The influence of perceived effective sanctions on customer's initial trusting beliefs and initial trusting intention towards unfamiliar web retailers.

Abstract

Past studies have conceptualized initial trust in diverse ways. Although many have examined the effect of perceived effective sanctions on initial trust, the outcomes are still unclear, and more aspects remain untapped. As such, this study assesses the effect of perceived effective sanctions on customers' initial trusting beliefs and initial trusting intentions towards unfamiliar web retailers. Data collected from a survey were statistically analyzed using the Structural Equation Modelling (SEM) technique. As a result, perceived effective sanctions displayed a significantly positive effect on both initial trusting beliefs and intention. This study enhances the understanding of initial trust and its association with perceived effective sanctions. It also offers further understanding of the effect of the construct on initial trust within the under-researched area in Malaysia. Practically, this study facilitates less reputable web retailers in devising effective strategies to build initial trust amongst consumers.