Effect of trust on online purchase behaviour

Abstract

Internet has become an important tool for consumers’ everyday lives. Infocomm Development Authority of Singapore’s (IDA) Annual Survey on Infocomm Usage 2007 had shown that consumers are more receptive of online shopping as compared to a few years ago. Businesses are also jumping on the online bandwagon and online shopping market revenue turnover in Singapore is expected to reach US$6.6 billion in 2010, according to a MasterCard Insight Report on online shopping in 2008. With a myriad variety and prevalence of e-commerce shops on the internet, it would be beneficial for businesses to understand the factors effecting online purchase intention of consumers. Particularly in this research, trusts (institutional, interpersonal & dispositional) and its effects on purchase frequency of Singaporean consumers (individualists and collectivists) are examined.