Factor Influencing Trust in Internet Sho

International Journal of Advanced Business and Management Vol 1, Issue 1
Factor Influencing Trust in Internet

Shopping
Li Xue Yang,
Abdul Rahman* orcid.org/0000-0001-6044-9051;
Gan Connie orcid.org/0000-0003-4938-5688
Faculty of Business and Accounting, Linton University College, Malaysia.
*Correspondence Email Id: abdulrahman@ktg.edu.my,
*Contact No.: +6 012 236 8167
DECLARATION
I hereby declare and certify that this project dissertation title Factor Influencing Trust in
Internet Shopping is submitted to Linton University College in partial fulfillment for
Master in Business Administration, is my original work and this dissertation has not
formed the basis for award for any other Master, fellowship or any other similar
institution apart from the aforementioned institutions. This dissertation doesn’t in anyway
infringe on the works of other researcher or authors as due acknowledgement and
reference were laid to them.
1
Table of Contents
Chapter 1: Introduction........................................................................................................2
1.1 Introduction................................................................................................................2
1.1.1 Background Information.....................................................................................2
1.1.2 The E-commerce industry in China....................................................................4
1.2 Statement of the problem...........................................................................................5
1.1.3 Objectives of study.............................................................................................5
1.3 Research questions and Hypotheses..........................................................................6
1.3.1 Statement of hypotheses.....................................................................................7
1.4 Importance of the study.............................................................................................9
1.5 Purpose of the study...................................................................................................9
1.6 Chapter Scheme.......................................................................................................10
1.7 Summary..................................................................................................................10
Chapter 2 : Literature Review............................................................................................11
2.1 Chronological Literature Review............................................................................11
2.1.1 Content Analysis...............................................................................................12
2.1.2 Research Method Literature Review................................................................13
Chapter 3 Research Methodology.....................................................................................14
3.1 Introduction..............................................................................................................14
3.2 Research Approach..................................................................................................14
3.2.1 Study Design.....................................................................................................15
3.3 Research Setting......................................................................................................18
3.4 The Study Population And Sample..........................................................................19
3.4.1 The Sampling Criteria.......................................................................................19
3.5 Data Collection........................................................................................................20
2
3.5.1 Data Collection Instrument...............................................................................20
3.6 Reliability And Validity..........................................................................................22
3.6.1 Reliability.........................................................................................................22
3.6.2 Validity.............................................................................................................22
3.7 Pretesting The Questionnaire...................................................................................23
3.8 Ethical Considerations.............................................................................................24
3.9 Data Analysis...........................................................................................................24
3.10 Conclusion.............................................................................................................24
Chapter 4 Data Analysis, Results and Findings.................................................................25
4.1 Descriptive Statistics...............................................................................................25
4.1.1 Reputation.........................................................................................................25
4.1.2 Size...................................................................................................................27
4.1.3 Perceived Service Quality.................................................................................29
4.1.4 Perceived Site Quality......................................................................................30
4.1.5 Trust..................................................................................................................31
4.1.6 Purchase Intention............................................................................................33
4.2 Data Analysis...........................................................................................................38
4.2.1 Reliability Analysis..........................................................................................38
4.2.2 Correlation Analysis.........................................................................................42
4.2.3 Linear Regression Analysis..............................................................................48
4.3 Demographic characteristics of the Respondents....................................................59
4.4 Results Analysis.......................................................................................................69
4.5 Sampling Table........................................................................................................71
Chapter V: Conclusion......................................................................................................72
5.1 Overview of the Main Findings...............................................................................72
3
5.1.1 Reputation Affecting the Purchase Intention of Customers.............................73
5.1.2 Size Affecting the Purchase Intention of Customers........................................73
5.1.3 Perceived Service Quality Affecting the Purchase Intention of Customers.....73
5.1.4 Perceived Site Quality Affecting the Purchase Intention of Customers...........74
5.1.5 Trust Affecting the Purchase Intention of Customers......................................74
5.2 Discussion................................................................................................................75
5.2.1 Reputation.........................................................................................................75
5.2.2 Size...................................................................................................................75
5.2.3 Perceived Service Quality.................................................................................76
5.2.4 Perceived Site Quality......................................................................................76
5.2.5 Trust..................................................................................................................77
5.3 Implications of the Study.........................................................................................77
5.3.1 Theoretical Implications...................................................................................77
5.3.2 Managerial Implications...................................................................................78
5.4 Limitations...............................................................................................................81
5.5 Recommendations for Future Research...................................................................81
References..........................................................................................................................82
4
Chapter 1: Introduction
1.1 Introduction
1.1.1 Background Information
The Internet in its current form is primarily a source of communication, information and
entertainment but increasingly the Internet is also a vehicle for commercial transactions
(Swaminathan, Lepkowska-White, & Rao, 1999). Internet commerce involves the sales
and purchases of products and services over the Internet (Keeney, 1999). This new type
of shopping mode has been called online shopping, E-shopping, Internet shopping,
electronic shopping and web based shopping.
The Internet and World Wide Web have made it easier, simpler, cheaper and more
accessible for businesses and consumers to interact and conduct commercial transactions
electronically. This is practically the case when online shopping (i.e. Internet shopping) is
compared to the traditional approach of visiting retail stores (McGaughey & Mason,
1998). Traditional retailers and existing and potential direct marketers acknowledge that
the Internet is increasingly used to facilitate online business transactions (McGovern,
1998; Palumbo & Herbig, 1998). The Internet has altered the nature of customer
shopping behavior, personal-customer shopping relationships, has many advantages over
traditional shopping delivery channels, and is a major threat to traditional retail store
outlets (Hsiao, 2009).
Haubl and Trifts (2000) maintain the Internet has been basically used in two ways from a
marketing perspective. Companies use the Internet to communicate with customers.
Consumers also use the Internet for a variety of purposes including looking for product
information before making a purchase decision online. The growing interest in
understanding what factors affect consumers’ decisions to make purchases online has
been stimulated by the extensive growth and increase of online sales (Liao & Cheung,
2001; Ranganathan & Ganapathy, 2002; Shih, 2004; van der Heijden & Verhagen, 2004).
There are many reasons why consumers choose to shop online. For example, by
5
examining the lifestyle characteristics of online consumers, Swinyard and Smith (2003)
identify that consumers choose to shop online because they like to have products
delivered at home and want their purchases to be private. Furthermore, prior studies find
that factors, such as convenience, peer influence, the lower price of products sold online,
Internet experience, and ease in purchasing may influence consumers’ decision to shop
through the Internet (Chang, Cheung, & Lai, 2005; Limayem, Khalifa, & Frini, 2000;
Swinyard & Smith, 2003; Wee & Ramachandra, 2000).
Monsuwe, Dellaert, and Ruyter (2004) suggest five reasons that drive consumers to shop
online. Firstly, consumers can use minimal time and effort to browse an entire product
assortment by shopping online. Secondly, consumers can gain important information
about companies, products and brands efficiently by using the Internet to help them make
purchase decisions more accurately. Thirdly, when compared to traditional retail
shopping, online shopping enables consumers to compare product features, price, and
availability more efficiently and effectively. Fourthly, online shopping allows consumers
to maintain their privacy when they buy sensitive products. Finally, online shopping can
reduce consumers’ shopping time, especially for those consumers whose times are
perceived to be costly when they do brick-and- mortar shopping (Monsuwe et al., 2004).
1.1.2 The E-commerce industry in China
Electronic commerce is currently developing rapidly in China. In 2013, China ended last
year with 618 million Internet users and 500 million mobile Internet users, according to a
report published by state-affiliated research organization China Internet Network
Information Center (CNNIC). According to China Online Shopping Market Data from
IResearch (2013), China online transaction reached 1850 billion yuan with a 42.0% year-
on-year growth. Based on the forecast data of total social retail sales in 2013 from
Ministry of Commerce, the online transaction accounted for a 7.8% share of total social
retail sales of consumer goods, rising 1.6% than last year.
E-commerce in China was launched in 1998 by Jack Ma and his partners with a business
6
to business (B2B) online platform called Ailbaba.com (Backaler, 2010). Backaler (2010)
reveals that EBay was the first Western multinational to enter into the Chinese
ecommerce market in 2003, followed by Amazon. Furthermore, 2003 was a milestone for
Chinese e-commerce with the introduction of Alipay, Alibaba’s version of PayPal that
adds security to online payment (Backaler, 2010).
As shown from the Statistics in Beijing Business Today (2013), the transactions volume
of Taobao has reached 1,000 billion yuan. Most Chinese consumers did their online
shopping on Taobao, with 86% in 2013. And 81% targeted Taobao as the shopping
destination. Besides, Jingdong attracted 52%, Amazon with 21%, 51buy with 12%.
Taobao as the most popular electronic commerce platform has been chosen as the case
company of the thesis.
Recently, study on e-retail service quality has emerged in marketing journals

prominently. Although numerous researches have been published, yet none of it could
provide outstanding contributions in this field. So far, majority of these studies still
obtained some conceptual or methodological weaknesses. For instance, most of the
research is over dependent on quantitative measurements and some others are solely
qualitative oriented. However, certain patterns emerged through this collection of works.
(Rahman A., et al., 2018)
1.2 Statement of the problem
The adoption of the Internet as a way to purchase goods and services has seen an
increasing trend over the past two decades globally. Compared to traditional shopping,
the Internet not only facilitates transactions between buyers and sellers from anywhere at
any time, but also provides a wide range of product choices and a platform for
exchanging ideas for customers with low costs. To achieve the success of electronic
commerce, companies place great emphasis on attracting customers continuously and
building long-term relationship with customers on the web.
7
However, people still remain reluctant to make purchases on the Internet due to the lack
of trust toward businesses in the new electronic environment. Past researches have
indicated that consumers’ lack of trust constituted a key barrier to the use of Internet
shopping as well as long-term commitment to the relationship building. we can see the
some data from internet, in China there also has 44.3% person don't want shopping
online, because they worry about their cheating their money, they worried buy the items
has lower quality and they afraid their card information will be disclosure, so that is why
some consumer didn't trust online shopping. Gefen, Karahanna, and Straub (2003)
identified lack of consumer trust in Internet vendors as a major factor inhibiting online
purchases. Trust plays an essential role for facilitating online transactions between
consumers and electronic retailers and realizing the development of e-commerce to
consumers in the long run (Sonja, 2002).
1.2.1 Objectives of study
The broad objective of the research is to identify and analyze “Chinese consumers' online
shopping purchase intention of Taobao web site”. Specific objectives of the research are:
1. To provide an overall idea of the online shopping industry in China.
2. To know about various factors those are affecting the customers like to shop online in
China.
3. To identify the relevance importance of each factor that contributes provide good
service to customer.
4. To identify underlying dimensions, or factors, that explains the correlations among

variables.
5. To make recommendation on online shopping, make China online shopping industry is

getting better.
8
1.3 Research questions and Hypotheses
Figure 1 Conceptual Framework
From the figure 1 we can see, the reputation, size, perceived service quality and
perceived website quality that influence customer trust in online shopping, the customer
trust in online shopping influence customer purchase intention.
1.3.1 Statement of hypotheses
Reputation
The perceived reputation is defined as the extent to which consumers believe a selling
company is honest and concerned about its customers (Doney & Cannon, 1997). A
company with a good reputation indicated that long-term investments of resources, effort,
9
and attention to customer relationship building have been taken into great concern by that
company. Consumers tend to favor companies with a good reputation in the electronic
commerce as they perceive lower risk and uncertainty and know where to seek for help
from the public if something really goes wrong. Therefore this paper hypothesizes that:
H1: There is a positive and significant relationship between reputation and trust.
Size
Similar to reputation, customers’ perceived size of a company plays an important role in

forming their trust toward Internet shopping. Large size is a signal to buyers that the
company is successful and capable to compensate its customers even there’s transaction
failure (Jarvenpaa, Tractinsky, & Vitale, 2000). In addition, companies with large size are
believed to have more resources which enhance the level of trust in consumers.
Therefore, this paper hypothesized that:
H2: There is a positive and significant relationship between size and trust.
Perceived Service Quality
The perceived service quality is related to gaining consumer trust and building long-term
customer relationship by providing high-quality services (Grefen, 2002; Kim, Xu, &
Koh, 2004), including guarantees (Grefen, Karahanna, & Straub, 2003), warranties
(Grazioli & Jarvenpaa, 2000; Pennington, Wilcox, & Grover, 2003-2004), and
customized services (Doney & Cannon, 1997). A high level of perceived service quality
enables customers to have more trust in the Internet vendor and make commitment to the
relationship with the company. This paper therefore proposes the hypothesis that:
H3: There is a positive and significant relationship between service quality and trust.
10
Perceived Site Quality
A high level of perceived site quality implicates that customers find it easy and
convenient to find the information they need and make transaction on the particular
website. People tend to hold a high level of trust in the online shopping when they
perceive easy use as well as high quality of the website. This paper therefore proposes the
hypothesis that:
H4: There is a positive and significant relationship between site quality and trust.
Trust in Internet Shopping
Trust, defined as the consumers’ willingness to be vulnerable to the actions of an Internet

vendor in an online shopping transaction (Lee & Turban, 2001), is the basis of customers
participating in electronic commerce. Trust helps to reduce customers’ perceived
complexity and uncertainty in the online context thus a heightened level of trust
encourages consumers’ activities on the Internet. Hence, it is hypothesized in this paper
that:
H5: There is a positive and significant relationship between trust and customer purchase
intention.
1.4 Importance of the study
This research aims to explore the factors Consumer Trust in Taobao and the Moderating
Effect of Risk Aversion.
For companies which have already invested in online shopping, understanding the factors
affecting Chinese consumers buying behavior is important information as the companies
can develop better marketing strategies to convert potential customers into active ones.
From a multinational perceptive, if companies can improve their understanding of
11
Chinese e-consumers purchasing preference before they enter into the Chinese e-
commerce market, the information can increase the likelihood of success. From a
multinational perceptive, if companies can improve their understanding of Chinese e-
consumers purchasing preference before they enter into the Chinese e-commerce market,
the information can increase the likelihood of success.
For competitors, this study can find out why Taobao can be so successful, and they can
develop their company to be stronger. For online auction companies, this research can
provide reference for e-commerce companies to understand the factors that customers are
concern more, so as to improve these factors to enhance the security of shopping
environment to attract more customers.
1.5 Purpose of the study
The purpose of this study is to incorporating other potential driving factors to address
how they influence Chinese consumers' online shopping satisfaction of Taobao web site.
The study considers that other potential driving factors have not been tested to measure
Chinese consumers' online shopping satisfaction on Taobao.
1.6 Chapter Scheme
This dissertation is composed of five chapters. Chapter one is an introduction, it

introduces the research title, statement of the problem, conceptual framework, research
questions and the purpose and significance of the study.
Chapter two reviews the previous literatures which are related with research issues. It
divides into five sections: information factors that may influence shopping behavior, and
the brief introduction of Chinese e-commerce combine with Taobao.
Chapter three is focus on the methodology of the whole study. It indicates the deductive
approach and qualitative method, investigation method, questionnaire design, the
12
advantage and disadvantage of questionnaire, as well as data collection.
Chapter four mainly concentrates on questionnaire data presenting and analysis through
using various graphs and tables.
Chapter five which concludes the research findings, the reflection of the whole study, the
limitation of survey method, and the recommendation for future study.
1.7 Summary
This chapter provides an overview of the study, including the Chinese e-commerce, goals
and objectives and research methods, important background information. Also, the
research questions have been identified. Moreover, the research significant is expressed
briefly and finally, the whole structure of this dissertation is presented.
13
Chapter 2 : Literature Review
2.1 Chronological Literature Review
14
2.1.1 Content Analysis
Variable Number Percent (%)
Reliability 7 4.55%
Trust 20 12.99%
Service quality 35 22.73%
Website quality 41 26.62%
Risk 13 8.44%
Reputation 5 3.25%
Size 4 2.60%
Purchase intention 5 3.25%
Price 8 5.19%
External environment 1 0.65%
Buying behavior 15 9.74%
Total 154 100.00%
Table 2-2 Content Analysis
The table shows 11 variable, follow this we see the highest variable is “Website quality”
is 26.62%. Secondly is “Service quality” is 22.73. Third is “Trust” is 12.99% . This three
is highest variable. Next we see the lowest variable is “External environment” is 0.65%.
The second lower variable is “Size” is 2.60%. Third is “Purchase intention” is 3.25% and
“Reputation” is 3.25%. This three is lowest variable.
15
2.1.2 Research Method Literature Review

Year Location Sample Method
1999 Canada 54 Experimental Design
2002 China Non Research articles and lab experiments
and free simulation experiments.
2004 Singapore 30 Questionnaire
2005 Taiwan, China Non Model Analysis(SERVQUAL)
2006 China No Mention Questionnaire
2010 Hong Kong 259 Questionnaire
2010 Malaysia Non Model Analysis (TAM)
2010 Saudi Arabia 31 Questionnaire
2011 Hong Kong No Mention Questionnaire
2011 Malaysia 491 Questionnaire
2012 China 230 Questionnaire
2012 China Non Model Analysis
2012 Hong Kong Non Model Analysis(SERVQUAL)
2012 Iran 150 Questionnaire
2013 Bangladesh 60 Questionnaire
2013 Canada 30 Model Analysis(SER)
2013 China Non Literature Review Analysis
2013 China No Mention Questionnaire
2013 Malaysia No Mention Questionnaire
2013 Thailand No Mention Interview
2014 China Non Questionnaire
2014 Danish 250 Questionnaire
2014 Malaysia 395 Questionnaire
2014 Pakistan No Mention Questionnaire
2014 Taiwan, China 377 Questionnaire
16
Table 2-3 Research Method Literature Review

The table show 21 authors would like to use questionnaire as a research method. 5 author
prefer model analysis to questionnaire. Few author use interview. To sum up, most
researcher use questionnaire.
Chapter 3 Research Methodology
3.1 Introduction
In this chapter the research methodology used in the study is described. The geographical
area where the study was conducted, the study design and the population and sample are
described. The instrument used to collect the data, including methods implemented to
maintain validity and reliability of the instrument, are described.
3.2 Research Approach
A quantitative approach was followed. Burns and Grove (1993:777) define quantitative
research as a formal, objective, systematic process to describe and test relationships and
examine cause and effect interactions among variables. Surveys may be used for
descriptive, explanatory and exploratory research. A descriptive survey design was used.
A survey is used to collect original data for describing a population too large to observe
directly (Mouton 1996:232). A survey obtains information from a sample of people by
means of self-report, that is, the people respond to a series of questions posed by the
investigator (Polit & Hungler 1993:148). In this study the information was collected
through self-administered questionnaires distributed personally to the subjects by the
researcher.
A descriptive survey was selected because it provides an accurate portrayal or account of

the characteristics, for example behaviour, opinions, abilities, beliefs, and knowledge of a
particular individual, situation or group. This design was chosen to meet the objectives of
the study, namely to determine the knowledge and views of patients and family members
with regard to diabetes mellitus and its treatment regimen (Burns & Grove 1993:29).
17
3.2.1 Study Design
The research strategy provided a framework for designing a systematic study that would
address the study’s goals, objectives, and questions. This section summarizes the overall
study design, activities, and the extent of data resulting from this approach.
Figure 3–1 presents the study’s design. The study design reflects the logical flow from
the preliminary activities that initiated the study and the development of the preliminary
conceptual model through the data collection and analysis, the refinement of the
conceptual model, and the articulation of a set of working hypotheses.
• Preliminary activities—To justify and initiate the study, the researcher:
- Conducted an extensive literature review of writings on standards development,

previous research on standards development, theoretical frameworks and models
appropriate to the research. The review corroborated the need for this research
and provided support for the preliminary conceptual model.
- Conducted a series of preliminary interviews with experts in the standards arena

that confirmed the need for research on this topic and assisted the researcher in
identifying an initial list of issues related to standards development.
• Development of preliminary conceptual model—The researcher proposed a

preliminary conceptual model based on a review of the literature and the researcher’s
experiential knowledge to serve as a guiding framework for the research.
• Data collection, data reduction, and data analysis—The researcher collected data
sufficient to address the study’s three research questions by using multiple methods
of data collection and multiple sources of evidence. Collection and analysis was an
iterative process. The researcher coded the data as a method of data reduction.
Synthesis of the data involved comparing and checking data from various sources.
18
• Findings—The researcher reported findings from the data in two separate accounts:
By the end of 2014, China has a total of 320 million people use online shopping, and
a set of key findings is 67% Chinese people use Taobao.
• Revise and enhance the conceptual model—On the basis of the findings from the
data analysis, the researcher revised the preliminary conceptual model to represent
the advantage of Taobao.
• Derive working hypotheses—On the basis of the exploration and description of

Taobao, the researcher identified a set of working hypotheses. These statements,
based on study findings, reputation ，perceived service quality ，perceived website
quality，and trust in Internet to be tested in subsequent research.
• Member checks—The researcher engaged participants and other standards efforts to

respond to and comment on data and findings to their accuracy and credibility.
• Final report—The researcher compiled the results of all study activities into this
document.
Figure 3–1 identifies the primary sources and methods for collecting data (i.e.,
documentary evidence and survey questionnaire) and suggests that a central part of the
research is the data collection, data reduction, and data synthesis activities. These three
activities were linked in an iterative process. The researcher collected, analyzed, and
synthesized data, an understanding of which guided subsequent data collection. The study
design assumed an evolving understanding on the part of the researcher that guided the
purposeful collection of additional data.
A subset of a statistical population in which each member of the subset has an equal
probability of being chosen. A simple random sample is meant to be an unbiased
representation of a group. One of the best things about simple random sampling is the
19
ease of assembling the sample. It is also considered as a fair way of selecting a sample
from a given population since every member is given equal opportunities of being
selected. Another key feature of simple random sampling is its representativeness of the
population. Theoretically, the only thing that can compromise its representativeness is
luck. If the sample is not representative of the population, the random variation is called
sampling error.
An unbiased random selection and a representative sample is important in drawing

conclusions from the results of a study. Remember that one of the goals of research is to
be able to make conclusions pertaining to the population from the results obtained from a
sample. Due to the representativeness of a sample obtained by simple random sampling,
it is reasonable to make generalizations from the results of the sample back to the
population.
20
Figure 3–1 Study Design
3.3 Research Setting
Kolej University Linton (KUL) is a dynamic and fast growing higher learning institution
in Mantin ,Negeri Sembilan，Malaysia . Since its inception, over 22,000 students have
graduated from KUL. Currently, KUL has more than 4,700 students. Of this total, about
60% of them are international students from 62 countries, including People’s Republic of
China, Africa, the Middle East, Central Asia, South Asia, and the ASEAN region.
21
KUL, being an established and long-term key player in the higher education sector in
Malaysia has many competitive advantages including having a ‘purpose-built’ &
integrated campus that can accommodate up to 25,000 students and international linkages
with reputable universities in the United Kingdom.
3.4 The Study Population And Sample
According to Burns and Grove (1993:779), a population is defined as all elements

(individuals, objects and events) that meet the sample criteria for inclusion in a study.
The study population is all China consumers who have purchase on Taobao.
A convenient sample of 300 subjects was selected from mainland China and overseas
Chinese students . Mouton (1996:132) defines a sample as elements selected with the
intention of finding out something about the total population from which they are taken.
A convenient sample consists of subjects included in the study because they happen to be
in the right place at the right time (Polit & Hungler 1993:176). The sample included 150
female and 150 male Chinese. Available subjects were entered into the study until a
sample size of 300 was reached. Subjects who met the sample criteria were identified by
the researcher have used online shopping in China .
The sample size of 300 consumers were the total of subjects who were willing to
participate in the research and who met the sampling criteria during the 3 days period of
data collection.
3.4.1 The Sampling Criteria
Subjects included in the sample were selected to meet specific criteria. The volunteer had
to meet the following criteria to be included in the sample.
They should:
• have used on line shopping in China.

• be willing to participate
22
• be 16 years or older
• obtain the consent of parents/guardians to participate if they are less than 18 years
of age
• be either sex from any Chinese province.
3.5 Data Collection
3.5.1 Data Collection Instrument
A questionnaire was chosen as data collection instrument. A questionnaire is a printed

self-report form designed to elicit information that can be obtained through the written
responses of the subjects. The information obtained through a questionnaire is similar to
that obtained by an interview, but the questions tend to have less depth (Burns & Grove
1993:368).
Data was collected with the aid of questionnaires to evaluate the customer satisfaction of
on line shopping in China. And views on diabetes mellitus. Questionnaires were decided
upon because of the following:
• They ensured a high response rate as the questionnaires were distributed to

respondents to complete and were collected personally by the researcher.
• They required less time and energy to administer.
• They offered the possibility of anonymity because subjects’ names were not required
on the completed questionnaires.
• There was less opportunity for bias as they were presented in a consistent
manner.
• Most of the items in the questionnaires were closed, which made it easier to
compare the responses to each item. Apart from the advantages that have been
listed above, questionnaires have their weaknesses; for example, there is the
question of validity and accuracy (Burns & Grove 1993:368). The subjects might
23
not reflect their true opinions but might answer what they think will please the
researcher, and valuable information may be lost as answers are usually brief.
The questionnaires were used to collect the data. The questionnaires consisted mostly of
closed-ended questions and a few open-ended questions, as these provide more diverse
detail. In the open-ended questions, the subjects were required to respond in writing,
whereas closed-ended questions had options which were determined by the researcher
(Burns & Grove 1993:370). Open-ended questions were included because they allow
subjects to respond to questions in their own words and provide more detail. Closed-
ended questions were included because they are easier to administer and to analyse. They
are also more efficient in the sense that a respondent is able to complete more closed-
ended items than open-ended items in a given period of time (Polit & Hungler 1993:203).
The questionnaires were in both English and Chinese to enable those who did not
understand English to complete them in Chinese. For the two who could not read or
write, the researcher read and wrote their answers for them. They were given the
assurance that the answers would not be able to link their responses to them at the stage
of data analysis, therefore ensuring anonymity. The questionnaires consisted of sections 3
personal information. Section 3 aimed at gaining demographic data such as age, level of
education, income and gender. This information could assist the researcher when
interpreting the results, for example, whether subjects lacked knowledge of on line
shopping because they were uneducated, or whether they did not use on line shopping
due to lack of money.
3.5.2 Data Collection Procedure
Questionnaires were personally distributed by the researcher to the respondents and their
family members to complete. The researcher completed two questionnaires for those who
couldn't read. The data was collected over a period of six months. Researchers use mobile
App device to collect information, such as WeChat.
3.6 Reliability And Validity
3.6.1 Reliability
24
Polit and Hungler (1993:445) refer to reliability as the degree of consistency with which
an instrument measures the attribute it is designed to measure. The questionnaires which
were answered by volunteer, the volunteer different background, revealed consistency in
responses. Reliability can also be ensured by minimising sources of measurement error
like data collector bias. Data collector bias was minimised by the researcher’s being the
only one to administer the questionnaires, and standardising conditions such as exhibiting
similar personal attributes to all respondents, e.g., friendliness and support. The physical
and psychological environment where data was collected was made comfortable by
ensuring privacy, confidentiality and general physical comfort.
Subjects were requested not to write their names on the questionnaires to ensure
confidentiality.
3.6.2 Validity
The validity of an instrument is the degree to which an instrument measures what it is

intended to measure (Polit & Hungler 1993:448). Content validity refers to the extent to
which an instrument represents the factors under study. To achieve content validity,
questionnaires included a variety of questions on the knowledge of on line shopping in
China.(Polit & Hungler 1993:250).
Questions were based on information gathered during the literature review to ensure that
they were representative of what customer should know about how to use on line
shopping. Content validity was further ensured by consistency in administering the
questionnaires. All questionnaires were distributed to subjects by the researcher
personally. The questions were formulated in simple language for clarity and ease of
understanding. Clear instructions were given to the subjects and the researcher completed
the questionnaires for those subjects who could not read.
All the subjects completed the questionnaires in the presence of the researcher. This was
done to prevent subjects from giving questionnaires to other people to complete on their
behalf. For validation, the questionnaires were submitted to a researcher and statistician
25
at Kolej University Linton (KUL). As a result more questions were added to ensure
higher representativeness. Rephrasing of some questions was done to clarify the
questions and more appropriate alternative response choices were added to the closed-
ended questions to provide for meaningful data analysis (Burns & Grove 1993:373).
External validity was ensured. Burns and Grove (1993:270) refer to external validity as
the extent to which study findings can be generalised beyond the sample used. All the
persons approached to participate in the study completed the questionnaires. No single
person who was approached refused to participate. Generalising the findings to all
members of the population is therefore justified.
Seeking subjects who are willing to participate in a study can be difficult, particularly if
the study requires extensive amounts of time or other types of investment by subjects. If
the number of the persons approached to participate in a study declines, generalising the
findings to all members of a population is not easy to justify. The study needs to be
planned to limit the investment demands on subjects in order to increase participation.
The number of persons who were approached and refused to participate in the study
should be reported so that threats to external validity can be judged. As the percentage of
those who decline to participate increases, external validity decreases (Burns & Grove
1993:270).
3.7 Pretesting The Questionnaire
A pretest refers to a trial administration of an instrument to identify flaws. When a

questionnaire is used as a data gathering instrument, it is necessary to determine whether
questions and directions are clear to subjects and whether they understand what is
required from them. This is referred to as the pretesting of a questionnaire (Polit &
Hungler 1995:38, 711).
The researcher pretested the questionnaire on six respondents meeting the set criteria. All
of them answered the questions and no single question was changed following the pretest.
26
3.8 Ethical Considerations
The conducting of research requires not only expertise and diligence, but also honesty
and integrity. This is done to recognise and protect the rights of human subjects. To
render the study ethical, the rights to self- determination, anonymity, confidentiality and
informed consent were observed.
3.9 Data Analysis
After the data was collected it was organized and analyzed. For analysis of open-ended
questions, a computer programmer called Statistical Package for Social Sciences (SPSS)
was used. Data was analyzed by using descriptive statistics. Frequency tables were drawn
and from these the data was presented in pie diagrams and bar graphs. The open-ended
questions were analyzed through quantitative content analysis by the researcher with the
aim of quantifying emerging characteristics and concepts. Concept analysis is the process
of analyzing verbal or written communications in a systematic way to measure variables
quantitatively (Polit & Hungler 1995:209, 698).
3.10 Conclusion
The researcher used a quantitative, descriptive survey design. The questionnaires were
administered by the researcher herself to collect the data from a convenient sample of 300
subjects. The questionnaires had both closed and open-ended questions. The sample
characteristics included different ages, different education level, different occupation and
different incomes.
Permission was obtained from the Linton University. Consent was obtained from the
subjects themselves. Anonymity, self-determination and confidentiality were ensured
during administration of the questionnaires and report writing. Questionnaires were
distributed to subjects to ensure validity. Reliability and validity were further increased
by pretesting the questionnaire.
27
This chapter described the research methodology, including the population, sample, data
collection instruments as well as strategies used to ensure the reliability and validity of
the study.
Chapter 4 Data Analysis, Results and Findings
4.1 Descriptive Statistics

4.1.1 Reputation
Table 4-1 The Web Site is famous?
86.3% of the respondents agreed that Taobao is famous, however another 10.3% were not
sure.
Table 4-2 This web store has a good reputation?
40.7% of the respondents strongly agreed that Taobao has a good reputation, however
another 40.3% were not sure.
28
Table 4-3 The web site is well known?
86.3% of the respondents agreed that Taobao is well known, however another 8.7% were
not sure.
Summary
The majority of Taobao users agreed that Taobao is famous and well known. However
almost 40% of the respondents feel that there are skeptical of its corporate reputation.
4.1.2 Size
Table 4-4 This web store has wide range of goods?
92% of the respondents agree that on Taobao website has wide range of goods, however
29
Table 4-5 This web store is a big player in the market?
84.6% of the respondents agree that Taobao website is a big player in the market,
however another 10.3% were not sure.
Table 4-6 This web store is one of the industry’s biggest suppliers on the web?
84% of the respondents agree that Taobao website is one of the industry’s biggest
suppliers on the web, however another 10.3% were not sure.
Summary
The majority of Taobao users agreed that Taobao has wide range of goods. However
almost 10% of the respondents feel that there are sceptical of Taobao website the size not
big.
30
.
Table 4-7 This web store has fast delivery speed?
4.1.3 Perceived Service Quality

40.7% of the respondents strongly agreed that Taobao has fast delivery speed, however
Table 4-8 This web store has high payment reliability?
82% of the respondents strongly agreed that Taobao high payment reliability, however
Table 4-9 This web store provides good after sale services?
31
As much as 46.7% of respondents not sure that Taobao website would provides good
after sale services. More than 16.3% of respondents do not believe that Taobao will
provides good after sale services. There are just 30% believe website would provides
good after sale services.
Summary
The majority of Taobao users agreed that Taobao has high payment reliability. Besides,
Customers also believe Taobao website has fast delivery speed on Taobao website.
However almost 46% of the respondents feel that there are sceptical of Taobao website
the Perceived Service Quality.
4.1.4 Perceived Site Quality
Table 4-10 Overall, this site works very well technically
89.3% of the respondents agreed that Taobao site OF works very well
technically .However another 9.7% were not sure.
Table 4-11 This site is simple to navigate?
32
89% of the respondents agreed that Taobao website is simple to navigate. But
Table 4-12 On this site, it is easy for me to find the information I want?
81.7% of the respondents agreed that Taobao is easy for customers to find the
information they want. However, there are 14% were not sure.
Summary
The majority of Taobao users agreed that Taobao website works very well
technically and it is simple to navigate. Besides, on Taobao website, customer is
easy to get information. However almost 10% respondents feel that there are
sceptical of its Perceived Site Quality.
4.1.5 Trust
Table 4-13 I believe that the website would act in my best interest?
33
As much as 66.7% of respondents not sure that Taobao website would act in
customer best interest. More than 10% of respondents do not believe that Taobao
will for the sake of the interest of the customers. There are just 21% believe
website would act in customer best inter interest.
Table 4-14 I believe that the website is trustful in its dealings with me?
53.7% of the respondents are not sure to believe the information that Taobao
website store provided. Only 38.3% were believe the information from Taobao
website store. (53.7 & 34.0)
Table 4-15 I am prepared to give private information to this website?
33.7% of the respondents disagreed that give private information to Taobao

website. Another 36.3% were not sure to give private information to this website.
Only 30% were agreed.
34
Summary
The majority of Taobao users disagreed or skeptical the trust of TaoBao. Only
about 30% another respondents feel can trust TaoBao.
4.1.6 Purchase Intention
Table 4-16 I am willing to purchase products on this website?
64.3% of the respondents agreed that willing to purchase products on TaoBao.

However, there are 18.7% were not sure.
Table 4-17 It is very likely that I buy products from this website in the
future?
85.3% of the respondents agreed that I buy products from Taobao in the future.
35
Table 4-18 I am willing to buy products from this website again?
53.0% of the respondents agreed that I buy products from Taobao in the future.
Summary
The majority of Taobao users agreed that willing to use Taobao and will
recommend to my friends. However, nearly 14% think that won't necessarily
shopping on TaoBao.
Table 4-19 Descriptive
36
Table 4-20 Test of normality
Table 4-21
The data is negatively skewed. The positive value for kurtosis indicate that is
peaked (leptokurtic). In conclusion the data is normally distributed in terms of
kurtosis but not normally distributed in terms of skewness.
37
Figure 4-1 Normal Q-Q Plot of Q27
The p value is below 0.05. In terms of the Kolmogrov-Smirnov, we can assume that the
data is not normally distributed
The data indicated that the data is normally distributed.
Sample Characteristics
A Kolomogorov-Smirnov (P<0.05), and a visual inspection of the histogram, normal Q-

Q plots and box plots showed that the dependent variable area not normally distributed
with a skewness of -0.358(SE=-0.254and kurtosis of 0.222 (SE=0.79)
38
Variabl Std. Maximu

Mean Minimum Skewness Kurtosis
e Deviation m
Q4 4.2667 0.87451 1 5 -1.574 3.296
Reputation Q5 3.5533 0.80164 1 5 -0.038 -0.257
Q6 4.3367 0.73379 1 5 -1.185 2.253
Q7 4.36 0.65204 1 5 -0.817 1.331
Size Q8 4.0733 0.82273 1 5 -1.225 2.458
Q9 4.1933 0.87474 1 5 -1.171 1.354
Q10 3.55 0.83456 1 5 -0.351 0.196
Perceived
Q11 3.6467 1.01584 1 5 -0.481 -0.433
Service Q12 4.0133 0.74499 1 5 -0.901 2.062
Quality Q13 3.1033 0.85738 1 5 -0.36 0.056
Q14 3.1667 0.81718 1 5 -0.316 0.403
Q15 4.0967 0.58463 2 5 -0.319 1.134
Perceived Q16 4.07 0.5472 2 5 -0.08 0.831
Site Quality Q17 4.01 0.74279 2 5 -0.657 0.603
Q18 3.74 0.78812 1 5 -0.618 0.577
Q19 3.1 0.69638 1 5 0.102 1.717
Q20 3.41 0.72824 1 5 -0.338 0.707
Trust Q21 3.3267 0.74057 1 5 -0.258 1.012
Q22 3.5033 0.71064 1 5 -0.35 0.411
Q23 2.86 0.97136 1 5 -0.003 -0.722
Q24 2.9233 0.95595 1 5 -0.123 -0.613
Table 4-22
39
4.2 Data Analysis

4.2.1 Reliability Analysis
The Cronbach α values for the seven dimensions ranged from 0.585 to 0.741 (refer to
Table 4-23). Similarly the reliability for the dependent measures used in assessing the
nomological validity (refer to Table 4-24) ranged from 0.830 to 0.837. The figures
indicate adequate internal consistency associated with most of the measures. Once again,
the Cronbach α values were compared with leading journals revealing that the produced
Cronbach α values were on par with leading journal findings lending further credibility to
the generated survey instrument in this study. These results are based on 300 respondents.
Table 4-23 Cronbach’s Alpha for the Independent Variables (Main Study)
Independent ISQ variables Current

Research
1 Reputation 0.585
2 Size 0.741
3 Perceived service quality 0.739
4 Perceived site quality 0.741
Table 4-24 Cronbach’s Alpha for the Dependent Variables (Main Study)
Dependent Variable Current
Research
1 Trust 0.837
2 customer purchase intention 0.830
N = 300
The Cronbach α values for the reputation dimension value is 0.585 (refer to Table 4-25).
40
Table 4-25 Cronbach’s Alpha for the Reputation Dimension
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items

.583 .585 3
The Cronbach α values for the size dimension value is 0.741 (refer to Table 4-26).
Table 4-26 Cronbach’s Alpha for the Size Dimension

.730 .741 3
The Cronbach α values for the perceived service quality dimension value is 0.739 (refer
to Table 4-27).
Table 4-27 Cronbach’s Alpha for the Perceived service quality Dimension

.737 .739 5
The Cronbach α values for the perceived site quality dimension value is 0.741 (refer to
Table 4-28).
Table 4-28 Cronbach’s Alpha for the Perceived site quality Dimension
41

.727 .741 4
The Cronbach α values for the trust dimension value is 0.837 (refer to Table 4-29).
Table 4-29 Cronbach’s Alpha for the Trust Dimension

.827 .837 6
The Cronbach α values for the customer purchase intention dimension value is 0.830
(refer to Table 4-30).
Table 4-30 Cronbach’s Alpha for the customer purchase intention Dimension

.822 .830 3
4.2.2 Correlation Analysis
Correlation Analysis Results between the Independent Variables and the Dependent
Variables
42
Correlation analysis was conducted to measure the strength of the linear relationship
between the independent variables and the dependent variables.
 Correlation Analysis Results of the Reputation Dimension
The analysis of the bivariate correlation between reputation dimension and the customer
purchase intention variables reveal all positive figures. The results (refer to Table 4-31
below) reveal that efficiency is positively correlated to customer purchase intention (r =
0.384 These correlation coefficients suggest a weak and positive linear relationship which
is highly significant at p < 0.0001.
Table 4-31: Pearson’s Correlation Analysis (Reputation VS Trust)

Correlations
Avr_rep Avr_trust
Avr_rep Pearson
1 .384**
Correlation
Sig. (2-tailed) .000
N 300 300
Avr_trust Pearson
.384** 1
Correlation
N 300 300
**. Correlation is significant at the 0.01 level (2-tailed).
 Correlation Analysis Results of the Size Dimension
The analysis of the bivariate correlation between the size dimension and the customer
0.173). This correlation coefficient suggests a weak and positive linear relationship which
43
Table 4-32: Pearson’s Correlation Analysis (Size VS Trust)

Correlations
Avr_size Avr_trust
Avr_size Pearson
1 .173**
Correlation
N 300 300
Avr_trust Pearson
.173** 1
Correlation
N 300 300
 Correlation Analysis Results of the Perceived service quality Dimension
The analysis of the bivariate correlation between the perceived service quality dimension
and the customer purchase intention variables reveal all positive figures. The results
(refer to Table 4-33 below) reveal that efficiency is positively correlated to customer
purchase intention (r = 0.592). This correlation coefficient suggests a moderate and
positive linear relationship which is highly significant at p < 0.0001.
Table 4-33: Pearson’s Correlation Analysis (Perceived service quality VS Trust

Correlations
Avr_ser Avr_trust
Avr_ser Pearson
1 .592**
Correlation
N 300 300
Avr_trust Pearson
.592** 1
Correlation
N 300 300
44
 Correlation analysis Results of the Perceived site quality Dimension
The analysis of the bivariate correlation between perceived site quality dimension
dimension and the customer purchase intention variables reveal all positive figures. The
results (refer to Table 4-34 below) reveal that efficiency is positively correlated to
customer purchase intention (r = 0.492). This correlation coefficient suggests a weak and
positive linear relationship which is highly significant at p < 0.0001.
45
Table 4-34: Pearson’s Correlation Analysis (Perceived site quality VS Trust)

Correlations
Avr_site Avr_trust
Avr_site Pearson
1 .492**
Correlation
N 300 300
Avr_trust Pearson
.492** 1
Correlation
N 300 300
 Correlation analysis Results of the Trust Dimension
The analysis of the bivariate correlation between trust dimension and the customer
0.467). This correlation coefficient suggests a weak and positive linear relationship which
Table 4-35: Pearson’s Correlation Analysis (Trust VS customer purchase intention)
Correlations
Avr_trust Avr_int
Avr_trust Pearson
1 .467**
Correlation
N 300
300
Avr_int Pearson
.467** 1
Correlation
N 300 300
46
4.2.3 Linear Regression Analysis
This section attempts to study the relationship between the overall dimension and the
customer purchase intention dependent variables.
 The Relationship between Reputation and Trust
The regression model shows that the R-square is 0.144 with an F value of 51.448 and a
significance level of p < 0.0001. It can be summarized that 14.4 percent of the variance in
the customer purchase intention has been significantly explained by the fulfilment
dimension. There is less than 0.0001 percent chance of this not holding true. In summary,
the regression analysis concludes that the tangibles measure predicts customer purchase
intention.
Trust =  + β1 (Reputation) ----------- (1)
Trust = 1.639 + 0.382 (Reputation) ------- (1)
(7.513)*** (7.173)**
R2 = 0.384
R2 = 0.147(adjusted)
F ratio = 51.448 ***

Where,  = Intercept
β1 = Parameter for the independent variable
Number in the bracket is the t – values:
47
*** Significant at the 0.0001 level.

** Significant at the 0.001 level.
 Table 4-36 Linear Regression Results the Relationship between Reputation and
Trust
Model Summaryb
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .384 a
.147 .144 .54775
a. Predictors: (Constant), Avr_rep
b. Dependent Variable: Avr_trust
ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 15.436 1 15.436 51.448 .000b
Residual 89.409 298 .300
Total 104.845 299
a. Dependent Variable: Avr_trust
b. Predictors: (Constant), Avr_rep
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.639 .218 7.513 .000
Avr_rep .382 .053 .384 7.173 .000
 The Relationship between Size and Trust
48
the regression analysis concludes that the reliability measure predicts customer purchase
intention.
Trust =  + β1 (Size) ------------ (1)
Trust = 2.511 + 0.161 (Size) ------ (1)

(11.101)*** (3.025)**
R2 = 0.173
F ratio = 9.151 ***
Table 4-37 Linear Regression Results the Relationship between Size and Trust
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate

a
1 .173 .030 .027 .58425
a. Predictors: (Constant), Avr_size
49
50
ANOVAa
Sum of Df
Model Squares Mean Square F Sig.
1 Regression 3.124 1 3.124 9.151 .003b
Residual 101.722 298 .341
Total 104.845 299
b. Predictors: (Constant), Avr_size
Coefficientsa
1 (Constant) 2.511 .226 11.101 .000
Avr_size .161 .053 .173 3.025 .003
 The Relationship between Perceived service quality and Trust
the customer purchase intention has been significantly explained by the fulfillment
the regression analysis concludes that the responsiveness measure predicts customer
purchase intention.
51
Trust =  + β1 (Perceived service quality) ---------- (1)
Trust = 1.144 + 0.584 (Perceived service quality) ------ (1)
(6.994)*** (12.670)**
R2 = 0.592
R2 = 0.350 (adjusted)
F ratio = 160.521***
Table 4-38 Linear Regression Results the Relationship between Perceived service
quality and Trust
Model Summaryb

1 .592 a
.350 .348 .47818
a. Predictors: (Constant), Avr_ser
ANOVAa
52
Sum of
Model Squares Df Mean Square F Sig.
1 Regression 36.705 1 36.705 160.521 .000b
Residual 68.141 298 .229
Total 104.845 299
b. Predictors: (Constant), Avr_ser
Coefficientsa
1 (Constant) 1.144 .164 6.994 .000
Avr_ser .584 .046 .592 12.670 .000
 The Relationship between Perceived site quality and Trust
the regression analysis concludes that the assurance measure predicts customer purchase
intention.
53
Trust =  + β1 (Perceived site quality) ----------- (1)
Trust = 0.868 + 0.583 (Perceived site quality) ------- (1)
(3.617)*** (9.744)**
R2 = 0.492
F ratio = 94.955 ***
Table 4-39 Linear Regression Results the Relationship between Perceived site
quality and Trust
Model Summaryb

a
1 .492 .242 .239 .51654
a. Predictors: (Constant), Avr_site
ANOVAa
54
Sum of
1 Regression 25.335 1 25.335 94.955 .000b
Residual 79.510 298 .267
Total 104.845 299
b. Predictors: (Constant), Avr_site
Coefficientsa
Model B Std. Error Beta T Sig.
1 (Constant) .868 .240 3.617 .000
Avr_site .583 .060 .492 9.744 .000
 The Relationship between Trust and Customer purchase intention
the regression analysis concludes that the empathy measure predicts customer purchase
intention.
55
Customer purchase intention =  + β1 (Trust) ----------- (1)
Customer purchase intention = 2.508 + 0.452 (Trust) ------- (1)
(15.628)*** (9.129)**
R2 = 0.467
F ratio = 83.342 ***
Where,  =Intercept
** Significant at the 0.001level.
Table 4-40 Linear Regression Results the Relationship between Trust and Customer
purchase intention
Model Summaryb
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .467 a
.219 .216 .50683
a. Predictors: (Constant), Avr_trust
b. Dependent Variable: Avr_int
ANOVAa
56
Sum of
1 Regression 21.409 1 21.409 83.342 .000b
Residual 76.551 298 .257
Total 97.960 299
a. Dependent Variable: Avr_int
b. Predictors: (Constant), Avr_trust
Coefficientsa
1 (Constant) 2.508 .160 15.628 .000
Avr_trust .452 .049 .467 9.129 .000
a. Dependent Variable: Avr_int
4.3 Demographic characteristics of the Respondents
In this study, the sample includes 300 customers. The respondents of the questionnaire
are Chinese customers of the TaoBao online shopping with characteristics of the
respondents as follows:
57
Table 4-41 Character Respondents Based on Gender

Gender
Valid Cumulative
Frequency Percent Percent Percent
Valid Female 199 66.3 66.3 66.3
Male 101 33.7 33.7 100.0
Total 300 100.0 100.0
Figure 4-2 Character Respondents Based on Gender
Table 4-41 above shows the sex distribution of the respondents the researcher’s
questionnaires which indicate that male respondents were 101 (33.7%), while female
respondent were 199 (66.3%). This implies that there are more female respondents than
male respondents.
58
Table 4-42 Character Respondents Based on Age

Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 18 or below 6 2.0 2.0 2.0
19-25 149 49.7 49.7 51.7
26-35 72 24.0 24.0 75.7
36-45 39 13.0 13.0 88.7
46 or above 34 11.3 11.3 100.0
Total 300 100.0 100.0
Figure 4-3 Character Respondents Based on Age
Furthermore, customer characteristics of age can be seen table 4-42 above. That shows
the characteristics of respondent age 18 years or below as many as 6 (2.0%) people. Age
of respondents 19 to 25years as many as 149 (49.7%) people. Age of respondents 26 to
35 years as many as 72 (24.0%) people. Age of respondents 36 to 45 years as many as 39
(13.0%) people. There has 34 (11.3%) person whose age is 46 years or above. So it can
be concluded that the characteristics of respondents by age dominated by respondents
aged 19 to 25 years.
Table 4-43 Character Respondents Based on Education Level
Education
59
Cumulative
Valid Diploma 9 3.0 3.0 3.3
University or above 290 96.7 96.7 100.0
Primary School 1 .3 .3 .3
Total 300 100.0 100.0
Figure 4-4 Character Respondents Based on Education Level
With regard to education level, table 4-43 shows the character respondents based on it.
Respondents with diploma are 9 (3.0%) customers. University or above holders are the
largest group of respondents comprising 290 (96.7%) of the respondents.. And 1 (0.3%)
customers have Primary School education level.
Table 4-44 Character Respondents Based on Times to online shopping in past six
months
Time
60
Cumulative
Valid None 5 1.7 1.7 1.7
1-3 times 60 20.0 20.0 21.7
4-6 times 51 17.0 17.0 38.7
7-9 times 30 10.0 10.0 48.7
10 times or more 154 51.3 51.3 100.0
Total 300 100.0 100.0
Figure 4-5 Character Respondents Based on Times to online shopping in past six
months
Table 4-44 shows the marital status of respondents. There are 5(1.7%) respondents not
online shopping in past six months, 60(20.0%) repondents online shopping in past six
month 1 to 3 times, 51(17.0%) respondents online shopping in past six month 4 to 6
times, 30(10.0%) respondents online shopping in past six month 7 to 9 times, and
154(51.3%) respondents online shopping in past six month 10 times or more.
Table 4-45 Character Respondents Based on Occupation

Occupation
61
Cumulative
Valid Student 74 24.7 24.7 24.7
Clerical worker 67 22.3 22.3 47.0
Managerial level 35 11.7 11.7 58.7
Professional 23 7.7 7.7 66.3
Freelance 24 8.0 8.0 74.3
Other 77 25.7 25.7 100.0
Total 300 100.0 100.0
Figure 4-6 Character Respondents Based on Occupation
Table 4-45 above shows the occupation of respondents. In the research, 74 (24.7%) of
students worked as the respondents. There are 67 (22.3%) customers who are clerical
worker. About 35 (11.7%) of respondents work in managerial level. And also have 23
(7.7%) respondents who are professional, 24(8.0%) respondents is freelance . and there
has 77(25.7%) respondent do the others occupation. This table implied that the largest
group are students in this research.
Table 4-46 Character Respondents Based on Monthly Income
62
Income
Cumulative
Valid Below RMB2000 79 26.3 26.3 26.3
RMB2000-2999 47 15.7 15.7 42.0
RMB3000-3999 70 23.3 23.3 65.3
RMB4000-4999 39 13.0 13.0 78.3
RMB5000-5999 22 7.3 7.3 85.7
RMB6000 or above 43 14.3 14.3 100.0
Total 300 100.0 100.0
Figure 4-7 Character Respondents Based on Monthly Income
As is seen from the table 4-46 above, it is clear that with the monthly income of
respondents. The number of monthly income below RMB2000 is 79(26.3%)
respondents. The number of monthly income from RMB2000 to RMB2999 is 47 (15.7%)
respondents. The number of monthly income from RMB 3000 to 3999 and RMB 4000 to
4999 are 70 (23.3%) and 39 (13.0%) respondents. The number of monthly income from
RMB5000 to RMB5999 is 22 (7.3%) respondents. The number of monthly income from
63
RMB6000 or above is 43 (14.3%) respondents.From the table we can find that the
respondents who has a monthly income of below RMB2000 is the largest group.
64
Table 4-47 Character Respondents Based on brand of online shopping

Web
Valid Cumulative
Frequency Percent Percent Percent
Valid TaoBao 201 67.0 67.0 67.0
JingDong 29 9.7 9.7 76.7
Tmall 25 8.3 8.3 85.0
VipShop 31 10.3 10.3 95.3
Amazon 14 4.7 4.7 100.0
Total 300 100.0 100.0
Figure 4-8 Character Respondents Based on brand of online shopping
From the table 4-47 above, we can see the brand of online shopping respondents used.
There are 201 (67.0%) respondents use TaoBao. There are 29 (9.7%) respondents use
JingDong. There are 25 (8.3%) respondents use Tmall. There are 31(10.3%) respondents
use VipShop and 14 (4.7%) respendents use Amazon. From the table we can find that
most of repondents like use TaoBao.
Table 4-48 Character Respondents Based on State
State
65
Cumulative
Valid North 80 26.7 26.7 26.7
South 19 6.3 6.3 33.0
East 42 14.0 14.0 47.0
West 64 21.3 21.3 68.3
Middle 95 31.7 31.7 100.0
Total 300 100.0 100.0
Figure 4-9 Character Respondents Based on State
Table 4-48 above shows the state of respondents, 80 (26.7%) respondents from north of
China, 19 (6.3%) respondents from south of China, 42 (14.0%) respondents from east of
China, 64 (21.3%) respondents from west of China, and 95 (31.7%) respondents from
middle of China,
4.4 Results Analysis
Hypothesis 1 elucidates the relationship between reputation and trust. Results show
evidence that trust is positive and significantly affected by reputation . Reputation appear
66
contributing variable towards satisfaction level (r = 0.384, R2 = 0.147, F = 51.448). This

hypotheses is supported and accepted as it has confirms that there is positive correlation
between reputation and trust. Doney & Cannon (1997) found that reputation are
important factor related to Trust.
Hypothesis 2 examines the impact of size towards trust. Result infers that size has
positive and significantly impact on Trust (r = 0.173, R2 = 0.030, F = 9.151). This
hypothesis is supported and accepted, as there is a positive association between size and
trust. Jarvenpaa (2000), Tractinsky (2000) and Vitale (2000) also found that companies
with the large size that can impact customer trust.
Hypothesis 3 postulates the associations between perceived service quality and trust .
Results show that trust were found have positive and significant impact on the perceived
service quality (r = 0.592, R2 = 0.350, F = 160.521). This hypothesis is supported and
accepted, Doney & Cannon (1997) found that perceived service quality was positively
related to trust in online shopping.
Hypothesis 4 explicates the impacts of perceived site quality towards trust . Trust is
positive and significant influenced by the assurance (r = 0.492, R2 = 0.242, F = 94.955).
Thus, the hypothesis is supported and accepted. This finding implied that perceived site
quality, has the positive and significant relationship with trust . Grefen, Karahanna, &
Straub (2003) found that there is a positive and significant relationship between perceived
site quality and trust.
Hypothesis 5 expounds the associations between trust and customer purchase intention.
Customer purchase intention is positively and significantly influenced by trust. Trust is
the predictor of customer purchase intention (r = 0.467, R2 = 0.219, F = 83.342). As a
result, hypothesis 5 is thus supported and accepted. The study of Lee & Turban (2001)
also found that trust is positively related to customer purchase intention.
Data analysis reveals that the relationship between trust and customer purchase intention
of consumers in China. A study by Gefen & Straub (2004) also reported similar results
67
corroborating the influence of trust on overall customer purchase intention in online

shopping.
Figure 4-10 Summaries of Hypotheses Testing

Hypotheses Coefficient Results Supported
literatures
There is a positive and
significant Supported and Doney & Cannon
H1 0.147
relationship between accepted (1997)
reputation and trust.
There is a positive and Jarvenpaa
significant Supported and (2000),
H2 0.030
relationship between accepted Tractinsky (2000)
size and trust. and Vitale (2000)
significant
Supported and Doney & Cannon
H3 relationship between 0.350
accepted (1997)
service quality and
trust.
Grefen,
significant Supported and
H4 0.242 Karahanna, &
relationship between accepted
Straub (2003)
site quality and trust.
significant
Supported and Lee & Turban
H5 relationship between 0.219
accepted (2001)
trust and customer
purchase intention.
4.5 Sampling Table
SAMPLING TABLE
Demographics
Parameter Percentage (%) Number Country
Statistics (%)
68
Gender
Male 33.67% 101 51.9%
Female 66.33% 199 48.1%
Age
16-18 2.00% 6 3
19-25 49.57% 149 10
26-35 24.00% 72 15.5
36-45 13.00% 39 16.25
46+ 11.33% 34 37.25
Education
Primary school 0.33% 1 38.25
Diploma 3.00% 9 52.82
University or above 96.67% 290 8.93
Region
East 14.00% 42 31.99
South 6.3% 19 11.88
West 21.3% 64 21.61
North 26.70% 80 18.33
Middle 31.7% 95 16.19
Income
Below RMB2000 26.33% 79 22.64
RMB2000-2999 15.67% 47 21.77
RMB3000-3999 23.33% 70 10.89
RMB4000-4999 13.00% 39 9.43
RMB5000-5999 7.33% 22 6.65
RMB6000 or above 14.33% 43 28.62
Occupation
Student 24.67% 74 25.4
Clerical worker 22.33% 67 64.6
Managerial level 11.67% 35
Professional 7.67% 23
Freelance 8.00% 24
Other 25.67% 77
Table 4-49 Demographics
Chapter V: Conclusion
5.1 Overview of the Main Findings
69
The purpose of this study is to reexamine some factors affecting consumer trust in
Mainland China as well as to investigate the effect of risk aversion as a moderator on the
relationship between trust and purchase intention in TaoBao online shopping market.
In this study, most Chinese consumers' were satisfied with service quality delivered in
five service quality dimensions of TaoBao online shopping market which are reputation,
size, perceived service quality, perceived site quality and trust. That is to say, customers
were satisfied with the offered and overall facilities delivered by TaoBao companies.
Failure to provide quality service to customers may damage the formation of the TaoBao
image and cause a negative impact on customers purchase intention. These findings
implied that customers’ purchase intention on TaoBao companies depend on different
service strategies.
5.1.1 Reputation Affecting the Purchase Intention of Customers
This study showed that the reputation is an important dimension affecting the Chinese
customers’ e-shopping purchase intention. Respondents made it clear that they expect
online shopping store have great reputation, especially for people who are new to online
shopping novice. Good reputation while shopping on the Internet makes the customers
more rest assured and don't have to worry about being cheated. The customers will
become more satisfied if online store are famous and have reputation.
5.1.2 Size Affecting the Purchase Intention of Customers
This research revealed that safety is a significant dimension of online shopping store. The
customers particularly care about the size of the website. According to this research,
almost all of the customers are willing to choose website which has wide range of goods.
Customers think goods variety, complete function of large sites can be more convenient
and quick for shopping. It's worth noting that Taobao do well in this respect, 92% of the
respondents agree that on TaoBao website has wide range of goods.
70
5.1.3 Perceived Service Quality Affecting the Purchase Intention of Customers
Perceived service quality is another important dimension affecting the purchase intention
of customers. It is the basic part in the whole service of online store, because the site has
high payment reliability, provides guarantees and good after sale services is key point to
influence customers purchase intention. Website is only to provide customers high
quality after-sales service to win good reputation and credibility.
Majority of Taobao users agreed that TaoBao has high payment reliability. Besides,
Customers also believe TaoBao website has fast delivery speed on TaoBao website.
However almost 46% of the respondents feel that there are sceptical of TaoBao website
the Perceived Service Quality. For example, as much as 46.7% of respondents not sure
that TaoBao website would provide good after sale services. More than 16.3% of
respondents do not believe that TaoBao will provides good after sale services. There are
just 30% believe website would provide good after sale services.
5.1.4 Perceived Site Quality Affecting the Purchase Intention of Customers
This research revealed that perceived site quality is a meaningful dimension of the
perceived online website service. A lot of people pay more attention to ask the site has
very well technically, simple to navigate and easy to find the information. If site running
slow and chaos of information, the customer will be difficult to have a high quality
shopping experience, it will influence customers purchase intention of the web site.
The majority of Taoboo users agreed that TaoBao website works very well technically
and it is simple to navigate. Besides, on TaoBao website, customer is easy to get
information. Only about 10% respondents feel that there are sceptical of its Perceived
Site Quality.
5.1.5 Trust Affecting the Purchase Intention of Customers
This study showed that the trust is also an important dimension affecting
71
Customers’ purchase intention. The modern network technology is more and more
developed, when human beings to enjoy the advantages of high-tech, will also have to
bear the risk of disclosure of personal privacy and account theft. Website for customer
information and account security greatly affect the customer purchase intention in the
future. So there are not able to ignore the factor that trust of customers to website.
However, the majority of TaoBao users disagreed or skeptical the trust of TaoBao. Only
about 30% another respondents’ feel can trust TaoBao.33.7% of the respondents
disagreed that give private information to TaoBao website. Another 36.3% were not sure
to give private information to this website. Only 30% were agreed.
5.2 Discussion
5.2.1 Reputation
The reputation dimension is an important factor that affect the purchase intention of
customers.It means that the TaoBao should provide company’ reputation as much as
possible. The 86.3% of the respondents agreed that TaoBao is famous and well known.
However almost 40% of the respondents feel that there are skeptical of its corporate
reputation.
When the web vendor is a well-known and has good reputation towards consumers’ trust;
this can increase their confidence towards web vendor and they are more willing to
engage in online purchasing activities frequently. In addition, according to Harridge-
Mach (2006), if a consumer is committed to online purchasing activities without consider
a particular
website vendor to be trustworthy; it is easy to challenge allegiance to another due to the
large choice in the online environment. The result shows a positive relationship of
TaoBao company reputation toward consumers’ purchase intention. So Taobao is enough
famous, but still need to improve reputation to meet customer expectations.
5.2.2 Size
72
Website size is another important aspect been paid great attention in TaoBao firm. The
84% of the respondents agree that TaoBao website is one of the industry’s biggest
suppliers on the web. 84.6% of the respondents agree that TaoBao website is a big player
in the market. Besides, 92% of the respondents agree that on TaoBao website has wide
range of goods. The above data shows that taobao occupy the huge market of electronic
commerce. Jingdong, Amazon will not be enough to compete with TaoBao.
Taobao, with a huge variety of products and biggest market share to increase customer's
purchase intention. But with the development of China's e-commerce market, more
companies will share the market with TaoBao. TaoBao in the future this advantage will
be weakened.
5.2.3 Perceived Service Quality
Perceived service quality is the basic thing for online shopping store. It is the cornerstone
of all work. For online shopping website perceived service quality is the primary goal
which cannot be ignored. As the e-shopping site, website should keep high payment
reliability, fast delivery speed and high quality after-sales service to meet customers
demand.
For this research study, majority of respondents is ranged from the ages 19-35 years old
which are 76 percent of the total respondents, these respondents are typically experienced
online shoppers and who are concern about ease-of-use of the website in terms of the
simplicity of use, the speed and ease to search the products or services as well as simple,
ease and secure to make the payment through online system that allow online shoppers to
use credit cards and online direct debit services in the online stores’ website for secure
and efficient online payment solutions. Therefore, if the TaoBao want to attract the
customer's purchase intention, the above web function cannot be ignored.
5.2.4 Perceived Site Quality
73
Perceived site quality dimension, it is the most direct part for the TaoBao website to serve
their customers. A good looking, user-friendly and a well interface website will stimulate
the consumers’ confidence to purchase items or services online and encourage future
purchases as well as foster the trust building between consumers and online store.
In other words, nowadays, e-market website works should be very well technically,
simple to navigate and easy for customers to find the information what they want. Taobao
can make more changes in this area. For example, the design more clear and concise
page, upgrade the site infrastructure.
5.2.5 Trust
Trust also influence customers purchase intention. In other words the customer trust is the
site' foundation for long-term development.
The perceived security of a consumer may affect their willingness to engage in online
purchase activities. This implies that when online store have a high level of security
system towards the consumers’ personal information and transaction information being
disclosed to third parties; they are more willing to participate in online activities by
decreasing their uncertainties about the perceived risk in online transaction.
However the majority of TaoBao users disagreed or skeptical the trust of TaoBao. Only
about 30% another respondents’ feel can trust TaoBao. Taobao in winning the trust of
customers still have a long way to go.
5.3 Implications of the Study
Researcher results have implications for both practitioners and academicians. The
implication can be divided into two categories which are theoretical implication and
managerial implication.
5.3.1 Theoretical Implications
74
This study will help researchers to better capture the factors that affecting the consumer’s
purchase intention to switch or stay loyalty to a particular website. Since there is limited
study in this area to examine a theoretical model and test it empirically in the TaoBao
website, this research will contribute the relevant model of consumer purchase intention
to participate in internet shopping which applicable to the Taobao context and perhaps a
comprehensive mode on the factors of affecting trust will be developed. There are
basically two main theoretical implications in this research. First, is to evaluate and
validate the determinants of consumers’ purchase intention in online shopping in the
Taobao website. Second, is to identify the relationship between online consumers’
satisfaction and their online purchase intention in Taobao electronic commerce context.
Based on the extent literature, most of the researchers have found that determinant factors
of customers' purchase intention which are perceived site quality, trust, perceived service
quality, company reputation and perceived size are positively related to consumers’
online purchase intention in electronic commerce activities. This research offered
empirical evidence to further support that there is a positive relationship determinants of
online purchase intention. The research finding have found that: (1) perceived site
quality has a positive relationship with consumer online purchase intention; (2)
perceived service quality has a positive relationship with consumer online purchase
intention; (3) perceived trust has a positive relationship with consumer online purchase
intention;(4) company reputation has a positive relationship with consumer online
purchase intention; and (5) perceived size has a positive relationship with consumer
online purchase intention.
5.3.2 Managerial Implications
For practitioners, considering the rapid change and competitive electronic commerce
environment in China, understanding of online consumer needs and requirements is
essential and present an immense challenge which is how electronic-businesses (online
retailers) to compete in building a high degree of consumer purchase intention and
maintaining lasting relationships with them. Thus, online retailers must understand their
75
consumers’ behavior before they can effectively respond to their demand especially when
Chinese consumers are having various choices of web vendors. The finding of this
research has revealed that perceived ease-of-use, website design quality, company
reputation and security affect the building of online trust. Meanwhile, the findings also
found that online trust, perceived service quality, perceived site quality, company
reputation and size is a significant factor which affects online consumers’ purchase
intention. Hence, companies that conduct online business through websites should take
notes of these factors which may be a key in facilitating behavioral change in consumers.
The research study found that ease-of-use of the website is the strongest indicator to
affect consumers’ purchase intention which may give online vendors an opportunity to
create a user-friendly website features and attractive interfaces. Therefore, this research
has shown that consumers tend to favor online retailers that have an easy-to-use and
useful websites. This finding brings that online stores have embraced the high quality
design of the website as a source of competitive attraction towards online consumers. In
other words, those online stores which gave a great concern on website design quality
issues (such as technical design, website maintenance, and security system in of the
shopping website) can take some necessary steps to ensure that their websites are users-
friendly and able to impress the potential consumers. For instance, online retailers should
urge their website designers to incorporate a simple yet elegant design in the website
interface so that online consumers will not be deterred by a complicated web form that is
too technical and difficult to understand. Besides that, online retailers should also be
aware of their target market needs in order to ensure their websites are useful to attract
new consumers and retain potential consumers’ purchase intention in this rapid change
environment. Hence, Perceived Site Quality is seen as an important construct because it
will affect the consumers’ online purchase intention directly as well as influence
consumers’ purchasing behavior.
Since, perceived size is an important predictor of purchase intention of online consumers

to assess the online store based on the research’s findings. Thus, it is suggested that
online vendors should spend time, effort, resources and money in expanding their
76
websites’ size. Besides, online retailers should make an effort to decrease the perceived
risk of the online consumers by strengthen the security level of their websites from
hackers, malware and other threat in order to promote consumers’ online purchases
intention. The findings shown that perceived security is an essential item in the formation
of customers' purchase intention, because it set consumers’ mind at ease when it comes to
the concerns about the financial security and personal information from online fraud,
scam or identity theft. Therefore, consumers tend to believe a more reliable and secure
website that set clear security policies on what website’s employees can and cannot
access on its consumers’ information. Furthermore, consumers also will be more inclined
to trust an online retailer which reviews the security policy and maintenance yearly to
ensure consumers’ personal information will not be misused by other people during or
after their online transaction. For instance, online retailers should emphasis more on the
security features of their websites as well as practice good data collection and usage
methods to stimulate risk-averse customers’ confidence, purchase intention and trust
toward online shopping.
Lastly, online trust in the perception of online consumers was acknowledged as the most
significant factor that influence consumers’ purchase intention of TaoBao, Chinese.
Online trust has a strong effect towards the consumers’ purchase intention to participate
online shopping. In fact, 30% in changes of online purchase intention can be explained by
trust. Therefore, online trust plays an important role as a mediator between the
determinants factors of trust and purchase intention of consumers. This implies that the
formation of consumers trust is vital for a successful electronic business in order to gain
consumers’ loyalty and trust to the particular website. Meanwhile, online trust is also able
to change consumer behaviors from non-purchase consumer behaviors, browsing to an
actual purchasing from a website when consumers have formed a bond with the online
retailer using trust. In addition, this study has found out that respondents will be more
willing to trust an online retailer if it can keep its promises and obligation, honest and
trustworthy manner throughout the transaction process. Hence, online retailers must
strive to provide accurate and sufficient information about products or services that
offering in the website, well-priced, good service quality and reliable security system on
77
consumer’s personal information in order to enhance consumer trust, confidence and

stimulate consumer’s online purchase intention to engage in online transactions.
5.4 Limitations
This study has several limitations .Firstly, all of the respondents are from China, and the
majority (49%) of the respondents’ age between 19-25 years old. 27% participants are
25-35 years old, which means most of respondents are young people. So therefore the
sample cannot be described as a random and representative sample of online consumers
in China.
Secondly, the size and amount of the sample used for this research is another potential
limitation of this finding. The small size of sample were collected, therefore the data
collected which is unlikely to represent the wider population, since this study was only
obtained 330 online consumers (of total around 1367,820,000). In other words, this study
was limited to respondents that located in one geographic area (most are XinJang,
HuiBei, HeBei and ShangHai) only instead of whole China. As a result, the results of the
study is failed to represent the nation as a whole.
Thirdly, this study only examined the effect of five variables (company reputation,
perceived size, perceived service quality, perceived site quality and trust) that influenced
the of online purchase intention among individual consumers in the area of TaoBao.
Even though there are few limitations in this study but the acknowledgement of a study's
limitations is an opportunity to make suggestions for further research.
78
5.5 Recommendations for Future Research
Based on the limitations on our research, some recommendations have been made for
researchers who might conduct the similar or related research in the future. These
recommendations enable more appropriate and reliable data and information for future
research study. First of all, in order to establish a greater degree of accuracy data and
result, enlarge the number of sample size would help in future research. The number of
respondents can be increase to 500 respondents. Apart from that, it is recommended to
have more balance representation among all races and age ranges for future research, as
well as to gain a more comprehensive finding by equally distribute and collect the
research data around the country regions from different states.
Next, future studies should examine the effect of possible variables such as gender,
income level and age on purchase intention of online consumers in China. Thus, by
analyzing the differences between responses from respondents of different demographic
profiles which would help to provide a better describe the characteristic of the target
population more comprehensively towards on the perception of internet shopping.
Lastly, for future research, it is better to use some other research methods to get more
accurate result, such as observation and focus group. Observation involves the use of
eyes rather than ears and voices. The observational method is considered as a
standardized, planed, and systematic approach to observe and record a behavior. So it can
be summarized that, observation with the help of eyes act as the most trustworthy
medium in making an objective observation.
79
References
1. Hoffman, D., Novak, T., and Peralta, M., (1999). Building consumer
2. IResearch (2009), ‘‘online purchase sales reached RMB1, 600 per person in 2008.
C2C remains the best choice”, available at:
www.iresearch.com.cn/html/Consulting/Online_Shopping/DetailNews_id_90683.ht
ml (accessed 5 June 2013).
3. Kauffman, R.J., and Wang, B., (2002). Bid together, buy together: on the efficacy of
group-buying business model in Internet-based selling. In P.B. Lowry, J.O.
Cherrington and R.R. Watson (ediors), Handbook of Electronic Commerce in
Business and Society. Boca Raton, FL: CRC Press.
4. Kotler, P., and Keller, K., L., (2006). Marketing Management, 12ed. Upper Saddle
River, New Jersey: Pearson Education. Inc.
5. Know, K. and Lee, J. (2003) ‘Concerns about payment security of Internet
purchases: a perspective on current on-line shoppers,’ Clothing and Textiles
Research Journal, 21 (4), 174-184.
6. Kim, H.B., Kim, T.T. and Shin, S.W., (2009). Modeling roles of subjective norms
and eTrust in consumers' acceptance of airline B2C eCommerce websites. Tourism
Management Vol.30, pp266-277.
7. Lee, H-T. (2009), Online-Shopping Market in China – Adventurous Kingdom for
Foreign SME, CBC Marketing Research Shanghai Office.
8. Lorek, L. A. (2003) ‘Buyers catch on to online shopping,’ San Antonio Express-
News. [Online], [Retrieved December 22, 2003],
http://web.lexis-nexis.com/universe/document
9. Liao, Z., & Cheung, M. T. (2001). Internet-based e-shopping and consumer
attitudes: an empirical study. Information & Management, 38(5), 299-306.
10. Lian, J.W., and Lin, T.M., (2008). Effects of consumer characteristics on their
acceptance of online shopping: comparisons among different product types.
Computers in Human Behavior Vol.24, pp: 48-65.
11. Lassar, W.M., Manolis, C., and Lassar, S.S., (2005). The relationship between
consumer innovativeness, personal characteristics, and online banking adoption.
80
International Journal of Bank Marketing Vol.23 (2): 176-199.

12. Liu, X., He, M., Gao, F., & Xie, P. (2008). An empirical study of online shopping
customer satisfaction in China: a holistic perspective. International Journal of Retail
& Distribution Management, 36(11), 919-940.
13. Li, N., and Zhang, P., (2002). Consumer online shopping attitudes and behavior:
anassessment of research. Eighth Americas Conference on Information
Systems,pp.508-517.
14. Laroche, M., Kim, C. and Zhou, L. (1996) 'Brand familiarity and confidence as
determinants of purchase intention: an empirical test in a multiple brand context',
Journal of Business Research, 37(2), 115-120.
15. Magee, M. (2003) ‘Boom or bust for e-shopping,’ The Sunday Tribune. [Online],
[Retrieved December 22, 2003] http://web.lexis-nexis.com/universe/document
16. McCracken, G. (1988), The Long Interview, Sage, Newbury Park, CA.
17. McKnight, D. H., Choudhury, V., & Kacmar, C. (2002). The impact of initial
consumer trust on intentions to transact with a web site: a trust building model.
Journal of Strategic Information Systems, 11(3-4), 297-323.
18. Miyazaki, A. D., & Fernandez, A. (2001). Consumer perceptions of privacy and
security risks for online shopping. The Journal of Consumer Affairs, 35(1), 27.
19. Maloy, T. K. (2003) ‘Net is here to stay for retailers,’ [Online], [Retrieved
December 22, 2003], http://web.lexis-nexis.com/universe/document
20. National Bureau of Statistics of China, (2012). From the 16 National Congress to 18
National Congress Report of Economic and Social development
achievements<http://www.stats.gov.cn/was40/gjtjj_detail.jsp?searchword=%CD
%F8%C9%CF%B9%BA%CE%EF&presearchword=%C8%AB%B9%FA%CD
%F8%C9%CF%B9%BA%CE%EF%C7%E9%BF%F6&channelid=6697&record=1
> (accessed to Dec.6, 2012).
21. Pi, S., Liao, H.L., Liu, S.H., Lee, I.S., (2011). Factors influencing the behavior of
online group buying in Taiwan. Journal of Business Management Vol.5 (16): 7120-
7129.
22. Park, D.H., and Kim, S., (2008). The effects of consumer knowledge on message
processing of electronic word-of-mouth via online consumer reviews. Eletronic
81
Commerce Research and Applications Vol.7, pp 399-410.

23. Park, D.H., and Lee, J., (2008). eWOM overload and its effect on consumer
behavioral intention depending on consumer involvement. Electronic Commerce
Research and Applications 7: 386-398.
24. Pavlou, P.A., and Gefen, D., (2004). Building effective online market places with
institution-based trust. Information Systems Research Vol.15 (1): 37-59.
25. Park, Chung-Hoon & Kim, Young-Gul. (2003). Identifying key factors affecting
consumer purchase behavior in an online shopping context. International Journal of
Retail & Distribution Management. Vol 31, NO.1. P16-29.
26. Punj GN. and Steelin R. (1983) A model of consumer information search f or new
automobiles. J Consum Res; 9: 366-80.
27. Patton, M.Q. (1990), Qualitative Evaluation and Research Methods, Sage, Newbury
Park, CA.
28. Prasad, C., & Aryasri, A. (2009). Determinants of Shopper Behaviour in E-tailing:
An Empirical Analysis. Paradigm, 13(1), 73.
29. Rahman, A., Siang, T., Zahir, O., San, L., Jawaid, A., Subramaniam, P., and Haque,
R. (2018). Modelling Consumer Perceptions of Internet Retail Service Quality
through Structured Equation Analysis. Herald NAMSCA 1.
30. Retail Merchandiser (2003) ‘Online spending jumps 18 per cent,’ Retail
Merchandiser. [Online], [Retrieved December 22, 2003],
http://web.lexis-nexis.com/universe/document
31. Reibstein, D. J. (2002). What attracts customers to online stores, and what keeps
them coming back? Journal of the Academy of Marketing Science, 30(4), 465-473.
32. Roy, M.C., Dewit, O., & Aubert, B.A. (2001). The impact of internet usability on
trust in Web retailers. Internet Research Electronic Networking Applications and
Policy. Vol. 11 No, 5, pp 388-398.
33. Stafford, T.F., Turan, A. and Raisinghani, M.S. (2004), “International and cross-
cultural influences on online shopping behavior’’, Journal of Global Information
Technology Management, Vol. 7 No. 2, pp. 70-87.
34. Su, H. (2009). iResearch: 09Q3 Online shopping Market Size Reaching 65.85 Billion
Yuan. Retrieved 20, April, 2010, from
82
http://english.iresearch.com.cn/views/E_Commerce/DetailNews.asp?id=9071
35. Smith, R.E., (1993). Integrating information from advertising and trial: Process
andeffects on consumer response to product information. Journal of Marketing
Research Vol.30 (2): 204-219.
36. Shergill, G. S., & Chen, Z. (2005). WEB-BASED SHOPPING: CONSUMERS'
ATTITUDES TOWARDS ONLINE SHOPPING IN NEW ZEALAND. Journal of
Electronic Commerce Research, 6(2), 78.
37. Spence, H. E., Engel, J. F., & Blackwell, R. D. (1970). Perceived risk in mail-order
and retail store buying. JMR, Journal of Marketing Research (pre-1986), 7(000003),
364.
38. Sin, L., & Tse, A. (2002). Profiling Internet shoppers in Hong Kong: demographic,
psychographic, attitudinal and experiential factors. Journal of International
Consumer Marketing, 15(1), 7.
39. Szymanski, D. M., & Hise, R. T. (2000). E-satisfaction: an initial examination.
Journal of Retailing, 76(3), 309-322.
40. Shanghai Business Review (2010), "Click to add to cart", Shanghai Business Review,
March.
41. Shiau, W.L., and Luo, M.M., (2012). Factors affecting online group buying
intention and satisfaction: A social exchange theory perspective. Computers in
Human Behavior Vol.28: 2431-2444.
42. Salisbury, W.D., Pearson, R.A., Pearson, A.W. and Miller,D.W. (2001) ‘Perceived
security and world wide web purchase intention. Industrial Management & Data
Systems, 101(4), 165-177.
43. Swaminathan, V., Lepkowska-White, E., & Rao, B. P. (1999). Browsers or buyers in
cyberspace? An investigation of factors influencing electronic exchange. Journal of
Computer-Mediated Communication, 5(2), 1-19.
44. Thomas Crampton. (2010). China: More time on Internet than the USA. Retrieved
May 16, 2010, from
http://www.thomascrampton.com/china/china-internet-usage-stats/
45. Tsai, M.T., Cheng, N.C., and Chen, K.S., (2011). Understanding online group
buying intention: the roles of sense of virtual community and technology acceptance
83
factors .Total Quality Management Vol.22 (10): 1091-1104.

46. Thompson, C.J., Locander, W.B. and Pollio, H.R. (1989) "Putting consume r
experience back into consumer research: the philosophy and method of existential-
phenomenology", Journal of Consumer Research, Vol. 16, September, pp. 133-47.
47. Tong, X., (2010). A cross-national investigation of an extended technology
acceptance model in the online shopping context. International Journal of Retail &
Distributing Management Vol.38 (10): 742-759.
48. Verhoef, P. C., & Langerak, F. (2001). Possible determinants of consumers'
adoption of electronic grocery shopping in the Netherlands. Journal of Retailing and
Consumer Services, 8(5), 275-285.
49. Van Herpen, E., & Pieters, R. (2002). The variety of an assortment: An extension to
the attribute-based approach. Marketing Science, 21(3), 331-341.
50. Wolhandler HC. (1999) Real numbers behind Net Profits. Active Media Res (6th
annual survey of online commerce). Available at:
Http: //www.activmediaresearch.com/real _numbers_1999. Html
51. Wang, Y.S., Wu, S.C., Lin, H.H., and Wang, Y.Y., (2011). The relationship of
service failure severity, service recovery justice and perceived switching cots with
consumer lotality in the context of e-tailing. International Journal of Information
Management Vol.31 (4): 350-359.
52. Wang, Y.S., Wang, Y.M., Lin, H.H., and Tang, T.I., (2003). Determinants of user
acceptance of Internet banking: an empirical study. International Journal of Service
Industry Management Vol.14 (5): 500-519.
53. Weng, V. and Lee, C.H. (2009), ‘‘Current status and future development potential of
China’s online shopping market, available at:
54. http://mic.iii.org.tw/english/Store/en_3_mic_store_1_2_1.asp?doc_ sqno ¼ 7133
(accessed 29 March 2010).
55. Zhao, A.L., Hanmer-Lloyd, S., Ward, P. and Goode, M.M.H. (2008), ‘‘Perceived
risk and Chinese consumers’ internet banking services adoption’’, International
Journal of Bank Marketing, Vol. 26 No. 7, pp. 505-525.
56. Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-
end model and synthesis of evidence. The Journal of Marketing, 52(3), 2-22.
84
57. Zumd, R.W., (1979). Individual differences and MIS success: a review of the
empirical literature. Management Science, Vol.25 (10): 966-979.
58. Anderson, E. W. & Fornell, C. (1994). A Customer Satisfaction Research
Prospectus. In Rust, R. T. and Oliver, R. L. (Eds.), Service Quality: New Directions
in Theory and Practice. Sage Publication, Thousand Oaks, CA, pp. 241268.
59. Bhattacharya, R.; Devinney, T.M. & Pillutla, M.M. (1998). A Formal Model of
Trust Based on Outcome. Academy of Management. The Academy of Management
Review. Vol.23, No.3, pp.459-472.
60. Boon, S. D. & Holmes, J. G. (1991). The dynamics of interpersonal trust: Resolving
uncertainty in the face of risk. In R.A. Hinde & J. Groebel (Eds.), Cooperation and
prosocial behavior (pp. 190-211). New York: Cambridge University Press.
61. Boulding, W., Kalra, A., Staelin, R. & Zeithaml, V. (1993). A dynamic process
model of service quality. Journal of Marketing. Vol.30, pp. 7-27.
62. Daignault, M. A. (2001). Enabling Trust Online: Facilitating First, Second and
Third Party Rating. Dalhousie University, Canada.
63. Doney, P. M. & Cannon, J. P. (1997). An examination of the nature of trust in buyer-
seller relationships. Journal of Marketing. Vol. 61, pp. 35-51.
64. Gefen, D. (2000). E-Commerce: The Role of Familiarity and Trust. Omega. Vol.28,
No.6, pp. 725-737.
65. Gefen, D. (2002). Customer Loyalty in Å-commerce. Journal of the Association for
Information Systems. Vol.3, pp. 27-51.
66. Gefen, D., Karahanna, E. & Straub, D. W. (2003). Trust and TAM in Online
Shopping: An Integrated Model. MIS Quarterly. Vol.27, No.1, pp. 51-90.
67. Grazioli, S. & Jarvenpaa, S. (2000). Perils of Internet Fraud: An Empirical
Investigation of Deception and Trust with Experienced Internet Consumers. IEEE
Transactions on Systems, Man, and Cybernetics. Vol.30, pp. 395-410.
68. Grewal, D., Munger, J., Iyer, G. & Levy, M. (2003). The Influence of Internet
Retailing Factors on Price Expectations. Psychology & Marketing. Vol.20, pp. 477-
493.
69. Hosmer, L. T. (1995). Trust: the Connecting Link between Organizational Theory
and Philosophical Ethics. Academy of Management Review. Vol.20, No.2, pp. 379-
85
403.
70. Jarvenpaa, S. L. & Tractinsky, N. (1999). Consumer Trust in an Internet Store: A
Cross-cultural Validation. Journal of Computer Mediated Communication. Vol.5,
No.2, pp.1-35.
71. Jarvenpaa, S. L., Tractinsky, N. & Vitale, M. (2000). Consumer trust in and Internet
Store. Information Technology and Management. Vol.1, No.1-2, pp. 45.
72. Kim, E. & Tadisina, S. (2007). The Journal of Computer Information Systems. Vol.
48, No. 1, pp.88-105.
73. Kirn, H., Xu, Y. & Koh, J. (2004). A Comparison of Online Trust Building Factors
between Potential Customers and Repeat Customers. Journal of Association for
Information Systems. Vol.5, No.10, pp.392-420.
74. Koufaris, M. & Hampton-Sosa, W. (2004). The Development of Initial Trust in an
Online Company by New Customers. Information and Management. Vol.41, No.3,
pp.377-397.
75. Lee, M.K.O. & Turban, E. (2001). A Trust Model for Consumer Internet Shopping.
International Journal of Electronic Commerce. Vol.6, No.1, pp. 75-92.
th
76. Malhotra, N. K. (2004). Marketing research: An Applied Orientation (4 ed.). Upper
Saddle River, NJ: Pearson Prentice Hall.
77. Mayer, R. C., Davis, J. H. & Schoorman, F. D. (1995). An Integralive Model of
Organizational Trust. Academy of Management Review. Vol.20, No.3, pp.709-734.
78. Mayer, R. C. & Norman, P. M. (2004). Exploring Attributes of Trustworthiness: A
Classroom Exercise. Journal of Management Education. Vol.28, No.2, pp.224-249.
79. McKnight D. H., Cummings, L. L. & Chervany, N. L. (1998). Initial Trust Formation
in New Organizational Relationships. Academy of Management Review. Vol.23,
No.3, pp. 473-490.
80. Moorman, C., Zaltman, G. & Deshpande, R. (1992). Relationships between
Providers and Users of Market Research: the Dynamics of Trust Within and Between
Organizations. Journal of Marketing Research. Vo.29, pp. 314-328.
rd
81. Nunally, J.C., Bernstein, I.H. (1994). Psychometric Theory (3 ed.). New York:
McGraw-Hill.
86
82. Pavlou, P.A. (2003). Consumer Acceptance of Electronic Commerce: Integrating

Trust and Risk with the Technology Acceptance Model. International Journal of
Electronic Commerce. Vol.7, No.3, pp. 101-134.
83. Pavlou, P. A. & Gefen, D. (2004). Building Effective Online Marketplaces with
Institution-based Trust. Information Systems Research. Vol.15, No.1, pp. 37-59.
84. Pennington, R., Wilcox, H. D. & Grover, V. (2003-2004). The Role of System Trust
in Business-to-Consumer Transactions. Journal of Management Information
Systems. Vol.20, No.3, pp. 197-226.
85. Predergast, G.P., Ho, M.L. & Phau, I. (2002). A Hong Kong View of Offensive
Advertising. Journal of Marketing Communications. 8(3), pp. 165-177.
86. Ranaweera, C. Bansal, H. & McDougall G. (2008). Web site satisfaction and
purchase intentions: Impact of personality characteristics during initial web site visit.
Managing Service Quality. Vol.18, No. 4, pp. 329-348.
87. Ribbink, D., Riel, A. C. R. V, Liljander, V. & Streukens. S. (2004). Comfort your
online customer: quality, trust and loyalty on the Internet. Managing Service Quality.
Vol.14, No.6, pp. 446.
88. Schlosser, A. E., White, T. B. & Lloyd, S. M. (2006). Converting Web Site Visitors
into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and
Online Purchase Intentions. Journal of Marketing. Vol.70, pp. 133-148.
89. Shimp, T. A. & Bearden, W. O. (1982). Warranty and other extrinsic cue effects on
consumers’ risk perceptions. Journal of consumer research. Vol.9, pp.38-46.
90. Sonja, G. (2002). The Role of Consumers’ Trust in Online-Shopping. Journal of
Business Ethics. Vol.39, No.1/2, pp. 43-51.
91. Steenkamp, J. E. M., Hofstede, F. & Wedel, M. (1999). A cross-national
investigation into the individual and national cultural antecedents of consumer
innovativeness. Journal of Marketing. Vol.63, pp.55-69.
92. Tabachnick, B. G. & Fidell, L. S. (2001). Using Multivariate Statistics, 4th ed. Allyn
Bacon, Pearson Education Company.
93. Teltzrow, M., Gunther, O. & Pohle, C. (2003). Analyzing Consumer Behavior at
Retailers with Hybrid Distribution Channels – A Trust Perspective. ACM
International Conference Proceeding Series, Proceedings of the 5th international
87
conference on Electronic comer.

94. Tse, D. K. (1996). Understanding Chinese people as consumers: Past findings and
future propositions. In M. H. Bond (Eds.), The handbook of Chinese psychology.
Hong Kong: Oxford University Press.
95. Wakefield, R. L., Stocks, M. H. & Wilder, W. M. (2004). The Role of Web Site
Characteristics in Initial Trust Formation. Journal of Computer Information Systems.
Vol.45, No.1, pp. 94-103.
96. Yousafzai, S.Y., Pallister, J.G. & Foxall, G.R. (2005). Strategies for Building and
Communicating Trust in Electronic Banking: A Field Experiment. Psychology &
Marketing. Vol.22, No. 2, pp. 181-201.
88

Factor Influencing Trust in Internet Sho

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Factor Influencing Trust in Internet Sho

Uploaded by

Copyright:

Available Formats

International Journal of Advanced Business and Management Vol 1, Issue 1

Factor Influencing Trust in Internet

1.1.1 Background Information.....................................................................................2

1.1.2 The E-commerce industry in China....................................................................4

1.2 Statement of the problem...........................................................................................5

1.1.3 Objectives of study.............................................................................................5

1.3 Research questions and Hypotheses..........................................................................6

1.3.1 Statement of hypotheses.....................................................................................7

1.4 Importance of the study.............................................................................................9

1.5 Purpose of the study...................................................................................................9

1.6 Chapter Scheme.......................................................................................................10

Chapter 2 : Literature Review............................................................................................11

2.1 Chronological Literature Review............................................................................11

2.1.1 Content Analysis...............................................................................................12

2.1.2 Research Method Literature Review................................................................13

Chapter 3 Research Methodology.....................................................................................14

3.2 Research Approach..................................................................................................14

3.2.1 Study Design.....................................................................................................15

3.3 Research Setting......................................................................................................18

3.4 The Study Population And Sample..........................................................................19

3.4.1 The Sampling Criteria.......................................................................................19

3.5 Data Collection........................................................................................................20

3.5.1 Data Collection Instrument...............................................................................20

3.6 Reliability And Validity..........................................................................................22

3.7 Pretesting The Questionnaire...................................................................................23

3.8 Ethical Considerations.............................................................................................24

Chapter 4 Data Analysis, Results and Findings.................................................................25

4.1 Descriptive Statistics...............................................................................................25

4.1.3 Perceived Service Quality.................................................................................29

4.1.4 Perceived Site Quality......................................................................................30

4.1.6 Purchase Intention............................................................................................33

4.2 Data Analysis...........................................................................................................38

4.2.1 Reliability Analysis..........................................................................................38

4.2.2 Correlation Analysis.........................................................................................42

4.2.3 Linear Regression Analysis..............................................................................48

4.3 Demographic characteristics of the Respondents....................................................59

4.4 Results Analysis.......................................................................................................69

4.5 Sampling Table........................................................................................................71

5.1 Overview of the Main Findings...............................................................................72

5.1.1 Reputation Affecting the Purchase Intention of Customers.............................73

5.1.2 Size Affecting the Purchase Intention of Customers........................................73

5.1.3 Perceived Service Quality Affecting the Purchase Intention of Customers.....73

5.1.4 Perceived Site Quality Affecting the Purchase Intention of Customers...........74

5.1.5 Trust Affecting the Purchase Intention of Customers......................................74

5.2.3 Perceived Service Quality.................................................................................76

5.2.4 Perceived Site Quality......................................................................................76

5.3 Implications of the Study.........................................................................................77

5.3.1 Theoretical Implications...................................................................................77

5.3.2 Managerial Implications...................................................................................78

5.5 Recommendations for Future Research...................................................................81

1.1.2 The E-commerce industry in China

Recently, study on e-retail service quality has emerged in marketing journals

1.2 Statement of the problem

1.2.1 Objectives of study

1. To provide an overall idea of the online shopping industry in China.

4. To identify underlying dimensions, or factors, that explains the correlations among

5. To make recommendation on online shopping, make China online shopping industry is

1.3 Research questions and Hypotheses

Figure 1 Conceptual Framework

1.3.1 Statement of hypotheses

Similar to reputation, customers’ perceived size of a company plays an important role in

Perceived Service Quality

Perceived Site Quality