A model of establishing initial customer trust in E-retailing in the Philippines

• Main Authors: Perez, Marc Louis C., Pring, Marie Dawn Charisse S., Segismundo, Maureen A.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Internet marketing > Philippines; Electronic commerce > Philippines; Retail trade > Computer network resources; Teleshopping > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7997
• Institution: De La Salle University

With the increasing popularity and ease of accessibility of the World Wide Web (or the Internet) comes the convenience that it offers its users since several tedious activities can now be performed with just a few clicks of the finger. One of these conveniences offered by the Internet is online shopping or what is also known as E-retailing. With the Philippines as one of the top ten countries with most Internet users in Asia, it has been said that the country has a great potential in having a successful E-retailing industry. However, past data on E-retailing revenue shows that this is not enough to encourage Filipinos to shop online - this means other aspects are overseen in this situation. One of the important factors that determine the success of E-retailing is the trust level that the online customers have towards E-retailing and the players within the industry or the E-retailers. There are several factors that were determined to affect trust in E-retailing. Moreover, it has been established that these factors differ from one culture to the other. Furthermore, although there have been several studies and model formulated with regards to this matter, very minimal researches, if not none at all, were made that focuses on Filipinos alone. In this study, these concerns were addressed with the formulation of initial theoretical model that was validated through a 5-point likert scale survey on Filipinos who have been involved in the process of purchasing online. And the results were studied and analyzed through Canonical Correlation and Structural Equation Modeling (SEM). In the analysis, the final model that consists of the factors that were established to significantly affect initial consumer trust in E-retailing in the Philippines are: (1) Information Sources, (2) Risk Perception, (3) Perceived Benevolence and (4) Website Security Features. Moreover, Information Sources were also found to affect a company's Perceived Benevolence, and since Perceived Benevolence and Information Sources were both found to be significant, their relationship is also included in the final model.