• The Effects of Distrust on Online Shopping Intention－A Comparative Study between Cross-Strait Consumers

Abstract

Purpose – This research explores the effects of distrust on consumers’ online shopping intention with a dualistic attitude, and conduct a comparative study on cross-strait consumers.

Design/methodology/approach – This research deploys a controlled experiment to analyze the on-line questionnaires retrieved from consumers on both sides of Taiwan Strait. A total of 265 valid questionnaires were recovered, 115 from Taiwan and 150 from China. We firstly conducted 4 pilot tests, primarily on the selection of the subject products, brand names, attributes of the product, and valence reviews.

Later in the large-scale survey, participants were randomly assigned to one of the four experimental scenarios. They read through products reviews under different scenarios and then answered the questionnaire. The hypotheses were tested using ANCOVA and PLS-SEM.

Findings – The results show that the positive/negative attitude towards product significantly affects the distrusting beliefs; distrusting beliefs in turn significantly affect the purchase intention. In addition, the distrust of Taiwanese consumers is higher than that of Mainland Chinese; the positive effects of the Mainland Chinese consumers’ negative attitude on distrust is higher than that of Taiwanese consumers.

Research limitations/implications – This experimental design is expected to have better internal validity because the external variables are controllable. However, it might constitute a threat to external validity, the validity of applying the conclusions outside the context of this study. Besides, the small number of recovered samples and the limited coverage might result in biased research results.

Practical implications/Social implications – This research suggests that companies should formulate strategies by adapting to local conditions. By building a complete customer interaction mechanism, firms are able to ease consumers’ distrusting beliefs ; by establishing a speedy response mechanism, firms are allowed to promptly cope with customer complaints or related negative information, decreasing the level of customer dissatisfaction. The major factor that distinguishes shopping at stores from online shopping is the direct contact with physical products. Companies should understand that negative reviews have stronger influence than positive ones do, and highly value the importance of objective evaluation systems in order to realize more prosperous e-commerce.

Originality/value – By understanding consumers from a dualistic attitude perspective, we might come closer to reality, and be able to more accurately predict and penetrate consumer behaviour. Through verifying and comparing the online shopping behaviour of consumers on two sides of the Taiwan Strait, we see their differences in perceptions and patterns regarding product reviews.

Keywords – Product Attitudes, Distrust Beliefs, Purchase Intention, Comparison between Cross-Strait