat
purchase

Dissatisfaction

Switch

Source: From qualitative research, 2017

4.2. Modifying scales for constructs
As presented for the qualitative research design in Chapter 3, in which several experts and
subjects were selected (including 10 respondents in the interview and 5 experts see Annex D)
adjust the questionnaire. These discussions were made after the in-depth interview that
mentioned above (some participants were selected from the interview). Other discussion for
experts were taken place in offices, cafes, or at their home. After collect and consolidate the
opinions and comments of the interviewees related to the suggested scale, the author adjusted
and added some questions after the process of learning about the online purchasing behavior
of consumers. Twenty-two of these were excluded because these statements were not clear
when translated from the original scale, some of them confusing and obscure, and not
knowing how to answer, some answered find it hard to observe and evaluate or hard to
remember for evaluation. Twenty-one statements need to be adjusted in terms of sentences

and ideas to make them easier to understand and suitable for the surveyed object. Nineteen
statements are kept unchanged. There are 16 added statements to the questionnaire to
compensate to items that have been eliminated.


16

CHAPTER 5: QUANTITATIVE RESEARCH AND FINDINGS
5.1. Preliminary research results
5.2. Statistics and summary of data
Table 5.1 Sample characteristics
Group
N
Age
<19
19-24
25-30
31-40
>40
Marital Status
Single
Married, without children
Married, with children
Education
Primary & Secondary
High School
Undergraduates
Graduates
Others
Place of Residence

Ho Chi Minh
Ha Noi
Hue – Da Nang
Others

F
595

%
100

20 3,4
365 61,3
125 21,0
66 11,1
19 3,2
492 82,7
19 3,2
84 14,1
2 0,3
25 4,2
462 77,6
101 17,0
5 0,8
525 88,4
23 3,9
6
1
40 6,7

Income (million)
<5
5-10
10-15
15-20
20-25
25-30
>30
Occupation
Students
Staff
Freelancers
Teachers
Entrepreneurs
Managers
Vendors
Factory workers
Homemakers
Engineers
Retired
Others
Gender
Male
Female

F
%
272 45,7
166 27,9
69 11,6

40 6,7
23 3,9
8 1,3
17 2,9
239 40,2
171 28,7
69 11,6
47 7,9
25 4,2
23 3,9
7 1,2
6
1
2 0,3
2 0,3
2 0,3
2 0,3
209 35,1
386 64,9

Order Value (unit: thousand
dongs)

Source: Author’s analysis, 2018
Figure 5.1 Frequency of purchase value (first time)
10000
2700
900
545
350

260
189
120
80
20

1000; 2,7%
500; 9,4%
300; 9,1%

200; 16%

150; 4,5%
100; 7,2%
0

20

40
60
Frequency

80

100

Source: Author’s analysis, 2018


17

Order Value (unit: thousand dongs)

Figure 5.2 Frequency of purchase value (highest value repetition)
52750
16000
7500
4725
2700
1546
1140
878
613
420
320
248
107
32

5000; 1,8%
2000; 3,2%
1000; 3,7%
800; 3,9%
600; 4,7%

200; 4,9%
0

20

40
Frequency

500; 12,6%
300; 8,9%

60

80

Source: Author’s analysis, 2018
Table 5.2 Average value of online shopping orders
ORD1
ORD2

N
595
595

Lowest
20.000
0,00

Highest
75.200.000
204.700.000

Mean
1.191.818
2.845.326

S.D.
4.683.257
11.226.999

Source: Author’s analysis, 2018

5.3. Scale Measurement and Structural Equation Model
5.3.2. Cronbach’s alpha
5.3.3. Initial trust (a third order construct)
Figure 5.4 Initial trust scale (standardized)

Source: Author’s analysis, 2018


18

5.3.4. Ongoing trust (third order construct)
Figure 5.6 Ongoing trust scale (standardized)

Source: Author’s analysis, 2018

5.3.5. Saturated model for constructs before purchasing
5.3.6. Saturated model for constructs after purchasing

5.4. Testing relationships among constructs in the research model
5.4.1. Measuring buying behavior as a latent construct (set of items)
Figure 5.9 Structural equation model (buying behavior as latent construct)

Source: Author’s analysis, 2018

19

5.4.2. Measuring buying behavior by the value of shopping order
Figure 5.10 Structural equation model (buying behavior as value order)

Source: Author’s analysis, 2018
Table 5.30 Comparison of hypothetical results of research and competition models
Hypothesis

Research
model

Competitive
model

Design  Trust (I)

H01

Supported

Supported

Navigation  Trust (I)

H02

Supported

Supported

Information  Trust (I)

H03

Supported

Supported

Information  Risk

H04

Rejected

Rejected

Reputation  Trust (I)

H05

Supported

Supported

Reputation  Risk

H06

Supported

Supported

Reputation  Satisfaction

H07

Supported

Supported

Risk  Buy (F)

H08

Supported

Reversed

Risk  Buy (R)

H09

Rejected

Reversed

Trust (I)  Satisfaction

H10

Supported

Supported

Satisfaction  Trust (O)

H11

Supported

Supported

Trust (I)  Buy (F)

H12

Supported

Supported

Trust (O)  Buy (R)

H13

Supported

Rejected

Buy (F)  Satisfaction

H14

Supported

Rejected

Satisfaction  Buy (R)

H15

Supported

Rejected

H16(a-f)

Supported

Rejected

The relationship between the concepts

The regulatory impact of gender, risk avoidance
trends, and online shopping experience
I: Initial; O: Ongoing; F: First; R: Repeat

Source: Author’s Analysis, 2018

20

5.5. Discussion
5.5.1. Building trust in online shopping
5.5.2. Measuring buying behavior
5.5.3. Factors influence trust and buying behavior
5.5.4. Multi groups analysis (Genders, Experience, Uncertainty avoidance)

5.6. Chapter conclusion

CHAPTER 6: CONCLUSION AND RECOMMENDATION
6.1. Conclusion
The results of the interviews show why young consumers who work full-time, and well
educated people tend to buy online, in which most people around them (friends and
colleagues) have bought things online. Moreover, due to the limited time, most people with
full-time jobs often search and shop for products online, which is considered as a convenient
solution that saves time.
Before reaching an online retailer, consumers can get suggested information from search
engines, family, and friends. Moreover, they may also be attracted to other sources of
information such as social networks or display ads. Two important factors for consumers
when shopping online are convenience and good deals (low prices), therefore they tend to
look for products from different online retailers. After comparing prices and pick up from a
retailer that matches their requirements, while taking into account the reputation and
credibility of an online retailer.
As opposed to traditional transactions, consumers often concern financial risks and product
risks, for instant, they may receive an unexpected product or lose money when make a
transaction with an untrusted e-retailer. If an e-retailer can help potential customers form their
initial trust by showing the signal of a trusted retailer with interesting terms (e.g. cash on

delivery (COD); and refund policy) they will place the first order (trial). However, to keep
customers coming back, it is necessary to ensure that customers are satisfied with the
product/service and so they may form ongoing trust.
Customers hesitate to take action because of perceived risks and lack of trust in e-retailers.
Trust affect customers' buying decisions, e.g. buyers may refuse to make transaction from an
online retailer even though he/she is offering good products at the lowest prices.
The trust factor plays an important role in the entire buying process of customers, but it is not
explicitly mentioned in a simple question, so this factor can be considered an abstract concept.
In other words, it only appears when author conduct an in-depth discussion or putting
customers in specific situations. According to customers’ explanation, a reliable retailer
should have enough "ability" to satisfy customers regarding service and product quality, they
must have "responsibility" and keep the “commitment” in business, and ultimately they must
have "morality" and "kindness" by seeking interest for customers and the community.


21
Moreover, the author has developed a model to build and reinforce trust in the online shopping
process from the initial stage to the repeat purchases stage.
As discussed in the theory trust is complex, and multidimensional construct which is
measured as a third-order construct. Measurement scale were adapted from previous studies
and developed from qualitative research. The concept of trust was measured in general, or
divided into stages but did not measure these constructs at once to see the differences. The
findings in this study suggest that initial trust (the pre-purchase period) is a multidimensional
construct that includes trusting intention and trusting belief where belief have three
components namely competence, integrity, and benevolence. While ongoing trust (after
purchase) is difference in which it has only 2 important components: benevolence and
integrity. This finding have significant contribution that confirms the concept of trust is
complicated and dynamic that change overtime.
Purchasing behavior in this study is measured in terms of latent variables and order value, and
offers two research models to compare and contrast. The findings showed that when measured

buying behavior as latent variable, most of the hypotheses were accepted, the relationships
were as expected support for theories discuss in literature review. While in the competitive
model, some relationships were reversed compared to discussed theories, R-squared of
constructs in competitive model are lower than the proposed research model.
The factors affecting buying behavior such as trust and perceived risk in research model, in
which trust has significant impact on buying behavior compared to perceived risk for both
stages--first time order and repeat order with highest value. In the competitive model, the
impact of trust and risk on initial and repeat purchasing behavior is relatively equal and have
a low impact. Thus, in the research model where purchasing behavior is measured as a latent
construct, trust has more impacts on buying behavior, whereas in the competitive model,
measured buying behavior as the value of order has low R squared and trust has lower effects
over buying behavior compared to research model.
The moderating effects of gender, uncertainty avoidance, and shopping experience on the
identified relationships are only support for the research model but not the competitive model.
The results show that men perceive more risks but also tend to trust more than women. For
those who love to take risk are more likely to trust rather than risk adverse, experienced groups
often perceive less risk and so does less trust on e-retailer, whereas the group with less
shopping experience rely more on trust.
The factors that affects trust including reputation, information, navigation, and the website
interface design. Among the factors that affect the initial trust, information has the most
impact over initial trust, giving customers a basis to evaluate the reliability of e- retailers.
Similar to previous studies on buying behavior, trust, brand, and loyalty, this research also
shows the vital role of satisfaction in maintaining trust and leads to repeat purchasing. In the