Multidimensional trust building in e-retailing: Cross-cultural differences in trust formation and implications for perceived risk

Abstract

The importance of trust in consumers' purchase decisions in e-retailing is of significant interest to retailers. As retailing becomes increasingly globalized, retailers are more interested in cultural differences related to purchase decisions. This empirical study researches how cultural factors are related to multiple dimensions of trust and trust building. Although previous research has examined the influence of trust as a one-dimensional construct, this research examines three dimensions of the trust construct-competence, benevolence and integrity. This research proposes that cultural values will have an impact on how consumers with Eastern vs. Western cultural backgrounds form their trust of e-retailers and how that trust influences their interactions with e-retailers. It focuses on differences between USA (n=252) and Korean (n=256) online customers. It examines how two significant trust forming antecedents, reputation and website quality, affect the three dimensions of trust in the two different cultures, and how the trust dimensions impact two significant consequences, willingness to depend on the e-retailer and related perceptions of risk when dealing with e-retailers.