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Unfamiliar online retailers far exceed the number of familiar stores, yet they lack consumer trust that may result in lower sales and, ultimately, failure. This study develops and tests a conceptual framework using the signaling theory to understand how marketing signals of the website features influence consumer website investment perception and initial trust formation in unfamiliar small online retailers. Path analysis reveals that the indirect effect of website investment furnishes insights into the differential impact of website features on initial trust formation. Results also show that lower trust propensity significantly dampens initial trust formation in a low-investment situation. The study provides implications for practice and directions for future research.
Sharma et al. (2024) studied this question.
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