THE MODERATING EFFECTS OF CONTEXTUAL FACTORS ON A BUYER’S TRUST IN E-COMMERCE PLATFORMS AND SELLERS

Abstract

Drawing on trust transfer theory and signal theory, we investigate how perceived effectiveness of e-commerce institutional mechanisms (PEEIM) and perceived website quality of the seller (PWQS) moderate the relationships between trust in platform, trust in seller and purchase intention in the context of Consumer to Consumer (C2C) platforms. To test our proposed model, we surveyed 224 buyers of TaoBao, a major Chinese C2C portal. The results indicate that PEEIM has no effect on the relationship between trust in platform and trust in seller, yet it positively moderates the relationship between trust in seller and purchase intention. In addition, PWQS positively moderates the relationship between trust in platform and trust in seller, but negatively moderates the relationship between trust in seller and purchase intention. The theoretical and practical implications are discussed