Trust in Internet Shopping

Despite the phenomenal growth of Internet users in recent years, the penetration rate of Internet shopping is still low and one of the most often cited reasons is the lack of consumers’ trust (e.g. Hoffman et al., 1999). Although trust is an important concept in Internet shopping, there is a paucity of theory-guided empirical research in this area. In this paper, a theoretical model is proposed for investigating the nature of trust in the specific context of Internet shopping. In this model, consumers’ trust in Internet shopping is affected by propensity to trust and two groups of antecedent factors, namely, "trustworthiness of Internet vendors" and "external environment". Trust, in turn, reduces consumers’ perceived risk in Internet shopping. As an important step towards the rigorous testing of the model, the necessary measurement instrument has been developed with its reliability and validity empirically tested. The psychometric properties of the measurement instrument have been investigated using both a classical approach (based on Cronbach’s alpha and exploratory factor analysis) and a contemporary approach (based on structural equation modeling techniques), as a way of methods triangulation for validating instrument properties. The resulting instrument represents a rigorously developed and validated instrument for the measurement of various important trust related constructs. This research contributes to the development of trust theory in e-commerce and add to the repository of rigorous research instruments for IS survey researchers to use.