Perceived effective sanctions and its effect on customer initial trust in an online vendor: a conceptual paper

Abstract

Perceived effective sanction, in this study, refer to perception that the customers have the ability to impose punishment on the vendor if the vendor does not fulfill his or her promises. This paper is aimed to examine the effect of perceived effective sanctions on trusting beliefs and trusting intention on an unfamiliar online vendor. This study proposes that a strong perception of effective of imposing sanctions on an unfamiliar online vendor may lead to customers’ trustworthiness perception of the vendor and subsequently, their tendency to rely on the vendor. This paper also proposes the methodology to validate the research model.