FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

KL MAIN CAMPUS

BBDM 3013 Business Research

2015
Tittle : The Antecedents of Online Purchase Intention
Programme: Bachelor of Business (Hons) In Marketing
Lecturer

: Dr. Kwek Choon Ling

Tutorial group: 2RMK1

No.

Students Names

Students ID No.

Tan Pei Jung

14 WBR 04116

Lim Shin Naa

14 WBR 02852

Low Jia Huoy

14 WBR 02428

Chung Jia Hao

14 WBR 04285

Han Min Yi

14 WBR 05595

Table Content
Abstract
1.0 Introduction
2.0 Literature Review
2.1 Theoretical Background
2.2 Familiarity and Online Purchase Intention
2.3 Trust in vendor and Online Purchase Intention
2.4 Attitude and Online Purchase Intention
2.5 Attitude, Trust in Vendor, Online Purchase Intention
2.6 Perceived Value and Online Purchase Intention
2.7 Perceived Value, Trust in Vendor and Online Purchase
Intention
2.8 Famility and Trust in Vendor
2.9 Trust in Vendor and Perceived Risk
2.10Trust in Vendor and Attitude
2.11Trust in Vendor and Perceived Value
2.12Perceived risk and Attitude towards Online Purchase
Intention
2.13Perceived Risk and Online Purchase Intention
2.14onceptual Framework
3.0Methodology
3.1 Research Design
3.2Measures
3.3 Sampling and Data Collection
3.4 Pilot Test
3.5 Method of Analysis
4.0 Data Analysis and Finding
4.1 Preliminary Analysis
4.2 Descriptive Analysis
4.3 Reliability and Validity Tests
4.3.1 Reliability Test
4.3.2 Validity Test
4.4 Inferential Analysis
4.4.1 Bivariate Regression Analysis
4.4.2 Multiple Regression Analysis
4.4.3 Mediated Regression Analysis (H4 and H6)
5.0 Conclusion
5.1 Discussion and conclusion
5.2 Theoretical and Managerial Implications
5.3 Limitation and Recommendation for further research
References
Appendix

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The Antecedents of Online Purchase Intention

Abstract
Online purchase intention is influenced by several factors based on the past literature reviews.
Trust in vendor, familiarity, perceived risk, perceived value and attitude are some of the most
widely used factors. An empirical study was undertaken to investigate the impact of various
levels of these factors towards consumers online purchase intention. A total of 280 samples were
distributed to students who ranged from 18 to 26 years old Faculty of Finance and Business at
Tunku Abdul Rahman University College. Besides, questionnaire survey way used as the main
method of data collection. This paper seeks to explore the antecedents of online purchase
intention and proposes a comprehensive model by taking into consideration of its direct effect
factors. Theory of Planned Behavior (TPB), Theory of Reasoned Action (TRA), Social Exchange
Theory and also Technology of Adopted Model (TAM) are the underpinning theories involved in
investigating factors that affect online purchase intention. Findings indicate that familiarity is
positively related to online purchase intention and trust in vendor. There is a positive relationship
between trust in vendor and online purchase intention. Attitude is positively related to online
purchase intention whereas it also is a mediator between trust in vendor and online purchase
intention. Likewise, perceived value, trust in vendor and online purchase intention is positively
related. Perceived value also mediate the relationship between trust in vendor and online
purchase intention. There is a negative relationship between trust in vendor and perceive risk.
Perceive risk is negatively related towards attitude, trust in vendor and online purchase intention.
Lastly, trust in vendor is also positively related to the attitude. These findings offer valuable
implications for online retailers and vendors who wish to maintain and get a clear insight
towards the factors that affect customers intention towards online purchase. Preliminary
analysis, reliability and validity test, multiple regression and mediator regression analysis are the
various method used in the research in order to strengthen the research findings. Implications for
research and practice are then further discussed.
Keywords:
Trust in Vendor, Familiarity, Perceived Risk, Attitude, Perceived Value, Online Purchase
Intention

1.0 Introduction
E-commerce and Internet shopping is continuously enjoying high and rapid growth and
development (Chen 2012; Shiau & Luo 2012; Zhou 2012). Customer purchase intention has
gained considerable attention in the e-commerce literature (Oliver 2009), and as a result,
previous studies have addressed the causal relationships between direct and indirect effects on
customer purchase intentions (Kassim & Abdullah 2010; Lee et al. 2011; Liang & Zhang 2012).
Compared to the bricks and mortar way of shopping whereby consumers have to go to stores to
buy goods, online shopping creates the opportunity for different business to reach consumers
directly across the globe (Laohapensang 2009; Al-Maghrabi et al. 2011). Besides, the constant
increase of competition in online markets results in the change of the patterns that business
should follow in order to increase customer retention (Pappas et al. 2011, p. 456). Consumers,
either using brick and mortar or click and mortar have similar characteristics that do not change
(Pappas et al. 2011, p.456). Thus, the presence of academic studies towards the antecedents of
online purchase intentions are very important to identify such patterns and provide marketing
information, as retaining customers is more profitable than creating new ones (Liao et al. 2006).
In e-commerce, trust has long been regarded as playing an essential role in affecting consumers
online purchasing behavior (Pavlou & Fygenson 2006). As identified by major corporations, the
Federal Administration and the Better Business Bureau, trust in internet vendors as for example
companies that sell their goods through the World Wide Web interface is a major factor
influencing the successful proliferation of E-commerce (Gefen 2000, p.725). In general, trust
indeed is a vital role in many economic and social interactions involving dependency and
uncertainty (Hosmer 1995; Kumar 1996; Rousseau et al. 1998). As suggested in Luhmanns
theory of Trust and Power, familiarity is an antecedent of trust (Luhmann 1979). Familiarity is a
prerequisite of trust because it creates a framework and understanding of the environment and
the trusted party within the expectations of trust can be amplified (Gefen 2000, p.726). Thus, the
importance of how trust in vendor and familiarity integrates and influences other factors such as
perceived risk, perceived value and attitude towards customers online purchase intention is the
objective of this study.
Few studies in the field of e-commerce and marketing had analyze the antecedents of perceived
risk towards online group buying intention (Lim 2013, p.273), online repurchase intention
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(Martin et al. 2015), and consumer attitude towards online purchasing (Bianchi & Andrews
2012). Lim (2013, p. 273) had proved that perceived risk is positively related towards online
group buying intention. Yet, the effects of perceived risk towards individual online purchase
intention has yet to be investigated. Thus, the aim of this study is to investigate the relationship
between perceive risk and individual online purchase intention. Furthermore, previous research
has advanced our understanding of the factors that influence customers purchase intentions (Hsu
et al. 2008; Sanyal & Datta 2011), yet there is comparatively little studies regarding attitude as a
mediator between trust in vendor towards online purchase intention. Based on the research by
Hsu et al. (2014), the research model and hypothesis had proved that there is a relationship
between trust in vendor towards attitude and intention to purchase online. Hsu et al. (2014) claim
that trust in vendor positively affects attitude towards online shopping whereas attitude towards
online shopping has a positive effect on intention to purchase. Other than that, based on the
research by Ponte et al. (2015), perceived value had mediated the relationship between trust in
vendor and online purchase intention. Ponte et al. (2015, p. 290) claim that perceived value on a
website positively influence the online purchase intention whereas trust in an online vendor
positively affects the perceived value for customers. Besides, Ponte et al. (2015, p. 290) also
claim that trust positively affects the online purchase intention. Thus, perceived value has proven
to be a mediator that mediates the relationship between trust and online purchase intention (Ponte
et al. 2015). Based on the previous research, Gefen (2000, p. 729) claim that increased degrees of
trust in an E-commerce vendor will increase consumers intentions to purchase products on the
vendors website. Thus, we aim to test whether attitude is a mediator for trust in vendor and
online purchase intention. As the research is aim to investigate the antecedents of online
purchase intention, thus the main research question that we had portrayed is what are the factors
affecting consumers online purchase intention? The remainder of the paper is structured as
follows. In the next section, literature review and working hypotheses are proposed. Following
that, research methodology is further discussed. The results are then presented, and finally
conclusions and the implications for future research are provided.

2.0 Literature Review

2.1 Theoretical Background
Past literature had examined factors that influence consumer attitudes and intentions towards
purchasing online, this includes studies of perceived risk and trust, initial adoption or nonadoption dichotomy are also focused (Bianchi & Andrews 2011, p. 255). Trust in vendor plays an
important role in e-commerce, without trust consumers are unlikely to shop online (Gefen 2002;
Kim et al. 2008). According to Gefen et al. (2003), definition of trust is complicated because it is
a complex an abstract factor. According to Pavlou (2003), in the field of e-commerce trust is the
belief that renders consumers vulnerable to the good faith of online sellers after learning of their
characteristics. Besides, Gefen (2000) conceives that trust is a general belief in an online seller
that results in a behavioral intention. Other than that, Kim et al. (2008) claim that trust is a
subjective belief that the online seller will fulfill its transactional obligations, as those obligations
are understood by the consumer. In this research, the last definition of trust which is trust in
vendor is used.
Gefen (2000, p. 727) argues that familiarity is another way people subjectively reduce
uncertainty and simplify their relationships with others. This is due to familiarity is an
understanding, often based on previous experiences, interactions and learning process (Luhmann
1979). Thus, familiarity and trust are distinctly different (Gefen 2000, p. 727). Familiarity could
also relate to the online shopping experience in general and not only to a specific web site
(Sultan et al. 2002). Other than that, familiarity deals with an understanding of the current
actions of other people or objects (Luhmann 1979). Thus from this perspective consumers tend to
accumulate knowledge about buying on E-commerce and therefore would become much skillful
while purchasing (Sultan et al. 2002). Other than that, familiarity is also a reflection of ones
ability to understand information based on the internet (Moreau et al. 2001). The more familiar a
consumer is with online buying, the more likely one will have the greater confidence and the
intention to purchase via online than a novice user (Sultan et al. 2002).
Several theory are portrait in this research paper such as Theory of Planned Behavior (TPB),
Theory of Reasoned Action (TRA), Social Exchange Theory and also Technology of Adopted
Model (TAM). Theory of Planned Behavior (TPB) is a general model that has been applied in
several diverse domains (Ramayah et al. 2009, p. 1224). Azjen (1991) argues that consumers
4

actions are determined by their intentions and are influenced by their perceived behavioral
control, besides subjective norm and attitude. Besides, TPB is an extension of TRA due to the
limitation of TRA to deal with behavior over which individuals have incomplete voluntary
control (Azjen 1991). Besides, Theory of Reasoned Action (TRA) was introduced by Fishbein
and Azjen (1975) in order to understand behavioral intention. The personal factor is represented
by attitude towards the behavior and the social factor is represented by subjective norm (Fishbein
& Ajzen 1975).

In TRA, the behavior intention of performing a particular behavior is

determined by a personal factor and a social factor (Fishbein & Ajzen 1975). Furthermore,
Technology Acceptance Model (TAM) states that an individuals system usage is determined by
behavioral intention and also determined by ones attitude toward the behavior (Davis 1989).
Numerous investigators had also modified the initial TAM (Ramayah 2009, p. 1224). Lastly,
Social Exchange Theory is deemed to be an appropriate theoretical lens to hypothesize about the
relationship between the considered antecedents of online purchase intention and trust
(Schoenherr et al. 2015, p. 403). SET is vital for the investigation of inter-organizational
relationships due to its ability to provide a deeper understanding of the underlying dynamics
(Narasimhan et al. 2009). It is very useful since inter-organizational relationships not only
consist of contractual elements, yet they also include vital social dimensions such as trust (Sia et
al. 2008).

2.2 Familiarity and Online Purchase Intention

Familiarity defines as the number of product or services related to experiences that have been
accumulated by the consumer (Alba & Hutchinson 1987, p. 411). Luhmann (1988, p. 99) claims
that familiarity is the knowledge that people have of a product or service, based on their
experience and previous explore. Sultan, Urban, Shankar, Bart (2002) claim that familiarity
could be related to online shopping experience in general not only a specific website. From this
point of view, consumers will gather the knowledge about purchasing online (Von & Pizzutti
2011, p. 231). While familiarity with the internet reflects the ability of consumer to find out the
information based on the internet (Moreau, Lehmann, & Markman 2001). If consumers are
overwhelmed by unfamiliar and the complexity of the internet, they are more likely to give up
and lost the intention to purchase online (Gefen 2000, p. 729). Therefore, many website now
5

provide pages to introduce about themselves and explain the procedures that will involve in the
website (Gefen 2000, p. 729). Improve the degree of familiarity of consumers towards internet in
order to increase intention of consumer to purchase online (Gefen 2000, p. 729). While an expert
user who is familiar with the internet will has higher intention and confidence level in the online
purchase (Sultan et al., 2002). Moreover, studies have been conducted to evaluate the influence
of familiarity on internet usage and adoption and suggested familiarity with the Internet as a
communication technology as an important factor of intention to purchase online (Katariina
Menpa et al. 2008, p. 267). With these reason, we propose the hypothesis:
H1: Familiarity is positively related to online purchase intention.

2.3 Trust in vendor and Online Purchase Intention

Trust in vendor had been identified both empirically (Jarvenpaa et al. 2000) and conceptually
(Tan & Sutherland 2004). According to Tan and Sutherland (2004, pp. 53), the concept of
intention to trust is the outcome of consumers judgement towards online trust. Consumer is
willing to depends on the vendor on internet and make themselves vulnerable to a specific
internet vendor (Tan & Sutherland 2004, pp. 54). Consumers placed their trust on vendors whom
they purchase online before (Jarvenpaa et al. 2000, pp. 47). Trust would be essential as there is
lack of guaranty that internet vendor will be ethical in behaviours (Gefen 2000, pp. 729).
Grazioli and Jarvenpaa (2000, pp. 397) considered consumer is trustor who visits a web store
while trustee is the vendor that sells goods and services on the internet. According to Mayer et al.
(1995, pp. 712), trust is the willingness of a trustor to be vulnerable to trustees actions with the
expectation that the trustee would perform a particular actions that is important to trustor. If the
actions are reciprocated, consumers trust towards vendor tends to be spiral upward and vice
versa (Sitkin & Roth 1993). Purchasing online and making online transaction require trust in the
other party (Pavlou & Gefen 2004). According to Gefen (2000), trust should be the prime
mechanism that people would employ, and trust is able to influence consumers decision on
online purchase intention on E-commerce. The lacking of trust in vendor is the primary reason of
why consumers do not purchase from online vendors (Lee & Turban 2001, pp. 77). The trusting
beliefs of consumers strongly affect the intention of consumers to purchase from online vendors
(Jarvenpaa 2000).
6

H2: There is a positive relationship between trust in vendor and online purchase intention.

2.4 Attitude and Online Purchase Intention

Attitude is the independent variable which causes customers intention to purchase online.
According to Hsu et al. (2014, p. 333), attitude can be defined as degree of a positive feeling of a
customer about them while involving in the online purchase activity. The person with greater
positive attitude, the will have more intention to purchase online (Hsu et al. 2014, p. 333). For
instance, a significant volume of prior literature which examine by Pavlou and Fygenson (2006,
p. 137) show that they are a positive relationship between attitude and intention to online
purchase. Besides, website which has more web features such as mapping and choices available
will able to get more attitude from customers (Coyle & Thorson 2001, p. 67). Furthermore,
information is also one of the criteria which lead the attitude toward website (Chen et al. 2002).
Based on the argument above, which leads to the hypothesis below:
H3: Attitude is positively related to online purchase intention.

2.5 Attitude, Trust in Vendor, Online Purchase Intention

Bianchi and Andrews (2011, p. 258) acknowledge that trust in online vendors has been identified
by both empirically and conceptually. Jarvenpaa et.al (2000, p. 47) claim that this dimension had
consider the extent to which consumers place trust towards the online vendors from whom they
purchase. Blau (1964) argues that according to Social Exchange Theory, trust regulates
consumers expectations from the exchange relationship, decreases the fear of being exploited
and also increases the perceived confidence concerning other peoples expected behavior. Chen
and Teng (2013, p. 7) acknowledge that trust helps in reducing the risk of a consumer in
purchasing via online by allowing the consumer to subjectively state out any possible yet
undesirable behaviors of the online vendor, including misuse of personal and private
information. Trust in vendor had encouraged the intention of consumer to purchase from online
stores (Chen & Teng 2013, p. 7). High levels of trust in vendor are also associated with high
level of online purchase intention (Chen & Teng 2013, p. 7).
7

Past researchers investigate trust in vendor and found that this factor had a positive relationship
which influences attitude towards online purchasing (McCole et al. 2010, p. 1019). Jarvenpaa et
al. (2000, p. 50) claim that in cross-cultural studies, trust in online vendors has a positive impact
on consumers attitudes towards the online vendor, thus influencing their willingness to buy.
Besides, high level of trust by buyers also have been proved to arouse favorable behavior and
attitude (Anderson & Narus 1990). Futhermore, Macintosh and Lockshin (1997, p. 488)
acknowledge that a consumers trust in a vendor influence the attitudes towards the vendor.
Jarvenpaa et al. (2000, p. 50) claim that theory of reasoned action (TRA) and the theory of
planned behavior (TPB) assume that voluntary behavior is determined by the intentions to act. A
shoppers intention to buy is anticipated by the shoppers attitude toward the purchase (Jarvenpaa
et al. 2000, p. 50). According to Fishbein and Azjen (1975), consumer attitude describe to the
extent to which one makes a positive or negative interpretation about a performing behavior.
Past literatures had suggested that attitude is a predictor of intentions to purchase online
(Grandn et al. 2009, p. 293). As for individual which had direct experience of a phenomenon,
such as having purchased online (e.g. Hernndez et al. 2010), such attitude will be more easily
retrieve for future use and accessible in their memory (Fazio & Zanna 1981). Therefore, it is
expected that a positive relationship exist between consumer attitude and intentions to purchase
online (Bianchi & Andrews 2012, p. 257). Thus, we hypothesise the following:
H4: Attitude mediates the relationship between trust in vendor and online purchase intention.

2.6 Perceived Value and Online Purchase Intention

According to Sabiote et al. (2012, p. 182), perceived value can be defined as the utility of a
product or service which given to the customers based on what is received and what is given on
perception. Therefore, there are two factors which formed this structure which is benefits
received by customers and sacrifices they provide (Sabiote et al. 2012, p. 182). Chang and Wang
(2010, p. 339) states that perceived value in online purchase is not only rely on the product itself.
It also includes the process of searching, making order, and receiving products from that website
(Chang & Wang 2011, p. 339). Although perceived value has been use for research purpose for a

long time, but most of the studies examined towards offline purchase but not online purchase
(Chang & Wang 2011, p. 339).
Besides, the theory of means-end chain states that there is a direct purchase relationship when a
person evaluates the attributes and benefits of a product and service (Chang & Wang 2011, p.
340). Obviously, customers will be more willing to shop with vendor who provides maximum
value (Ponte et al. 2014, p. 290). Therefore based on Fornell et al. (Sabiote et al. 2012, p. 183),
customers will search for business that could provide them better perceived value and positive
evaluation and affection of the product. Perceived value show the net gain from consumption of
the customers and customers will choose product based on their superior value and compare it
with the compete items (Chang & Wang 2011, p. 340).
Therefore, we have hypothesized that perceived value is an independent variable to affect online
purchase intention as dependent variable that supported evidence from above.
H5: There is a positive relationship between perceived value and online purchase intention.

2.7 Perceived Value, Trust in Vendor and Online Purchase Intention

McCole et al. (2009, p. 1019) claim that in the background of business to consumer relationship,
it is found that trust in the transacting vendor is vital for the consumer to take the risk which is
associated in a given transaction. Past literature had proved that trust in vendor and trusting
beliefs had a strong influence towards ones online purchase intention (McCole et al. 2009, p.
1019). Moreover, past research had found out that a lack of trust is also a primary reason why
consumers do not tend to purchase from online vendors (Gefen & Heart 2006, p. 5). Lewis and
Weigert (1985) acknowledge that decisions regarding the trust in vendor may be the result of
accumulated transactions in the past either cognitive trust or affective trust. Since trust in vendor
is a necessary forerunner to online buying, online vendor must display behaviors and cues that
impart consumer trust in their integrity, predictability and altruism when serving or dealing with
online shoppers (McCole et al. 2009, p. 1019).
Kim et al. (2012, p. 244) claim that trust in an internet vendor has a positive effect on perceived
value for potential and repeat customers. According to Kim et al (2012, p. 244), consumers that
9

have trust in online vendor they tend to expend less effort on searching for information about the
online seller and thus executing the online transaction. Trust in vendor helps in reducing the nonmonetary cost and raises the perceived value of a consumer when purchasing online on a vendors
website (Kim et al. 2012, p. 244).
Wang and Wang (2010, p. 600) acknowledge that based on the prospect theory perceived value
will influence the online purchase intention. Past research on e-commerce context had define
perceived value as the consumers assessment of benefits against costs when shopping with an
online vendor (Zeithamal 1988, p. 13). The perceived value of a transaction with an online
vendor is the net benefit (Kim et al. 2012, p. 244). Besides, past research had also proved that
perceived value of a product influences ones purchase intention (Chang & Wildt 1994).
Furthermore, studies have also confirmed the relationship between perceived value and purchase
intention in the e-commerce context (Chang & Wang 2011; Kim et al. 2012).
H6: Perceived value mediates the relationship between trust in vendor and online purchase
intention.

2.8 Famility and Trust in Vendor

Furthermore to its effect on behavioral intentions, familiarity could also affect trust in vendor in
two ways, example of vendor, Amazon.com (Gefen 2000, p. 729). Familiarity can build trust by
consumer if the vendor shows that they are reliable and ruin it when they fail to do so (Gefen
2000, p. 729). Besides, familiarity would provide a framework within the favorable expectation
from trusted vendor which they can be made (Gefen 2000, p. 729). According to the first
explanation, it presumed that familiarity with Amazon.com shows that past successful
interactions in which favorable expectations from vendor had been confirmed (Gefen 2000, p.
729). Then, it would increase consumers trust in vendors (Gefen 2000, p. 729). However,
increase familiarity refers to a better comprehension of what is happening during the interaction
with the vendor through website (Gefen 2000, p. 729). Thus, increase familiarity shall improve
consumers ability to keep the clear beliefs of what form their expectation of the favorable
vendor behavior (Gefen 2000, p. 729). In addition, according to Corbitt et al. (2003, p. 205), the
higher level of web experience has been related with higher levels of trust.
10

H7: Familiarity is positively related to trust in vendor.

2.9 Trust in Vendor and Perceived Risk

According to Jarvenpaa et al. (2000), trust in vendor shows the dependency of customer on an
online vendor who has the ability to provide the best products and services to its customers.
Consumers would perceived that carrying out transactions with the vendor or seller on the
internet involve significant risk if customers do not believe that vendor can provide good
products and services (Hsu et al. 2013, pp. 335). Perceived risk on online is identified by McCole
et al. (2010) and Tan and Sutherland (2004) that it relates to an environment where consumers
have to trust the technology used to search and purchase. Consequently, if vendor provides
warranties of products and return policies of merchandise, the perceived risk of customers can
reduced significantly (Shneiderman 2000, pp. 58). According to Pavlou and Gefen (2004), trust
in vendor will affect behaviour that is related to purchase, such as perceived risk. It is hard to
measure the actual risk as an objective reality (Jarvenpaa et al. 2000). The perception of risk
affects the behaviour of consumer rather than objective risk and research had focused on mainly
perceived risk (Jarvenpaa et al. 2000). Buyers are afraid those vendors do not deliver the right
products and services at the right time that promised (Pavlou & Gefen 2004). Trust in vendors
improve the belief of consumers about the internet vendors and weaken the perceived risk
towards online buying (Gefen 2000). According to Pavlou (2003, pp. 112), trust in an internet
vendor reduces the risk beliefs about online transaction with that vendor. Jarvenpaa et al. (2000)
find that consumer trust in vendors is negatively related to perceived risk.
H8: There is a negative relationship between trust in vendor and perceive risk.

2.10 Trust in Vendor and Attitude

According to Jarvenpaa et al. (2000), trust leads to positive attitude towards the online purchase
intention. Consumers online trusts in vendors are positively related to their attitudes towards the
online store (Jarvenpaa et al. 2000). Trust in vendors is positively associated with consumers
attitudes towards the site (Chen & Dibb 2010, pp. 330). Gefen (2000) finds that trust in online
11

vendor significantly affects the intentions of consumers to purchase and inquire about the
website. Theory of reasoned action shows a person perform a specific behaviour which
determined by his or her behavioural intention to perform the behaviour (Davis 1989).
Behavioural intention is determined by the persons attitude and subjective norm (Davis 1989).
The Theory of Reasoned Action does not specify the beliefs that might be operative for particular
behaviours (Pennington et al. 2003). Theory of Reasoned Action is very useful in describing the
attitudes and intentions of consumers (Pennington et al. 2003). According to Chow and Holden
(1997, pp. 283), company trust shows the direct influence on both attitudes towards product and
loyalty intentions. In the world of e-commerce, attitude of consumers is formed from trust in
vendors (Jarvenpaa et al. 2000).
H9: Trust in the vendor is positively related to the attitude.

2.11 Trust in Vendor and Perceived Value

According to Kim et al. (2012, pp. 244), when consumers perceived trust in internet vendors,
they tend to expend less effort in searching for vendors information and less cognitive effort
when carrying out transaction with the vendors that consumers are familiar with. Perceived trust
is able to reduce the transactions non-monetary cost such as effort and times required to search
and choose an internet vendor (Chiles & McMackin 1996). Perceived trust decrease the nonmonetary cost and it raises the perceived value when consumers purchasing products and
services on the vendors website (Kim et al. 2012). In the e-commerce, the influence of
perceived trust on perceived value is confirmed by Kim et al. (2012). Consumers perceived trust
towards vendor will reduce the non-monetary cost and would increase consumers perceived
value on purchase intention (Kim et al. 2012).
H10: There is a positive relationship between trust in vendor and perceived value.

2.12 Perceived Risk and Attitude Online Purchase Intention

Perceived risk has an extensive history in consumer behaviour literature where findings support
that perceived risk is more powerful at describing consumers behaviour since consumers are
12

more driven to prevent mistakes than to maximize utility in purchasing (Mitchell 1999, p. 163).
Perceived risk also can defined as a trustors belief regarding the possibility of losses and gains
without contemplating the relationships with particular trustees (Jarvenpaa et al. 2000).
Perceived risk is an uncertainty in the purchase environment where consumers may consider the
purchase outcomes and the importance or serious results associated with making a wrong or
unsuitable decision (Hunter et al. 2004).
Perceived risk may not necessarily the amount of money included with the purchase, or the
actual product itself, but being put at risk of losing money through credit card fraud (Andrews &
Boyle 2008). It can be associated with a security and privacy risk of personal information over
the internet (Doolin et al. 2005). For those respondents who buying on the internet less
frequently were more influenced by perceived risk in the internet than those who purchased more
frequently (Forsythe et al. 2006). As Forsythe and Shi (2003) mentioned earlier, perceived risk is
deemed as a barrier to successful transactions because of the fact that customers intentionally and
unintentionally perceive risk when judging products and services over the web. In short
consumers may perceive transactions to be not safety and uncertainty due to their being carried
out online (Biswas & Biswas 2004). Transaction risk also involved perceptions that the personal
information provided at the time may be misused (Drennan et al. 2006).
Findings tend to indicate that both adopters and non-adopters are pay attention on perceived risk
(Andrews & Boyle 2008). For instance, even when individuals using the web to purchase, they
are still be careful of the risks involved with the internet environment (Forsythe et al. 2006),
which means although expert internet users take action to protect their privacy, this still does not
positively effect on their online transaction behaviour (Drennan et al. 2006). Lu et al. (2005)
indicated that perceived risk is more essential to enduring users of online antivirus applications
than the leave and trial group. However, from some previous findings showed that perceptions
of risk about purchasing over the web can outweigh a consumers perceptions about the
advantages as well as acting as a primary barrier to doing so (Andrews & Boyle 2008). Similarly,
as Hsu & Chiu (2004) mentioned, some research have also noted a negative relationship between
perceived risk and attitude toward e-commerce. Based on the above arguments, we purpose the
following hypothesis is:
H11. There is a negative relationship between perceived risk and attitude.
13

2.13 Perceived risk and Online Purchase Intention

Perceived risk has a direct negative impact towards online purchase intention. (Vijayasarathy &
Jones 2000). Some researchers (Pires et al. 2004) noted that perceived risk towards online
purchasing had not related in buyer behaviour research. This is perhaps due to the crucial of
perceived risk to online purchasing was not obvious at that time (D'Alessandro et al. 2012).
Doolin et al. (2005) described that while buyers tend to perceive some risk in offline purchasing,
they are likely to relate more risk with online purchasing. Moreover, as individuals feel insecure
to make online transaction by uncertain, vague situations, they try to avoid such situations
(Hofstede 1980). It is indicated that the risk involved in online transaction may result from a
consumers inability to compare and inspect a products quality for themselves (Tan 1999), and
from compromising and providing personal information (Liebermann & Stashevsky 2002). Thus,
perceived risk can affects the volume of online purchases and the online purchasing decision
(Miyazaki & Fernandez 2001). Other than that, higher perceived online risk is often lead by
being unable fully to monitor and observe the retailers behaviour or concerns regarding the
security of online shopping (Chiu et al. 2012). Based on the argument, the following hypothesis
was proposed that:
H12. Perceived risk is negatively related to online purchase intention.
2.14 Conceptual Framework

14

Methodology
3.1 Research Design
The quantitative research was used in this research that allowed scholars to search for the
actualities of the observation by experimentally testing the relationship between experiential
marketing and experiential value through the hypothetico- deductive method (Jankowicz 2005).
According to Creswell (2014) noted that quantitative research is adopted to highlight on
numerical analysis and objective measurement of data collected with questionnaires based on
consumers online purchase intention. Moreover, primary data will be collected through crosssectional study in this research because of the need to study current online purchase intention
among the y-generation who are frequently using electronic devices to purchase goods and
services across the internet (Maghnati & Kwek 2013).

3.2 Measures
In this report, there are divided three parts into questionnaire. The first part of the questionnaire
consist general information about the online purchasing intention of the potential consumers. The
second part of the questionnaire is measure to test the independent variables and dependent
variables in this research. Scaled-response questions were acquired in the second part of the
questionnaire because scaling permits measurement of the intensity of respondents answers
(Churchill & Brown 2004, p. 329). Lastly, the third part of the questionnaire is identifies
personal profile of the respondents in this report.
The items are rated according to 5-point Likert scale for each variable which is acquired from
Shergill and Chen (2005). The measurement included 5 point Likert-type item to 1= strongly
disagree, 2= disagree, 3= neutral, 4= agree and 5= strongly agree (Shergill & Chen 2005). Five
items are form to create questionnaire in each part. From this research, the first independent
variable which is familiarity is obtained from Gefen (2000). Moreover, the second independent
variable is perceived value was acquired from Ponte et al. (2015). Whereas, another three
independent variables which is included trust in vendor, perceived risk, and attitude was
adopted from Hsu et al. (2013).

15

3.3 Sampling and Data Collection

The targeted respondents in our research are students who ranged from 18 to 26 years old
Faculty of Finance and Business at Tunku Abdul Rahman University College. The targeted
sample size was 280. Regards population, we asked for a random similar number of females and
males (Lee & Kwon 2011) by self-administered surveys and all respondents voluntarily
participated in the survey (Lee & Kwon 2011). A total of 280 questionnaires were distributed and
only 250 usable questionnaires were adopted in the analysis for this study after a thoroughly
checking. It required around 15 minutes to complete the survey questions.
The control variable in this research is the age of respondents. These questionnaires are given to
students in ages between 18 to 26 years old. As students have more experience in using the
Internet and to the fact that they will be the future users and buyers for this online shopping
(Syed Shah Alam et al. 2008). Some studies did suggest that students are the most suitable group
to be considered as young consumers (Sorce et al. 2005).

16

3.4 Pilot Test

A pilot test was conducted to respondent in advance to assure that the questionnaire is easy to
understand and error free (Maghnati & Kwek 2013). Shergill et al. (2005) claim that previous
researcher has applied pilot survey to a few people to assess in order to test how well are they to
understand the questionnaire.

3.5 Method of Analysis

After sort out the 250 of usable questionnaires from the survey, a number of test were performed
which are Preliminary Analysis, Descriptive Analysis, Scales Measurement, and Inferential
Analysis.

Non-response

Bias

Analysis,

Common

Method

Variances

Analysis

and

Multicollinearity Analysis are the analysis include in Preliminary Analysis. It was used to ensure
the quality of the findings of research (Bryman & Bell 2011). Non-response bias analysis is
conducted to examine whether the answers of respondents differ from potential answer of those
who did not answer (Deming 1990). However, common method variance analysis is applied to
measure the correlation between each variable (Lindell et al. 2001). Questionnaires had been
analysed by using Statistical Package for the Social Science (SPSS) software version 22. It
conducted different statistical analyses such as descriptive analysis, scale measurement which are
reliability and validity and also inferential analysis which include pearson correlation coefficient
analysis and multiple regression analysis (Guo et al. 2012).

17

4.0 Data Analysis and Finding

4.1 Preliminary Analysis
In order to carry out the research findings, different preliminary analyses were identified in this
research, including non-responses bias analysis, common method variance analysis and the
normality assumption test.
There are a lot of approaches to deal with non-response bias (Armstrong & Overton 1977). The
application of a two tail T test is a more strict process of applying the extrapolation method, in
order to ensure the target sample set was similar with those respondents who had submitted early
and those who submitted late (Armstrong & Overton 1977). Independent sample T-test was
proposed by Baxter et al. (2012) to evaluate non-response bias analysis if there are differences
between their responses. Both Armstrong and Overton (1977) and Baxter et al. (2012) suggested
a guideline for identifying non-response bias at the p> 0.05 level in which it can be concluded as
a different in significant and indicated the existence of non-response bias. According to the
statistical finding in this report, the non-response bias analysis in this research was found to have
non-significant due to p=0.002 (p<0.05). Hence, there were no questions found to have
difference in significant statistical in two tail test for non-response bias and the sample can be
treated as single data set two tail test for non-response bias.
Common method variance analysis will be carrying out after completed the non-response bias
(Poksakoff et al. 2003). Poksakoff et al. (2003) suggested applying the Haman single-factor test
which is statistical method can minimize the effect of common method variance on the results of
the research study. According to Podaskoff et al. (2003, p. 889), Harman single-factor test
requires loading of all the measures in a study into an exploratory factor analysis, with the
assumption that the existence of common method variance is rated by the emergence of either a
single factor or general factor accounting for the majority of covariance among measures. If
common method is bias and became a problem, the variance is more than 50% (Poksakoff et al.
2003), which a single factor will be the outcome for most of the variance in the construct model.
Hence, this research develops the Haman Single Factor Test to evaluate the common method
bias. Based on the statistical finding in this research, the percentage of variance extracted for
factors was 35.703% which is less than 50% of the rule of thumb (Poksakoff et al. 2003). Hence,

18

there is no problem with common method bias in this research and the next section will access
the normality assumption.
The multicollinearity analysis can be found from the values of Tolerance (TV) and Variance
Inflation Factor (VIF) as shown in Table 1. According to Hair et al. (2010), the high value of
correlation between independent variables is able to form problem in calculating the independent
regression coefficients for the correlated independent variables because the independence
assumption of normality of distribution will not improve by the milticollinearity analysis. The
results from Table 1 showed the outcome of the multicollinearity analysis by assessing the
Tolerance Value (TV) and Variance Inflation Factor (VIF). As indicated by Hair et al. (2010), the
rule of thumb by Hair et al. (2010) for Variance Inflation Factor (VIF) is less than 5.0. In Table 1,
all the values of VIF were less than 5.0 in which the VIF value ranged from 1.519 to 1.671. On
the other hand, the rule of thumb by Hair et al. (2010) for the values of Tolerance is more than
0.1. In Table 1, all the values for Tolerance were more than 0.1 ranged from 0.598 to 0.845. The
finding of Tolerance value and VIF from Table 1 showed that there is no problem for the
multicollinearity. Hence, based on the multicollinearity analysis, the independence assumption of
normality test can be evaluated.
Table 1: Statistical Findings on Multicollinearity Analysis
Coefficientsa

Model
(Constant
1 )

Unstandardized

Standardized

Collinearit

Coefficients
B

Std. Error

Coefficients
Beta

y Statistics
Tolerance

3.323

1.303

Sig.

2.549

.011

VIF

1.67
T_PV

0.140

0.071

0.121

1.988

.048

0.598

1
1.30

T_TRV

0.229

0.073

0.169

3.147

.002

0.769

0
1.18

T_RI

-0.128

0.060

-0.109

-2.131

.034

0.845

4
1.64

T_AT
T_FAM

0.248
0.319

0.079
0.054

0.189
0.339

3.133
5.857

.002
.000

0.607
0.658

8
1.51

19

9
Note: Dependent Variable: T_INTT= Online Purchase Intention

4.2 Descriptive Analysis

Demographic Feature
Gender

Frequency Percentage of Respondents

125
Male-50%
125
Female-50%
Age
57
18-19 years old- 22.8%
144
20-21 years old- 57.6%
42
22-23 years old- 16.8%
5
24-25 years old- 2%
2
>26 years old- 0.8%
Educational level
54
Diploma- 21.6%
196
Bachelor of Degree- 78.4%
0
Master-0%
0
Others-0%
Table 2: Demographic Statistic of Respondent
Based on the demographic statistic as showed in table 2, there are total 250 students took part in
this survey. Demographic feature are further divided into three categories, which are gender, age,
and educational level of respondents. Statistic had showed that gender is equally divided into 125
male respondents (50 percent) and 125 female respondents (50 percent). Most of the students
were between the ages of 20 to 21 years old (57.6 percent). Moreover, the student respondents
were mainly from bachelor of degree with total 196 respondents (78.4 percent) and 54
respondents were from diploma (21.6 percent).

20

4.3 Reliability and Validity Tests

4.3.1 Reliability Test
Variables

Reliability

Perceived Value

0.760

Trust in Vendor

0.814

Perceived Risk

0.812

Attitude

0.837

Online Purchase Intention

0.852

Familiarity
0.818
Table 3: Reliability test of variables
All the variables were tested by using the Cronbach alpha reliability analysis for the consistency
reliability. According to Cavana et al. (2001), the 0.7 coefficient was used in the analysis as a
guideline for Cronbach alpha reliability analysis. Based on Table 3, the Cronbach alpha for all
the variable were ranged from the highest reliability of 0.852 (Online Purchase Intention) to the
lowest reliability of 0.760 (Perceived Value). The result concluded that the scales of
measurement of the variables were all stable and consistent.

21

4.3.2 Validity Test

Table 4: Results of factor analysis
Factor's Name

Variable

Online Purchase
Intention
I am considering purchasing from this website now.
I would seriously contemplate buying from this
website.
It is likely that I am going to buy from this website.
I am likely to make future purchases from this
website.
Familiarity

Perceived Value

Perceived Risk

Trust In
Vendors

I am familiar with searching for products through the

Internet.
I am familiar with buying products via the Internet.
I am familiar with this website.
I am familiar with inquiring about product ratings on
the Internet.
Considering the money I pay to purchase products on
this website, online shopping here is a good deal.
Considering the effort I make in shopping on this
website, online shopping here is worthwhile.
Considering the risk involved in shopping on this
website, online shopping here is of value.
Overall, online shopping on this website delivers me
good value.

Factor
Loadings

Eigenvalue

Cronbachs
Reliability
Coeficients

0.734

7.498

0.852

1.950

0.818

1.676

0.76

1.341

0.812

1.157

0.814

1.006

0.837

0.734
0.793
0.779
0.797
0.780
0.631
0.660
0.763
0.684
0.624
0.687

I feel that individual transactions are not risky.

I feel that I will not suffer a significant loss when
carrying out individual transactions.
There will be no problems in carrying out individual
transactions.

0.823

The vendor is trustworthy.

The vendor keeps promises and commitments.
This vendors behaviour meets my expectations.

0.750
0.861
0.796

0.806
0.840

I like the idea of using the internet to shop from this

site.
0.788
Using the internet to shop from this site is a good idea.
0.845
Purchasing goods from this site is a wise decision.
0.687
Note: KMO Measure of Sampling Adequacy= 0.890; p=0.000 (p< 0.05); df= 210
Cumulative Percentage Rotation Sums of Squared Loadings = 69.652
Attitude

22

Under validity measurement, construct validity was adopted and factor analysis was utilized to
measure the construct validity (Cavana et al. 2001). The results of factor analysis were presented
above in Table 4. Total 21 items were tested in factor analysis. Based on the analysis above, it
was appropriate to use factor analysis because the value of Kaiser-Meyer-Olkin (KMO) was
0.890 which is between 0.5 and 1.0. The Bartlett test of sphericity in the statistical test was
significant (p=0.000; d.f.= 210) for all the correlations within a correlation matrix (p<0.05). The
eigenvalues as shown in the table for all the constructs were all greater than 1.0 that based on the
principal components analysis and VARIMAX procedure in orthogonal rotation. The eigenvalues
ranged from the lowest 1.006 (Attitude) to the highest value of 7.498 (Online Purchase
Intention). The factor loadings for all 21 items were more than 0.50 in term of the validity of
convergent. The discriminant validity means all items were allocated correspond to the different
constructs. Hence, the respective constructs were supported by the items and they were not
overlapping.

23

4.4 Inferential Analysis

4.4.1 Bivariate Regression Analysis
The bivariate regression is a process for deriving a mathematical relationship in the form of an
equation, between a single metric dependent and a single metric independent variable (Hair et
al., 2006; Malhotra et al., 2006, p.692). Bivariate regression analysis was applied to test the
seventh (H7), eighth (H8), and eleventh hypothesis (H11).
Table 5(a): Results of bivariate regression analysis for this research (H7)
Variables
Unstandardized Beta Coefficients
0.287
Familiarity
Notes: Dependent Variable: Trust in Vendor;

t-value
7.189

Significant
0.000

R= 41.5 percent; R Square= 17.2 percent; Adjusted R Square= 16.9 percent;

F= 51.684; P=0.000 (p<0.05)
The p value of Familiarity (p=0.000) is less than the alpha value of 0.05. The value of the
unstandardized beta coefficient is 0.287 indicates a positive relationship between Familiarity and
Trust in Vendor. Hence, Hypothesis 7 (H7) is supported.

Table 5(b): Results of bivariate regression analysis for this research (H8)
t-value
Variables
Unstandardized Beta Coefficients
Trust in Vendor
-0.331
-4.702
Note: Dependent Variable: Perceived Risk;

Significant
0.000

R= 28.6 percent; R Square= 8.2 percent; Adjusted R Square= 7.8 percent;

F=22.109; P=0.000 (p<0.05)
The p value of Trust in Vendor (p=0.000) is less than the alpha value of 0.05. The unstandardized
beta coefficients value is -0.331. Hence, the research concludes that Trust in Vendor is negatively
related to Perceived Risk. Hypothesis 8 (H8) is supported.

Table 5(c): Results of bivariate regression analysis for this research (H11)
Variables

Unstandardized Beta Coefficients

24

t-value

Significant

Perceived Risk
-0.245
Note: Dependent Variable: Attitude;

-4.474

0.000

R= 27.4 percent; R Square= 7.5 percent; Adjusted R Square= 7.1 percent;

F=20.018; P=0.000 (p<0.05)
The p value of Perceived Risk (p=0.000) is less than the alpha value of 0.05. The value of
unstandardized beta coefficient is -0.245 indicated the negative relationship of Perceived Risk
towards Attitude. The hypothesis 11 (H11) is supported.

4.4.2 Multiple Regression Analysis

According to Hair et al. (2006), multiple regression analysis is used to analyse the linear
relationship between a multiple independent variables and dependent variable by figuring the
coefficients for the equation of a straight line. Hence, it is the appropriate method to test the
relationship. Multiple regression analysis was applied to test the five hypotheses (H1, H12, H3,
H2, and H5).

Table 6: Results of multiple regression analysis for this research (H1, H12, H3, H2, and H5)
Variables

Unstandardized Beta t-value

Coefficients
Familiarity
0.319
5.857
Perceived Risk
-0.128
-2.131
Attitude
0.248
3.133
Trust in Vendor
0.229
3.147
Perceived Value
0.149
1.988
Note: Dependent Variable: Online Purchase Intention
R= 68.1 percent; R Square= 46.3 percent; Adjusted R Square= 45.2 percent;

Significant
0.000
0.034
0.002
0.002
0.048

F= 41.950; P=0.000a (p<0.05)

As for Hypothesis 1 (H1), the p value of Familiarity (p=0.000) is less than the alpha value of
0.05 as shown in Table 8. The value of unstandardized beta coefficient is 0.319. Hence, the
research concludes that Familiarity is positively related to Online Purchase Intention. Hypothesis
1 is supported.

25

The result of the multiple regression analysis for Hypothesis 12 (H12) was presented in Table 8.
The p value of Perceived Risk (p=0.034) is less than the alpha value of 0.05. The value of
unstandardized beta coefficient is -0.128 which indicates the negative relationship between
Perceived Risk and Online Purchase Intention. Therefore, research concludes that Perceived risk
is negatively related to Online Purchase Intention. Hypothesis 12 is supported.
The result of the multiple regression analysis for Hypothesis 3 (H3) was presented in Table 8.
The p value of Attitude (p=0.002) is less than the alpha value of 0.05. The unstandardized beta
coefficient is 0.248. Therefore, research had concluded that Attitude is positively related to
Online Purchase Intention. Hence, Hypothesis 3 is supported.
The result of the multiple regression analysis for Hypothesis 2 (H2) was presented in Table 8.
The p value of Trust in Vendor is 0.002 which is less than the alpha value of 0.05. The value of
unstandardized beta coefficient is 0.229. The research showed that trust in Vendor is positively
related to Online Purchase Intention. The Hypothesis 2 is supported.
For Hypothesis 5, the p value of Perceived Value (p=0.048) is less than the alpha value of 0.05 as
shown in the Table 8. The unstandardized beta coefficient value is 0.149. Therefore, research
concludes that Perceived Value is positively related to Online Purchase Intention. Hypothesis 5 is
supported.

4.4.3 Mediated Regression Analysis (H4 and H6)

Table 7(a): Result of mediated multiple regression (Mediator analysis) (H4)
Independent Variable

Attitude (Mediator)

26

Online

Purchase

Intention

(Dependent

Variable)
Trust in Vendor

Model 1
0.348*
(p=.000)
(1st equation)

Model 2
0.607*
(p=.000)
(2nd equation)

Attitude

Model 3
0.419*
(p=.000)
(3rd equation)
0.535*
(p=.000)
(3rd equation)

*p<0.05
According to result from Table 7(a), in the first equation Trust in Vendor (independent variable)
is significantly influences the Attitude (mediator); Trust in Vendor (independent variable)
significantly affects the Online Purchase Intention (dependent variable); both Trust in Vendor
(independent variable) and Attitude (mediator) affects Online Purchase Intention (dependent
variable) significantly. Hypothesis 4 (H4) is supported because the beta value of trust in vendor
in the third equation (beta=0.419) is smaller than the beta value of trust in vendor in the second
equation (beta=0.607), decreasing by 0.188 (0.607-0.419). In conclusion, attitude does act as a
mediator in mediating the relationship between trust in vendor and online purchase intention.

Table 7(b): Result of mediated multiple regression (Mediator analysis) (H6)

Independent

Perceived Value(Mediator)

Online Purchase Intention (Dependent

Model 1
0.428*
(p=.000)

Variable)
Model 2
0.607*
(p=.000)

Variable
Trust in Vendor

27

Model 3
0.423*
(p=.000)

(1st equation)

(2nd equation)

Perceived Value

(3rd equation)
0.429*
(p=.000)
(3rd equation)

*p<0.05
According to the finding from Table 7(b), trust in vendor (independent variable) is significantly
influences the perceived value (mediator) in the first equation; Trust in vendor (independent
variable) significantly influence the on the online purchase intention (dependent variable) in the
second equation; both trust in vendor (independent variable) and perceived value (mediator)
significantly influence online purchase intention. The Hypothesis 6 (H6) is supported because the
beta value of trust in vendor in the third equation (beta= 0.423) is smaller than the beta value of
trust in vendor in the second equation (beta= 0.607), diminishing by 0.184 (0.607-0.423). In
conclusion, trust in vendor does act as a mediator in mediating the relationship between trust in
vendor and online purchase intention.

28

5.1 Discussion and conclusion

As virtual community becomes more necessary as a criterion for attracting and retaining
customers, many corporations are progressively concentration on online-buying environment to
expand their performance (Ku 2012). Based on the literature reviews, there are no argument for
the little study about how perceived risk influence individual online purchase intention as well as
test whether attitude is a mediator for trust in vendor and online purchase intention. Therefore,
these are the gaps for this research paper. Other than that, this research conducted a conclusive
study of several determinants which are familiarity, perceived risks, trust in vendor, perceived
value and attitude towards online purchase intention. This finding investigated that the
familiarity may facilitate shopper accumulate information regarding shopping for on Ecommerce and so would become more skillful while buying (Santos & Fernandes 2011).
Consumers who are familiarity with the internet could reflect the ability of consumer to search
for information over the internet (Gefen 2000, p. 729). Therefore, internet user who is familiar
with the website will have a higher intention and confidence level in the online purchase (Sultan
et al., 2002). Moreover, the trusting beliefs could affect the intention of consumers to purchase
online (Jarvenpaa 2000). Trust is become an essential outcome as consumers judgement towards
online trust (Tan & Sutherland 2004, pp. 53), and placed their trust before make intent to
purchase online product over the internet (Jarvenpaa et al. 2000, pp. 47). Hence, trust is able to
affect consumers decision on online purchase intention on website (Gefen 2000). Besides that,
the attitude of consumer is important toward online purchase intention because of the positive
attitudes will lead consumers purchase on the website with high intention (Hsu et al. 2014,
p.333). In addition to that, attitude is act as a mediator that will influence the relationship
between trust in vendor and online buying intention (Bianchi & Andrews 2012, p.257). The next
element that would influence the customers decision is perceived value towards online buying
intention. Consumers could evaluate the attributes and benefits of a product and service while
making a transaction (Chang & Wang 2011, p.340). Because it is related to the willingness of a
consumer to shop online is necessary when a vendor could provide maximum value to consumer
(Ponte et al. 2014, p. 290). In short, perceived value is positively related to online purchase
intention (Chang & Wang 2011, p.340). Besides that, based on the past findings had also proved
that perceived value of a product influences ones purchase intention (Chang & Wildt 1994).
Therefore, perceived value also could act as a mediator to mediate the relationship between trust
29

in vendor and online buying intention. Furthermore, familiarity could affect consumer built trust
in vendor (Gefen 2000, p. 729). This is because the higher the familiarity of consumers towards
in vendor, the higher the trust (Gefen 2000, p. 729). Thus, familiarity is positively influence the
trust in vendor (Corbitt et al. 2003, p. 205). In addition to that, perceived risk of consumers is
negatively influence trust in vendor. Because trusts in vendors enhance the belief of consumers
concern about the internet vendors however it is declined the perceived risk towards online
buying intention (Gefen 2000). On the top of that , Chen and Dibb (2010, pp. 330) had proven
that the relationship between trust in vendors is associated with consumers attitudes towards the
website since there are significantly affects the intentions of consumers to inquire and purchase
about the website (Gefen 2000). Besides that, the online purchase intention also influence by
trust in vendor towards perceived value of consumer. Due to the trustworthy on a seller and
vendor could reduce the reduce the transactions non-monetary cost such as time required and
effort to seek and choose an internet vendor while consumer purchase a product and service
through internet (Chiles & McMackin 1996). Perceived risk is negatively influence on attitude of
consumers towards online purchase intention. Because past research had proved that individuals
still are be careful of the risks involved with the internet environment when they purchase over
the internet (Forsythe et al. 2006). Thus, there are negative relationship between perceived risk
and online purchase intention. Lastly, the perceived risk towards online purchase intention also
could influence the customer decision while buying a product over the internet. Because higher
perceived risk is always caused by being unable fully to observe the sellers behaviour regarding
the security of online shopping (Chiu et al. 2012). In short, perceived risk is negatively influence
online purchase intention. Based on the overall result, the relationships between various
independent variables towards online purchase intention are clearly stated from this study. The
hypotheses are shown that supported by the inferential statiscal. As a conclusion, these five
elements which are familiarity, trust in vendor, perceived risk, attitude and perceived value that
could influence consumers decision towards online buying intention.
5.2 Theoretical and Managerial Implications
Based on the past literature, researchers had investigate the factors that influence consumers
intention to purchase online. Transaction Cost Perspective (TCP), Elaboration Likelihood Model
(ELM), Theory of Planned Behavior (TPB), Theory of Acceptance Model (TAM) are some of
30

theories applied in the previous studies. This research paper aim to study the effects of perceived
risk towards individual intention to purchase online. Besides, this research paper also aim to test
whether attitude is a mediator for trust in vendor and online purchase intention. These are the
research gaps overlooked by previous researchers based on the topic of online purchase
intention. By filling up these research gaps and gaining and insight towards these gaps helps one
such as businesses or firms in retaining their customers and also increase their productivity in an
efficient and effective way. To our knowledge, trust and familiarity are the vital factors that affect
consumers online purchase intention. As trust and familiarity would either directly or indirectly
influence perceived risk, perceived value and attitude towards online purchase intention. Several
theories are further discussed and brought up in this study such as Theory of Planned Behavior
(TPB), Theory of Reasoned Action (TRA), Social Exchange Theory and also Technology of
Adopted Model (TAM). These theories mainly influence and focused on consumers attitude and
behavioral towards online purchase intention. Consumers who tend to score high in trust in
vendor and also familiarity will tend and have the intention to purchase online as their attitude
and behavioral would change based on their degree of trust and familiarity towards a vendor. An
individual online purchase intention is the dependent variable and also the key component of this
research paper. Besides, the antecedents of online purchase intentions such as trust in vendor,
familiarity, perceived risk, perceived value and attitude are also tested in this research paper in
order to identify the relationship between these factors towards the dependent variable which is
individual online purchase intention. The result of the empirical data of this research paper had
proved that the relationship between these factors towards the dependent variable is proved and
supported to be effective. Furthermore, the conceptual framework developed in this research
paper is also supported by empirical data and findings. Attitude has also be proven to be a
mediator for trust in vendor and online purchase intention. Other than that, the relationship of
perceived risk towards online purchase intention is supported and proven to be negatively
related.
5.3 Limitation and Recommendation for further research
Even though these research findings provide some new insights to researchers but there are
limitation found in this study. The studys sample is comprised of Tunku Abdul Rahman
University College undergraduate students and majority of whom were Chinese Malaysians.
31

Therefore, the results from the study could not be applied to generalize to represent the
population of Malaysian. Furthermore, this study does not look into the influence of gender
differences in moderating the relationship between the antecedents and customer online purchase
intention as Jayawardhena et al. (2007) claim that gender has a significant influence on online
purchase intention. Moreover, the uses of cross-sectional research design only able to reveal the
net effect of predictor variable towards a particular criterion variable at a specific point in time
(Cavana et al. 2001). It will not able to describe how the determinants of antecedents change
over time in a long-term trend in the online shopping environment (Zhao et al. 2012).
According to the limitations of this research, a few recommendations would be suggested for
further research to enhance the research in the antecedents of online purchase intention. It was
recommended that researcher should distribute the questionnaire through online to invite more
potential consumers from different races that who have strong intention to purchase online. In
addition, it also proposed to examine the relationship between the antecedents and online
purchase intention based on the difference of gender as a mediator in the relationship of the
antecedents and online purchase intention (Kwek et al. 2010). On the other hand, longitudinal
studies that repeatedly measure the same sample units of a population over a period of time is
highly recommend to be adopted in the future study to evaluate the changes of antecedents of
online purchase intention over the time (Burns & Bush 2003).

32

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Appendix
44

Questionnaires
Perceived Value (PV)
PV1. Considering the money I pay to purchase products on this website, online shopping here is
a good deal.
PV2. Considering the effort I make in shopping on this website, online shopping here is
worthwhile.
PV3. Considering the risk involved in shopping on this website, online shopping here is of value.
PV4. Overall, online shopping on this website delivers me good value.
Source: Ponte, EB, Truijillo, EC & Rodriguez, TE 2015, Influence of trust and perceived value
on the intention to purchase travel online: Integrating the effects of assurance on trust
antecedents,

Tourism

Management,

vol.

47,

pp.

286302.

DOI:

10.1016/j.tourman.2014.10.009
Trust in the Vendor (TRV)
TRV1. The vendor is trustworthy.
TRV2. The vendor keeps promises and commitments.
TRV3. This vendors behaviour meets my expectations.
Source: Hsu, MH, Chuang, LW & Hsu, CS 2013, Understanding online shopping intention: the
roles of four types of trust and their antecedents, Internet Research, vol. 24, no. 3, pp. 332-352.
DOI: 10.1108/IntR-01-2013-0007
Perceived Risk (RI)
RI1. I feel that individual transactions are not risky. (R)
RI2. I feel that I will not suffer a significant loss when carrying out individual transactions. (R)
RI3. There will be no problems in carrying out individual transactions. (R)

45

Source: Hsu, MH, Chuang, LW & Hsu, CS 2013, Understanding online shopping intention: the
roles of four types of trust and their antecedents, Internet Research, vol. 24, no. 3, pp. 332-352.
DOI: 10.1108/IntR-01-2013-0007
Attitude toward Online Shopping (AT)
AT1. I like the idea of using the internet to shop from this site.
AT2. Using the internet to shop from this site is a good idea.
AT3. Purchasing goods from this site is a wise decision.
Source: Hsu, MH, Chuang, LW & Hsu, CS 2013, Understanding online shopping intention: the
roles of four types of trust and their antecedents, Internet Research, vol. 24, no. 3, pp. 332-352.
DOI: 10.1108/IntR-01-2013-0007
Intention to purchase (INTT)
INTT1. I am considering purchasing from this website now.
INTT2. I would seriously contemplate buying from this website.
INTT3. It is likely that I am going to buy from this website.
INTT4. I am likely to make future purchases from this website.
Source: Hsu, MH, Chuang, LW & Hsu, CS 2013, Understanding online shopping intention: the
roles of four types of trust and their antecedents, Internet Research, vol. 24, no. 3, pp. 332-352.
DOI: 10.1108/IntR-01-2013-0007
Familiarity (FAM)
FAM1. I am familiar with searching for products through the Internet.
FAM2. I am familiar with buying products via the Internet.
FAM3. I am familiar with this website.
FAM4. I am familiar with inquiring about product ratings on the Internet.
Source: Gefen, D 2000, E-commerce: the role of familiarity and trust, The international
Journal of Management Science, vol. 28, no.6, pp. 725-737. DOI: 10.1016/S03050483(00)00021-9

46

Date: 17/11/2015
Dear Respondent,
My name is Tan Pei Jung, a group leader for a research team. Our group members consist of Tan
Pei Jung, Han Min Yi, Lim Shin Naa, Low Jia Huoy and Chung Jia Hao. Currently, we are
involving in an academic research project with a research tittle "The Antecedents of Online
Purchase Intention. You are invited to participate in this research project. The objective of this
research project is to examine the determinants of online purchase intention.
Your participation in our research project is completely voluntary and you may decline or leave
blank any questions you don't wish to answer. There are no know risks to your participation in
this research project. We promise that your responses will remain confidential and anonymous.
Furthermore, this survey is strictly for educational purpose and will not be used for any other
purpose.
It should take approximately 15 minutes to complete the survey questions. If you agree to
participate in this research project, please answer all the questions as honestly as possible and
return the completed questionnaire promptly. If you have any questions or concerns about
completing the questionnaire or about participating in this study, you may contact me at this
number 018-2102161 or by email me at peijung_1604@hotmail.com.
Sincerely,
Tan Pei Jung
(Tan Pei Jung)

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Section A
In this section, Perceived Value, Trust in the Vendor, Perceived Risk, Attitude toward Online
Shopping, Intention to Purchase, and Familiarity are collected.
Instruction: Please select by circling the response option that best represents your opinion to the
following questions.

Perceived Value
Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
1.

PV1

Considering the money I pay to purchase

products on this website, online shopping

2.

PV2

PV3

PV4

worthwhile.
Considering the risk involved in
shopping on this website, online

4.

here is a good deal.

Considering the effort I make in shopping
on this website, online shopping here is

3.

shopping here is of value.

Overall, online shopping on this website
delivers me good value.

Trust in the Vendor

Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
5.
6.

TRV1 The vendor is trustworthy.

TRV2 The vendor keeps promises and

7.

commitments.
TRV3 This vendors behaviour meets my

expectations.
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Perceived Risk
Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
8.

RI1

I feel that individual transactions are not

9.

RI2

risky. (R)
I feel that I will not suffer a significant
loss when carrying out individual

10.

RI3

transactions. (R)
There will be no problems in carrying out
individual transactions. (R)

Attitude toward Online Shopping

Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
11.

AT1

I like the idea of using the internet to

12.

AT2

shop from this site.

Using the internet to shop from this site is

13.

AT3

a good idea.
Purchasing goods from this site is a wise

1
1

2
2

3
3

4
4

5
5

decision.

Intention to Purchase
Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
49

14.

INTT

I am considering purchasing from this

15.

1
INTT

website now.
I would seriously contemplate buying

16.

2
INTT

17.

3
INTT
4

from this website.

It is likely that I am going to buy from

this website.
I am likely to make future purchases

from this website.

Familiarity
Response key:
(1 = Strongly Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree)
18.

FAM1

I am familiar with searching for

1

19.

products through the Internet.

FAM 2 I am familiar with buying products via

20.
21.

the Internet.
FAM 3 I am familiar with this website.
FAM 4 I am familiar with inquiring about

1
1

2
2

3
3

4
4

5
5

product ratings on the Internet.

50

Section B
In this section, information is collected for categorization purpose.
Instruction: Please tick the appropriate boxes.
22. What is your gender?
1

Male

Female

23. What is your age range?

1

18-19 years old

20-21 years old

22-23 years old

24-25 years old

26 years old and above

24. What is your current educational level?

1

Diploma

Bachelor of Degree

Master

Others (Please specify): _____________

THANK YOU FOR ANSWERING IN THIS QUESTIONNAIRE

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