DETERMINANT OF CUSTOMER TRUST ON E-COMMERCE AND ITS IMPACT TO PURCHASE AND WORD OF MOUTH INTENTION: A CASE OF INDONESIA

Abstract

Even though e-commerce business grows rapidly, still building customer trust on e-commerce becomes more difficult than building customer trust on physical store. This study aims to identify factors that influence customer trust on e-commerce, to compare how important those factors in influencing customer trust and furthermore, to assess how important customer trust for purchase and word of mouth intention. This study combines TOE (Technology, Organizational and Environment) and TPE (Technology, Personal and Environment) framework as reference models used in hypotheses modeling. This research uses quantitative study by conducting survey and accordingly distributing questionnaires to e-commerce users, thus obtaining 151 respondents. The result of this study showed the most essential factors that influence customer trust on e-commerce are web quality and vendor image. This study also revealed that customer trust has positive and significant impact to customer intention to purchase and word of mouth intention.