The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1468-4527.htm

Online buying
How perceived risk affects
online buying
Sonia San Martı́n
Department of Economics and Business Administration, 629
Universidad de Burgos, Burgos, Spain, and
Carmen Camarero Refereed article received
9 July 2008
Department of Business Administration and Marketing, Approved for publication
Universidad de Valladolid, Valladolid, Spain 20 December 2008

Abstract
Purpose – The purpose of this paper is to suggest a model that reflects the role that web site
cognitive and experiential signals, firm reputation, bricks-and-mortar experience, and consumer
satisfaction play as determinants of trust in the web site, taking into account the moderating effect of
consumer-perceived risk when buying online.
Design/methodology/approach – The investigation uses quantitative research methods. Data
collected from interviews with 507 Spanish online buyers are analysed through structural equation
modelling.
Findings – Internet users who buy online more frequently can trust a web site only based on their
previous satisfaction, whereas users who perceive more risks need to perceive that the firm has a good
reputation and bricks-and-mortar experience apart from other signals such the quality of the service.
Practical implications – The results show interesting implications for online vendors, who should
apply different commercial strategies to potential buyers according to the level of perceived risk.
Originality/value – This study empirically considers several signals that electronic retailers send to
the market in order to create buyer trust and satisfaction, while most studies on signals have been
theoretical and normative or have not contemplated so many signals simultaneously. Besides, this
paper has extended knowledge of the process of the generation of customer trust in online contexts for
different types of users according to their level of perceived risk.
Keywords Risk management, Trust, Customer satisfaction, Electronic commerce
Paper type Research paper

Introduction
A primary objective for fostering business-to-consumer (B2C) e-commerce is to
mitigate the lack of consumer confidence (Yoon, 2002; Ha, 2004) and to increase the
satisfaction in each transaction the consumer accomplishes. Relationship marketing
literature has largely related satisfied consumers with repeated purchases and even
with loyalty. Satisfaction is also essential to reduce the consumer’s uncertainty about
the virtual firm’s honesty and its ability to provide products and services efficiently. In
fact, the concept of trust is relevant in uncertainty situations (Ha, 2004).
Online Information Review
Vol. 33 No. 4, 2009
The authors would like to thank the Ministerio de Educación y Ciencia (Spain) for its support of pp. 629-654
q Emerald Group Publishing Limited
this research project (Ref SEJ 2007-63378). Also, the authors are indebted to the anonymous OIR 1468-4527
reviewers and the OIR Editor for their valuable suggestions and helpful comments. DOI 10.1108/14684520910985657
OIR Trust is mentioned in multiple studies as a key variable to promote B2C e-commerce
33,4 and is an important factor for successful online transactions (Bart et al., 2005; Belanger
et al., 2002; Corbitt et al., 2003; Vrechopoulos et al., 2004; see also a review of the role of
trust in the online environment in Salo and Karjaluoto, 2007). Trust creates positive
attitudes about the future behaviour of the firm and influences the consumer’s buying
intentions, satisfaction and loyalty (Ganesan, 1994; Gefen, 2000; Yoon, 2002). However,
630 the generation of trust and the formation of online consumer satisfaction could depend
on the extent to which the consumer perceives risks and costs in online buying (e.g.
transaction costs or learning costs). The risks of online shopping are different from
those of bricks-and-mortar store shopping. Some causes of risk are the consumer’s
inability to value the quality of the product directly, the lack of personal contact with a
salesperson, the costs of learning how to use the internet or site, the change from other
channels to the electronic one, the generation of anxiety and stress for consumers who
don’t feel comfortable using the internet, the absence of interaction and social contact
with other people, and security of payment and personal information. However, the
perception of risks and costs is not identical for all consumers. While some buyers
perceive electronic commerce as a risky and expensive way of buying, others value the
advantages of e-commerce, such as the ease of information searching and of comparing
products and prices. Montoya-Weiss et al. (2003) indicated that the perceived risk
depends on the buyer’s general internet expertise as well as on the information
provided on the web site. In any case, it can be supposed that the perceived risk will
lead consumers to consider different signals when forming their attitude and feelings
towards a web site (satisfaction and trust).
In this context and following relationship marketing, signalling theory and online
behaviour models such as the technology acceptance model (TAM), the aim of this
study was to evaluate the degree to which the risk the consumer perceives in online
commerce determines the firm’s signals that influence the consumer’s satisfaction and
trust in a web site. More specifically, it is suggested that in order to solve the consumer
adverse selection problem, online vendors will try to generate trust by sending signals
like reputation, the firm’s bricks-and-mortar experience, and service quality or
warrantee offers (a firm’s characteristics and web site cognitive signals); but also
through previous satisfaction, in which variables like the design of the web site or the
interactive experience (experiential signals) have an influence. We have analysed the
moderating effect of the perceived risk when buying online and propose that the effect
of some signals on satisfaction and trust in the case of consumers who perceive high
risk is different from the effect on consumers who perceive low risk. It is important to
note that few studies are known to have examined the moderating effect of perceived
risk in B2C (Mayer et al., 1995; Roy et al., 2001; Kong and Hung, 2006).
In summary, the contributions of this paper are:
.
the consideration of variables and arguments from different approaches and
theories;
.
the analysis of risk as a moderating variable, which can produce differences in
perceptions, attitude and behaviour depending on the level of risk the consumer
perceives when buying online; and
.
the testing of an empirical model with the help of structural equation modelling
and multi-group analysis to know the moderating effect of risk.
Perceived risk in online commerce Online buying
In an online environment, in contrast to a physical one, greater risk and less trust are
expected due to the fact that there is major difficulty in evaluating a product or service
as there are no visual or tangible indications about the quality of the product nor
face-to-face interaction with sales staff, and the purchase is affected by security and
privacy issues (Hawes and Lumpkin, 1986; Laroche et al., 2005). In this sense, there will
be higher asymmetric information about products and firms in an online context than 631
in an offline context, which in turn will cause higher perceived risk by the less
informed party, in this case the online buyer. When consumers find it difficult to
distinguish between suppliers with different levels of quality in their products, they
face the problem known in agency theory as “adverse selection” (Singh and
Sirdeshmukh, 2000). Although satisfaction and trust in a web site are essential to
attract and maintain e-buyers, it can become difficult to create satisfaction and trust
when the consumer is afraid of buying online. Knowledge about the risk the consumer
perceives may help in designing suitable strategies to achieve consumer satisfaction
and trust in a web site.
Risk plays an essential role in consumer behaviour, and it makes a valuable
contribution towards explaining information-searching behaviour and consumer
purchase decision making (Mayer et al., 1995; Corbitt et al., 2003; Barnes et al., 2007).
Empirical studies show that perceived risk reduces the willingness of consumers to
buy goods over the internet (Tan, 1999; Barnes et al., 2007). Risk has been defined as an
attribute of the decisions that reflects the variance in feasible results (Gefen et al., 2002)
and includes all the negative consequences of a purchase for a consumer that cannot be
anticipated (Cunningham, 1967). There are two theoretical perspectives about risk: one
that is centred on a decision result’s uncertainty and another centred on the costs or
consequences of such results (Cunningham, 1967; Gefen et al., 2002; Barnes et al., 2007).
There is not consensus on the definition of risk as some authors allude to positive and
negative uncertain results of decisions, whereas others only allude to negative results
of decisions (Gefen et al., 2002).
There is a clear distinction between the risk related to the channel or the place where
the product is offered and the risk related to the seller or the product (Gefen et al., 2002;
López-Nicolás and Molina-Castillo, 2008). In e-commerce the retail channel is the
internet. The risk linked to the channel is usually greater than the risk linked to the
seller (or the product) in online shopping. Hence, this work will consider the general
risk perceived in online buying. Online buying may be associated with negative results
that are not found in traditional commerce, such as security and privacy problems
(Doolin et al., 2005; Salo and Karjaluoto, 2007), the lack of salesperson advice, or the
inability to touch, smell or see the product (Zhou et al., 2008) – factors that enhance the
adverse selection problem and the perception of risk. Therefore, in online buying it is
common to use the probability of obtaining negative consequences as a way of
measuring risk.
The relationship between risk, trust and buying behaviour has been analysed from
three different perspectives (Gefen et al., 2002; Mayer et al., 1995; Salo and Karjaluoto,
2007): as a mediating variable (trust reduces the perceived risk), as a moderating
variable (the influence of trust on behaviour depends on the level of risk perceived in a
way that when the perceived risk is high, the importance of trust when making the
decision to buy online is higher) and the “threshold” model (trust is formed
OIR independently of the risk perceptions and consumers may perceive risks before and
33,4 after trust is formed).
Anderson and Srinivasan (2003) have indicated that perceived risk is an important
variable mediating trust in the web site, and Wang et al. (2006) studied the role that
consumers’ perceived risk plays in the brand loyalty or web site loyalty
transformation. Rodgers et al. (2005) have stated the moderating role of consumer
632 experience (an antecedent of risk) in the relationship between online satisfaction and
loyalty. Nevertheless, the moderator role of risk in consumer evaluation of web site
signals as antecedents of satisfaction and trust has not been analysed yet. That is why
this paper focuses on the moderating role of risk in the relationship between firm and
web site signals and consumer trust and satisfaction.
Therefore, it is proposed here that it is possible that consumers show different
attitudes, behaviours and consequently degrees of trust according to their perception of
risk. Although there is a shortage of reference literature, it is reasonable to suppose
that while certain individuals perceive high risk in online shopping and will only be
prepared to trust a certain web site if they perceive many signals from a firm and if
they have had a satisfactory previous experience, other individuals who perceive less
risk will require fewer signals from the firm or web site to trust, and previous
satisfaction will play an important role. Tan (1999) has suggested that the perceived
risk can create differences in the buyers’ perceptions of signals such as brand
reputation or warranty in e-commerce. Roy et al. (2001), Mayer et al. (1995) and Kong
and Hung (2006) all contemplated the moderating role of perceived risk on the
relationship between trust and results and/or behaviour, but we have not found any
study that has analysed the moderating role of perceived risk on the perception of firm
and web site signals.

Model development and research hypotheses

According to relationship theory, trust and satisfaction in online contexts are essential
to maintaining long-term and solid relations with consumers. The concept of
satisfaction implies the fulfilment of expectations as well as a positive and affective
state based on previous results obtained in the relationship with the web site. Trust in
an online context implies, more than ever, the consumer’s willingness to be vulnerable
to the company and the belief that the firm will fulfil the promises and will not exploit
that vulnerability for its benefit (Ranaweera et al., 2005). It can be considered as a belief
or state of the consumers’ emotional security that a web site is going to fulfil their
expectations of results or performance, especially when having to enter personal data
or perform online payments. The key role of trust and its relationship with the
evolution of electronic commerce and with loyalty to a web site have been analysed in
various investigations (Gefen, 2000; Harris and Goode, 2004). On the internet this trust
is lacking and it can be affirmed that the lack of trust is one of the clearest barriers to
the growth of electronic commerce (Gefen, 2000; Yoon, 2002).
There are different signals that online vendors can send to the market in order to
solve the adverse selection problem. Signalling theory helps us to associate the
underlying difficulties of evaluating products and the relevance of some signals to
efficient decision making. Some of these mechanisms that the consumer can use to infer
the quality of the product or the performance of the store and that affect their
satisfaction and trust are: the warranty (Emons, 1988; Tan, 1999; Biswas and Biswas,
2004), the company’s reputation (Anderson and Weitz, 1992; Hawes and Lumpkin, Online buying
1986), advertising (Bagwell and Ramey, 1988; Nelson, 1974), the brand (Bart et al., 2005;
Rao et al., 1999; Teas and Agarwal, 2000), the value for money relation (Rao et al., 1999),
the web site’s security and privacy policies (Bart et al., 2005; Belanger et al., 2002), price
premium (Dawson et al., 2003), and detailed and objective information about the
product (Fiore, 2002).
These mechanisms include both firm and web site characteristics. The firm 633
characteristics refer mainly to reputation and bricks-and-mortar experience, which
allow the consumer to infer the type and quality of a firm’s service. As for the web site
characteristics, some of them are more objective and affect the individual’s cognitive
perception of the web site, while others are related to the individual’s experience of the
web site. Therefore, two kinds of signals will be considered: cognitive and experiential
signals.
In this paper, cognitive signals comprise service quality, warranty and web site
security and privacy policies, while experiential signals include web site design and
aesthetics and the interactive experience. In a similar way, Lee and Overby (2004)
differentiated between experiential value for online shoppers – benefits from the
entertainment, the escapism, the visual appeal and the interactivity involved with
online shopping; and utilitarian value, which represents the assessment of functional
benefits (price and time savings, excellence in service and selection). Wolfinbarger and
Gilly (2001) have also suggested that two types of behaviour can be identified in online
customers: experience-based behaviour (those who buy for fun and enjoyment – more
related to emotions) and goal-oriented or utilitarian shopping (those task-oriented,
efficient, rational and deliberate – more related to cognition).
The role of risk in consumer behaviour has been put forward by the TAM (Davis,
1989). The TAM has been proposed as an interpretation of users’ acceptance of
technologies and it is supported by several empirical studies. The TAM assumes that
perceived usefulness and perceived ease of use are major influences on an
individual’s attitude towards using technology and thus, ultimately, will be related to
actual use (Davis, 1989). Davis defined perceived ease of use as “the degree to which a
person believes that the use of a particular system would be free of effort” (Davis,
1989, p. 320), and perceived usefulness as “the degree to which a person believes that
the use of a particular system would enhance his or her job performance” (Davis,
1989, p. 320).
The TAM has been successfully applied in the acceptance of diverse technologies
such as the personal computer, mobile devices and other IT-related applications (Davis
et al., 1989; Pavlou, 2003; Salo and Karjaluoto, 2007). It has also been applied to
consumers’ attitudes towards the use of e-commerce (Gefen et al., 2003) or mobile
commernce (m-commerce) (Hong et al., 2006). Several authors have analysed the
features of the web site as determinants of the perceived ease of use and the perceived
usefulness. According to Ahn et al. (2004), system information and service quality
determine the perceived usefulness and the perceived ease of use of web retail. O’Cass
and Fenech (2003) indicated that the perceptions of usefulness and ease of use depend
on the web experiences (perceived security, satisfaction during the visit, shopping
compatibility or internet self-efficacy) of the consumer. Moreover, there are authors
who have related web site design with better decision making, higher usability and
higher satisfaction (Agarwal and Venkatesh, 2002; Hu et al., 2004). From a more global
OIR perspective, Ha and Stoel (2008) proposed e-shopping quality, which involves privacy
33,4 and security, web site design, customer service and the experience when shopping, as
the main determinant of perceptions of ease of use and usefulness. Hong et al. (2006)
merged the TAM with the expectation-confirmation model, and indicated that
perceived usefulness and perceived ease of use determine the buyer’s satisfaction.
Salam et al. (2005) developed a model that combined trust into TAM, describing the
634 relationships among external factors, beliefs, attitude, intentions and behavioural
outcome. Gefen et al. (2003) and Chau et al. (2007) have suggested that perceived ease of
use is one factor that affects trust.
Thus, considering all these proposals, we can affirm that the cognitive signals
(quality of the service, security and warranty) and the experiential signals (design and
interactivity) will influence the attitude towards the web site, that is, satisfaction and
trust through the perceptions of a greater ease of use and usefulness. Following this
reasoning, we propose a model of online buying persuasion that reflects the effect of
the web site characteristics and the firm characteristics on the consumer’s positive
attitudes towards the web site, that is, satisfaction and trust. Figure 1 shows the
proposed model and the hypotheses.

Firm characteristics
As we have indicated before, two relevant firm characteristics that can influence
customers’ trust in online shopping are reputation and bricks-and-mortar experience.

Brand reputation
The literature shows that the brand is a signal of product or service quality. It is a
variable that comprises service information and that consumers use to reduce the effort
of searching for information and the risk perceived in the selection of the firm (Rao
et al., 1999; Teas and Agarwal, 2000). Moreover, it supposes an incentive to good
performance of the firm with the aim to maintain the positive image they have
achieved with effort. Reputation plays an important role in online sales as a sign of

Figure 1.
Online buying persuasion
model
product quality, given the absence of salespeople to advise the buyer and given the Online buying
inability to see, touch and try the products before the purchase. It involves a key
purpose in building consumers’ confidence and trust in online retailing services. A
positive reputation can be seen as providing assurances of ability, integrity and
goodwill, thereby increasing trust, particularly in first-time transactions (Bramall et al.,
2004; Ha, 2004; Park and Stoel, 2005; Teo and Liu, 2007).
635
Bricks-and-mortar experience
An important variable in consumer-web site relations is the bricks-and-mortar
experience of the firm that also retails online. It is evident that a consumer’s behaviour
and attitude towards a firm that only retails online may be different to that towards a
firm that has retail experience in physical stores and has a physical presence outside
the web site. In fact, it is expected that bricks-and-mortar experience may contribute to
increasing the consumer’s trust in the web site and to the consumer making repeat
purchases from the web site (Dawson et al., 2003; Bramall et al., 2004).
These two primary information mechanisms – reputation and bricks-and-mortar
experience – act as promises of what the consumers can expect of the electronic
shopping experience (Davis et al., 2000). These promises will be especially appreciated
by individuals who are afraid of online buying. Individuals who perceive a low risk in
online buying are likely to make their buying decisions more quickly and are less likely
to take into account aspects outside of the web site. In contrast, individuals who are
more fearful will behave in a more cautious way, searching for external information
that warrantees a successful buying decision. Their trust, therefore, more likely derives
from the extra information that the firm’s reputation or offline experience can provide.
Wang et al. (2004) have indicated that risk reduction resulting from experiences with a
brand is an important method of coping with uncertainty in internet purchase
situations. In the same way, other studies have suggested that a well-known brand is a
good risk reducer and that the increased perceived risk of online transactions heightens
the effect of the product brand name on online buying (Van den Poel and Leunis, 1999;
Ward and Lee, 2000). Therefore:
H1. If the consumer perceives high risk when buying online, the effect of company
characteristics (reputation and bricks-and-mortar experience) on consumer
trust is higher than if the consumer perceives low risk.

Web site characteristics

As we have mentioned before, a web site’s characteristics can act as cognitive or
experiential signals. The influence of these signals on buyer trust may be direct or
indirect. Cognitive signals allow the buyer to trust the firm’s capability and good will.
Moreover, such characteristics may also affect trust indirectly because once
individuals have purchased, the perception of these characteristics increases their
satisfaction and consequently their trust in the firm. Experiential signals are more
related to emotions and are proposed to have an effect on trust only once they have
been experienced and have produced a positive effect on satisfaction (Lee and Overby,
2004).
OIR Service quality (cognitive)
33,4 In an online context, service quality may be reflected in the firm’s effort to provide
better service through a wide assortment of products, a good quality-price relation, a
good delivery service, broad and detailed information on the product and services or a
greater customisation of them (Trocchia and Janda, 2003). The literature highlights the
relation between service quality and satisfaction (Feinberg and Kadam, 2002; Ha, 2004;
636 Ribbink et al., 2004; Lee and Overby, 2004; Lee and Lin, 2005; Park and Kim, 2006;
Rodgers et al., 2005). Service quality has also been considered decisive in increasing
trust. Singh (2002) indicated that online customers have increasing expectations about
services offered to enhance their online shopping experience. The relationship between
service quality and trust has been tested in an online context by Harris and Goode
(2004), Gummerus et al. (2004) and Ribbink et al. (2004).

Warranty (cognitive)
The warranty shows the firm’s commitment, not only to the service quality, but also to the
fulfilment of consumer expectations. The warranty is an explicit contract that reflects the
solution to future contingencies, like product failure (Emons, 1988). It can be assumed that
a firm that provides low quality services will not be interested in offering a high quality
warranty as this would involve more costs deriving from more complaints than in the case
of a high quality service. Return-policy leniency is one way to foster trust in remote
purchase environments, including online shopping (Tan, 1999; Wang et al., 2004).

Security and privacy policies (cognitive)

Security and privacy for online transactions is recognised as the main attribute of an
online store providing information to customers for making decisions. Customers with
a greater awareness of security and data privacy will be more likely to use e-commerce.
This awareness can be built by giving customers clear and obvious access to the
security and privacy policies of the web site or by the design of a protocol that ensures
fair exchange, that neither the customer nor the merchant suffer a loss due to unfair
practices of the other player in the transaction (Ray and Zhang, 2008). In the case of
electronic banking, Yousafzai et al. (2005) demonstrated that clarifying security and
privacy policies leads to the customers developing trust in the bank. According to
Wang et al. (2004), providing privacy (and security) disclosures is an effective way for
online retailers to develop cooperative relationships with shoppers. They have stated
that most web users would cooperate with information requests if the sites provided a
statement regarding how the collected information would be used. Security and
privacy policies also foster customer satisfaction. As perceptions of security and
privacy risk decrease, satisfaction with the information service is expected to increase
(Ha, 2004; Park and Kim, 2006).
Notwithstanding the previous reasoning, the magnitude of the influence of
cognitive signals on satisfaction and trust will likely depend on the level of risk the
buyer perceives. When consumers fear that in online buying their privacy might be
violated, their personal data divulged and that promises made will not be kept, they
will probably be interested in the information and warranties the firm offers in order to
diminish their fear of potential negative buying experiences. Their buying process will
be more rational and they will evaluate more alternatives before making a decision.
Montoya-Weiss et al. (2003) indicated that the information content may help consumers
to reduce the uncertainty and perceived risk associated with the online channel. In Online buying
contrast, when the perceived risk is low and the consumer considers online buying as
routine, he or she will pay less attention to the objective attributes and trust and
satisfaction will likely be less related to the firm’s cognitive signals.
Rodgers et al. (2005) explained the moderating role of risk on e-satisfaction on the
basis of the theories of attitude formation and change – the Elaboration Likelihood
Model (ELM) (Petty et al., 1983). Following their reasoning and if applied to different 637
degrees of internet expertise, it is reasonable to consider different routes of attitude
formation for different degrees of risk perception. Consumers who perceive more risk
will be more involved in each purchase and will form their attitudes (satisfaction and
trust) directly through a central route. They will process information carefully and the
main determinant of attitude will be the strength of the informative content of the web
site – in our case cognitive signals such as the quality of the service, the security and
privacy policies, and the warranty. Rodgers et al. (2005) found that online satisfaction
is influenced by information quality in the case of buyers with less online experience,
who are likely to be those who perceive more risk (Park and Stoel, 2005;
Montoya-Weiss et al., 2003). Barnes et al. (2007) also found that what they named
“risk-averse doubters” are people who perceive high risk and manifest low shopping
pleasure, have rarely purchased over the internet and are sceptical about new
experiences. Therefore:
H2. If the consumer perceives high risk when buying online, the effect of cognitive
signals (quality of the service, security and privacy policies, and warranty) on
satisfaction is higher than if the consumer perceives low risk.
H3. If the consumer perceives high risk when buying online, the effect of cognitive
signals (quality of the service, security and privacy policies, and warranty) on
trust is higher than if the consumer perceives low risk.

Interactivity (experiential)
In a similar manner to what happens in offline stores where there is interaction with
salespeople, on the web the perceptions depend on the interaction with the firm’s web
site. In fact, the first contact with the web site constitutes a fundamental first step
(Ranaweera et al., 2005). Interactivity refers to the ability of web sites to dynamically
generate outputs based on customer queries and searches. In this sense, a
well-designed interactive web site could generate higher satisfaction by providing
greater control to customers to personalise the information search (Shankar et al.,
2003). It is possible to say that interactivity and the web site purchase experience are
immediate determinants of satisfaction throughout the act of purchase (Zeithalm et al.,
2000). According to Lee and Overby (2004), interactivity provides an experiential value
to the consumer (in the form of affective and social stimulation), which enhances the
consumer’s total internet shopping experience (Cheng and Chang, 2003) and
contributes to consumer satisfaction.

Design of the web site (experiential)

In the online environment, the web site is the meeting place between the consumer and
the firm – the web site is the only means of communicating with customers; therefore
its design (appearance and structure) is of great importance (Bramall et al., 2004;
OIR Gummerus et al., 2004). The design characteristics of the web site (browsing structure,
33,4 informative contents and graphic style) will therefore have an impact on the quality
evaluations of the service provided by the electronic channel and on consumer
satisfaction (Montoya-Weiss et al., 2003; Feinberg and Kadam, 2002). Recent empirical
studies have found that web site design factors are strong predictors of customer
satisfaction (Lee and Lin, 2005; Wolfinbarger and Gilly, 2003).
638 Following the previous reasoning, experiential signals can influence online buyer
satisfaction, but the existence of different effects depending on the consumer’s
perception of risk is probable. The consumer who perceives high risk when buying
online is expected not to pay too much attention to the external and subjective elements
of the web site, such as the design and the interactivity. The satisfaction of such a
consumer will derive basically from the objective results, that is, the efficiency of the
transaction terms fulfilment. However, the consumer who is less afraid of e-commerce
or more experienced in online buying will have higher expectations of the web site
service and will be more predisposed to enjoy the online shopping, and therefore will
value it not only on the basis of the objective attributes (i.e. cognitive signals), but also
on account of the pleasure obtained when buying. The satisfaction of these consumers
will be also linked to the emotional results of the transaction. Following the reasoning
of the theory of attitude formation (ELM), it is supposed that when buyers perceive less
risk, they are less involved in every particular purchase and they form their attitude
indirectly through a peripheral route, which includes the design of the web site and the
interactivity. Also, Rodgers et al. (2005) found that the system quality (interactivity and
access) has a higher effect on satisfaction for more experienced buyers (the ones who in
the majority are likely to perceive less risk) (Bennett et al., 2005; Park and Stoel, 2005;
Montoya-Weiss et al., 2003) than for less experienced buyers. Therefore:
H4. If the consumer perceives high risk when buying online, the effect of
experiential signals (design of the web site and interactive experience) on
satisfaction is lower than if the consumer perceives low risk.

Satisfaction as an antecedent of trust

The degree of overall pleasure or satisfaction felt by consumers in previous exchanges
(resulting from the ability of the service to fulfil the consumer’s desires, expectations
and needs in relation to the service) has been identified as an important antecedent of
consumer attitude (Oliver, 1980) and trust (Ravald and Grönroos, 1996; Selnes, 1998). A
series of positive encounters will increase consumer satisfaction and consequently will
enhance trust and the probability of repeat purchasing (Morgan and Hunt, 1994;
Selnes, 1998). The positive influence of satisfaction on trust has been proposed in an
offline context by authors like Ravald and Grönroos (1996), Selnes (1998) and Lau and
Lee (1999), and has been supported in an online context by authors such as Ribbink
et al. (2004) and Park and Stoel (2005).
Park and Stoel (2005) indicated that, even if shoppers are unable to touch, feel or try
products, those who have had a positive and satisfactory purchase experience will not
perceive so many dangerous consequences as those who have had no purchase
experience. The individuals who do not perceive high risk will take into account
previous experiences. A positive experience with a web site will reinforce their trust in
the online channel and will favour future purchases from the same web site. In
contrast, for individuals who perceive high risk, a lower effect of satisfaction on trust is
expected because the high perceived risk will prevent them from trusting the web site Online buying
even if they have had one satisfactory experience. Therefore:
H5. If the consumer perceives low risk when buying online, the effect of previous
satisfaction on trust is higher than if the consumer perceives high risk.

Methodology
The empirical study was based on information gathered through a questionnaire given
639
to internet users and online shoppers. In order to reach these users, questionnaires were
sent to several cyber-centres (public or private centres with internet access). Several
regional development agents and cyber centre supervisors collaborated in the data
collection process, enabling the distribution and collection of questionnaires in several
Spanish regions. The agents and supervisors were asked to deliver the questionnaires
to users of the cyber centres who had previously stated that they buy products and
services over the internet. The period over which the survey took place was May, June
and July 2006, after which a sample of 533 individuals was obtained. After an initial
filter process where 26 questionnaires were eliminated due to incompleteness or
ineligible answers, the final sample included 507 individuals.
Table I shows the sample divided by sex, age and education, and a comparison with
the Spanish internet user profile according to information provided by the Spanish
Association of Electronic Commerce (AECEM, 2007). In the questionnaire respondents
were asked to name a web site where they had shopped at least once. The web site
selected by the individuals was subsequently evaluated in terms of satisfaction in
shopping and trust. As it is expected that customers choose the web sites they prefer
most, that they trust and are satisfied with (so the range of scale variation is reduced),
it should be taken into account that respondents should be online shoppers and that is
why this method of collecting data was used.
In order to measure the model variables, five-point Likert scales were used, taking
different literature projects as a reference with adaptation as necessary. The proposed
scales and the corresponding descriptions are shown in Table II.

Sex Age Education

Sample characteristics
Male 53.5% Under 18 5.9% Without studies 0.8%
Female 46.5% 18-24 45.1% Primary education 4.0%
25-34 29.3% Secondary education 17.5%
35-44 12.3% Professional studies 16.1%
45-54 5.1% University 61.5%
55-64 1.6%
Over 64 0.6%
Profile of Spanish internet user a
Male 59.4% 15-24 15.2% Primary education 2.3%
Female 40.6% 25-34 37.5% Secondary education 54.0%
35-49 30.3% University 43.7%
50-64 15.0%
Over 64 2.1%
Table I.
Source: a AECEM, 2007 Sample characteristics
 33,4
OIR

640

Table II.
Variables measurement
Variables Items Description Mean S.D. l

Formative scales
Reputation REP1 Its brand is very well known. 3.69 1.13
REP2 It has a good reputation. 3.81 1.00
B&M experience B&M1 It has experience retailing in physical stores. (Dichotomical variable) 0.55 1.45
A warranty is provided to cover possible unforeseen events or product/
Warranty WAR1 service faults 3.37 1.08
There is the possibility of returning a product if the customer is not
WAR2 satisfied 3.18 1.16
Security and privacy
policies SEC1 It is safe and has a privacy policy regarding customer information 3.80 1.02
SEC2 The site informs the customer about security and privacy policies 3.78 1.10
SEC3 I feel safe when sending personal information 3.56 1.16
SEC4 I think my rights regarding my personal details are respected 3.57 1.09
I do not think my details are used to be transferred to other companies or
SEC5 to send me advertising which I have not consented to 3.44 1.21
I think the site has mechanisms that warrantee the safe transmission of
SEC6 its users’ information 3.60 1.07
Detailed information is provided regarding the range of products and
Quality of the service QOS1 services offered 3.84 1.00
QOS2 Compliance with promised quality and delivery term conditions 3.79 1.01
QOS3 It offers good quality-price relation 3.80 0.96
QOS4 It offers customised products and services 3.26 1.15
QOS5 It offers a wide range of products 3.86 1.05
Interactive
experience IEX1 The intention is to promote interactivity with the visitors 3.15 1.00
I perceive the shopping experience as if I were buying in the physical
IEX2 store 3.00 1.20
Design of the web
site DOW1 Browsing is easy 3.92 1.00
DOW2 The site contains images and it is fun to shop on it 3.68 1.05
DOW3 The site has an attractive, modern and professional design 3.72 0.92
(continued)
Variables Items Description Mean S.D. l

Reflective scales
Trust a ¼ 0.868;
AVE ¼ 0.533 TRU1 I think this web site keeps its promises 3.77 1.07 0.847
TRU2 I think the information provided on this web site is true and honest 3.82 0.86 0.833
TRU3 I think I can trust this web site 3.80 0.93 0.847
TRU4 This web site never issues false statements 3.48 1.04 0.586
This web site stands out for its honesty and transparency while offering
TRU5 its products to the user 3.65 0.92 0.679
TRU6 I think this web site operates in an ethical manner 3.65 0.95 (a)
TRU7 I think this web site is competent to fulfil its mission 3.86 0.88 0.693
I think this web site has the necessary resources to successfully carry
TRU8 out its activities 3.88 0.91 0.671
Satisfaction
a ¼ 0.871;
AVE ¼ 0.723 SAT1 I think I made the right decision by using this web site 3.89 1.03 (a)
SAT2 My shopping expectations have been met by this web site 3.88 0.92 0.840
SAT3 The shopping experience on this web site has been satisfactory 3.92 0.90 0.902
SAT4 I am happy with the products I have bought on this web site 3.96 0.86 0.841
SAT5 I am generally happy with the service provided by this web site 3.97 0.90 0.815
Perceived risk
a ¼ 0.813; If I want to buy a product/service online, I fear that the expenditure is
AVE ¼ 0.478 RIS1 worthwhile 3.07 1.273 0.721
RIS2 Buying a product/service online can involve a waste of money 2.96 1.189 0.844
RIS3 Buying a product/service online can involve a waste of time. 2.71 1.189 0.726
RIS4 I am worried about wasting time buying online 2.76 1.139 0.494
If I want to buy a product/service online I fear not obtaining the desired
RIS5 results 3.26 1.166 0.696
RIS6 I fear that the product/service bought online will not be as I want 3.43 1.171 0.616
Notes: x2(114)=466.06 (P=0.000); GFI =0.898; AGFI =0.863; CFI =0.965; RMSEA =0.0796; correlation trust – satisfaction =0.797; trust – perceived risk =-
0.167; satisfaction –perceived risk = 2 0.168; (a) deleted items
Online buying

641

Table II.
OIR The web site attributes proposed in the model are the quality of the service, the
33,4 security and privacy policies, the warranty, the level of interactivity and the design of
the web site. The measures of these variables were based on the studies by Burke
(2002), Montoya-Weiss et al. (2003), Harris and Goode (2004), Ranaweera et al. (2005)
and Yadav and Varadarajan (2005), however some of the indicators were specifically
created for this project. The scales above were formative as each one gathered
642 different aspects that the construct encompasses. Therefore the quality of the service
was measured with five indicators that referred to the information provided, the
fulfilment of deadlines, the range of products, the price-quality level and the range of
customised products and services. Security and privacy policies were measured with
a six-item scale referring to the security provided by the company regarding data
protection, information provided about security and the existence of reliable data
transmission mechanisms. Web site warranty was measured with two indicators:
warranty against failure and refund warranty. Interactivity was gathered under two
indicators showing the effort of the web site to promote interactivity and to create an
experience similar to the physical shop. To measure the web site design (a three-item
scale), the respondents were asked to evaluate the ease of using the web site and its
design.
As for company characteristics, reputation was measured using two items and,
finally, the bricks-and-mortar experience was measured using a dichotomic scale
(yes/no).
For satisfaction, trust and risk perception, reflective scales were used. Satisfaction
was measured using a six-item scale based on Oliver’s (1980) proposal and adapted to
online purchasing using as a reference Montoya-Weiss et al. (2003), Bennett et al. (2005)
and Harris and Goode (2004). Trust was measured by means of an eight-item scale
based on the Ganesan (1994) and Doney and Cannon (1997) scales, adapted to an online
context following the proposals of Harris and Goode (2004) and Roy et al. (2001).
Finally, risk perception was measured following the scales proposed by Stone and
Gronhaug (1993), Laroche et al. (2005) and Cunningham et al. (2005), as they gather the
five traditional dimensions of risk perception: functional, financial, physical, social and
psychological risk (Jacoby and Kaplan, 1972). Nevertheless, we only measured
functional, financial and physical risk as they are the most relevant dimensions in the
context of online buying.
These scales were subjected to a confirmative factor analysis (CFA), the results of
which are shown in the Table II. After removing some items, the convergent validity of
these scales was confirmed. Although the chi-square statistic was significant –
conceivably as a result of the size of the sample – the lambda values and the remaining
goodness-of-fit indicators supported the convergent validity of these scales. After
validating the convergence of the scales, the correlation matrix of the factors resulting
from each scale was calculated (see Table III). In all cases the extracted variance of
each variable (see Table II) exceeded the value of its squared correlation with the other
variables, which justified the discriminant validity of the scales (Anderson and
Gerbing, 1988).

Results of the model estimation

The following step of the analysis was to estimate the effect of the firm and web site
characteristics on satisfaction and trust, and the moderating effect of risk perception.
 B&M Quality of Security and Design of web
Reputation experiencea service Warranty privacy Interactivity site Trust Satisfaction

Reputation 1.000
B&M experiencea 0.253 1.000
Quality of service 0.490 0.123 1.000
Warranty 0.237 0.136 0.355 1.000
Security and
privacy 0.426 0.181 0.581 0.376 1.000
Interactivity 0.233 0.168 0.380 0.353 0.317 1.000
Design of web site 0.389 0.113 0.519 0.273 0.505 0.304 1.000
Trust 0.426 0.155 0.612 0.362 0.609 0.299 0.422 1.000
Satisfaction 0.400 0.168 0.548 0.305 0.504 0.227 0.431 0.708 1.000
a
Note: B&M experience=bricks-and-mortar experience

Correlation matrix
Online buying

Table III.
643
OIR Although some authors have put forward perceived risk of a web site as a mediating
33,4 variable between web site characteristics and trust (Teo and Liu, 2007), there is no
consensus about risk being mediating, moderating or formed independently of trust
(Gefen et al., 2002). In our opinion, there can be differences in the proposed model
according to the perception of more or less risk on the part of the consumer (Roy et al.,
2001; Mayer et al., 1995; Kong and Hung, 2006). Therefore, in our model we analysed
644 the way in which the perceived risk in the channel moderates the effect of each signal
on satisfaction and trust.
A multi-group analysis was performed. For the formative scales (web site attributes
and firm characteristics), an index was created from the indicators. In the case of risk
perception, the scale was dichotomised: high risk perception for the values higher than
the mean and low risk perception for the values lower than the mean. After eliminating
central values, we obtained two groups: individuals who perceived high risk in online
buying (241) and individuals who perceived low risk (239). Table IV shows the results
of the multi-group path analysis with different coefficients. Multi-group analysis
allows comparison of the same model with two different samples, but with a unique set
of goodness-of-fit indexes, and in this way allowed the evaluation of the moderating
effect of risk in this model. Multi-group analysis is performed by comparing the
chi-square of the two sub-samples and calculating an overall chi-square difference. In
this case, a model that imposed equality constraints parameters across the sub-groups
was compared with the general non-restricted model. Regarding the general
moderating effect of risk, the totally restricted model had to be compared with the
model with different coefficients in each group to obtain the chi-square difference (x2)
(Mackinnon et al., 2002). In order to test the differences across groups in more detail,
each path was tested one at a time, comparing the restricted model (the structural
parameter fixed) with the non-restricted model. Significant differences across groups
for each coefficient were indicated.

Group 1. High risk Group 2. Low risk

Satisfaction Trust Satisfaction Trust

Quality of service 0.228 0.301* 0.317 0.130*

Warranty 0.029 0.067 0.070 0.067
Security and privacy 0.411* 0.000* 0.051* 0.141*
Interactivity 20.058 — 2 0.015 —
Design of web site 0.149 — 0.241 —
Reputation — 0.180* — 2 0.001*
B&M experience — 0.137* — 0.016*
Satisfaction — 0.089* — 0.595*
R2 0.382 0.368 0.304 0.503
Contribution to x2 ¼ 11.38 Contribution to x2 ¼ 17.38
Group goodness of fit (39.56%) (60.43%)
RMR ¼ 0.025 RMR ¼ 0.031
GFI ¼ 0.989 GFI ¼ 0.985
x2(10) ¼ 28.767 (P ¼ 0.001); CFI ¼ 0.992; RMSEA ¼ 0.080;
Table IV. Goodness of fit NFI ¼ 0.987
Multigroup analysis –
different coefficients Notes: * Significant differences between groups (high and low risk); the significant values (.95%)
between groups are italicized
In comparing the chi-squared value of the model of identical coefficients Online buying
(x2(21) ¼ 93.102 (P ¼ 0.000); CFI ¼ 0.967; RMSEA ¼ 0.113; NFI ¼ 0.959) and the
model with different coefficients (x2(10) ¼ 28.767), we verified that the chi-squared
value diminished significantly (x2(11) ¼ 64.335). Therefore, the general hypothesis of
the moderating effect of the perception of risk was supported.
A more detailed comparison of Group 1 (high risk perception) and Group 2 (low risk
perception) implied support for H1. The firm’s reputation and bricks-and-mortar 645
experience have a significant effect on trust in the case of high risk perception, whereas
they are not significant when buyers perceive low risk in online commerce.
As for the effect of cognitive signals on satisfaction and trust, the results partially
supported H2 and H3. Although we found a “slight” significant effect of warranty on
trust when we considered both samples, this effect was not significant when we
differentiated between high and low risk groups. Warranty seems not to have a
relevant influence on either the satisfaction or the trust of online buyers. The quality of
the service and the security and privacy policies have a distinct effect on satisfaction
and trust. The quality of the service has a positive influence on consumer satisfaction,
although we did not find significant differences between low and high-risk perception
groups. However, the security and privacy policies have a high and significant impact
on the satisfaction of buyers that perceive high risk, while the effect is not significant in
the case of buyers that perceive low risk. Therefore, H2 was partially validated.
According to H3, buyers who perceive high risk demonstrate a greater confidence in
the quality of the service as a signal to trust than buyers who perceive low risk.
However, and contrary to our proposal, according to our findings buyers who perceive
less risk when buying online demonstrate a greater confidence on the security and
privacy policies as a signal of trust.
H4 was not confirmed since the effect of experiential signals on satisfaction is more
or less the same in both groups of risk: the design of the web site engenders satisfaction
in both more and less risk-averse buyers, and interactivity does not have any
significant effect in either group of risk perception.
With regard to H5, the results confirmed that satisfaction with previous experiences
does not influence consumers’ trust in the web site when they perceive high risk in
e-commerce, whereas the effect of satisfaction on trust is high and significant when
they perceive low risk. Therefore H5 was supported.
To sum up, the quality of the service is the only web site attribute considered by
individuals who perceive high risk as a signal to trust. For individuals who perceive
low risk, trust is determined firstly by satisfaction with previous purchase experiences,
and secondly by the quality of the service and the security and privacy policies. While
the former build trust only on the basis of elements outside the online experience
(reputation, bricks-and-mortar experience and quality of the service), the latter build
trust on the basis of their own experience. Hence, risk-averse shoppers are willing to
analyse and compare different sources of information (firm and web site signals) before
trusting the web site and more confident shoppers rely more on their own experiences
(satisfaction).

Discussion
In a buying situation, consumers face an adverse selection problem deriving from the
firm having more information about products or services. This information asymmetry
OIR in an online context can be reduced if the online vendor sends signals to potential
33,4 online buyers. According to models that explain user acceptance of technologies, such
as the TAM, these signals may involve higher perceived usability and ease of use,
which in turn will generate or enhance consumer trust and satisfaction when buying
online.
More concretely, the model proposed here reflects the existence of factors that
646 directly generate trust and other factors that have an indirect influence through the
satisfaction the user may have experienced in previous transactions. On the basis of
this initial premise and independently of the level of perceived risk, this study shows
that some characteristics of online retailers – especially the quality of the service
provided and to a lesser extent, the warranty and bricks-and-mortar experience – have
a more direct influence on trust, while the design of the web site and the security and
privacy policies indirectly influence trust through customer satisfaction. Of all these
variables, it is undoubtedly satisfaction with the previous purchase experience and the
quality of the service that are the main determinants of trust, which reinforces the
findings of previous studies (Ribbink et al., 2004; Park and Stoel, 2005).
With regard to determinants of satisfaction, again the quality of service is a key
factor in achieving online satisfaction. However, the design of the web site and the
security and privacy policies are antecedents of satisfaction, and therefore are factors
that indirectly determine buyer online trust. A surprising result is the lack of effect of
interactivity on trust. It may be that consumers associate interactivity with face-to-face
exchanges, which is missing in an online context. In fact, in an online context it is
difficult to get an experience of shopping similar to the one produced in an offline
context, as Pitta et al. (2006) have suggested. This implies that attempts by firms to
increase and improve interactivity on their web sites will not be particularly
appreciated by consumers.
Moreover, our study has empirically tested the moderating role of perceived risk in
online buying. Notwithstanding the previous general results and taking into account
the level of perceived risk and the corresponding groups, the results confirm that
buyers who perceive high risk when buying online (e.g. waste of money, time and
effort) make decisions in a different way to buyers who perceive less risk. First,
individuals who perceive more risk only trust a web site if they perceive that the firm
behind the web site has a good reputation in the market and has offline experience, and
if the quality of the service provided is high (e.g. there is a wide range of products,
quality-price relation and customisation of service). Contrary to expectations,
satisfaction with previous exchanges does not engender these consumers’ trust,
although the quality of the service, the security and privacy policies and the design of
the web site can generate their satisfaction.
Second, it seems that previous satisfaction is the most important reason for
individuals who are less risk-averse when shopping online to trust the web site. If this
type of buyer has experienced satisfaction with a certain web site, he or she will trust it
quite apart from the firm’s reputation and bricks-and-mortar experience. Their
satisfaction derives from a good quality of the service and the design of the web site,
and not from the security and privacy policies (which engender their trust).
The effect of warranty on trust when considering the total sample is very limited
and becomes non-significant when considering the two groups of buyers according to
their levels of perceived risk. Similarly, Wang et al. (2004) could not find a significant
effect between the return policy and trust. Finally, results suggest that buyers who Online buying
perceive less risk have higher expertise and knowledge of e-commerce and do not
consider security and privacy policies as an element that engenders their satisfaction
(augmented product), but as part of the expected service when they buy online
(expected product).

647
Limitations of the study and possibilities for future research
It should be mentioned that different web sites were considered in this research, which
implies heterogeneity in results (Ribbink et al., 2004). Moreover, the influence of culture
was not considered because the sample consisted of Spanish people.
Firm and web site characteristics were measured from consumer perceptions, and
not by means of objective indicators. For instance, bricks-and-mortar experience could
have been measured according to how long the firm had been operating offline.
From the results future lines of research may emerge. The lack of effect of
interactivity and warranty suggest the analysis of trust in relation to the product
acquired. A differential analysis for the case of products or services, or in relation to the
consumer’s implication in the purchase of the product may provide alternative
shopping contexts in which these signals may influence consumer trust. It would be
suitable to analyse the moderating effect of buyer traits and experience in the
relationship between firm and web site characteristics, satisfaction and trust. In
addition, the proposed model could be improved with the inclusion of other relevant
variables such as loyalty, novelty seeking or word-of-mouth effect. In this sense, apart
from the risk deriving from shopping on the internet, the risk linked to the type of
product or service bought and the risk regarding the type of seller could be considered.
Additionally, it would be interesting to contemplate the relation between the level of
perceived risk and consumer proneness to innovations because individuals who
perceive less risk when buying online are probably more innovative and better adapted
to new technologies than individuals who perceive more risk when buying online.
Another possibility is to design a model that explains the best strategies to achieve
consumer loyalty, satisfaction and trust in offline and online contexts and to provide
recommendations regarding the possibility of complementing offline and online
marketing strategies. Although there are certain attitudes and behaviours, such as
trust and satisfaction, that can be transferred from an offline context to an online
context, some authors have found relevant differences between both contexts (Shankar
et al., 2003) and others consider that there is a risk of translating offline strategies to an
online environment (Vrechopoulos et al., 2004). It would also be interesting to compare
buying and selling on the internet with buying and selling through the mobile phone
because it offers high prospects for buying and selling.
Other directions for further research could involve including other countries in the
study to make a comparison of different cultures, since this is an important variable to
be taken into account (Barnes et al., 2007; Young, 2006). Finally, another interesting
issue is the kinds of product bought. The most popular goods for Spanish online
shoppers are travel tickets, books and show tickets, whereas other products such as
groceries are less frequently bought online (AECEM, 2007).
OIR Conclusion
33,4 As with an offline context, it is important to engender consumer trust and satisfaction
(two key variables in relationship marketing literature) in online contexts. In online
buying and selling, the creation of trust is fundamental to achieving a greater
development of e-commerce and finally the purchaser’s loyalty. It may not be ignored
that in an online context it is more difficult to retain customers due to the existence of a
648 large number of alternatives (online stores compete not only with other online stores,
but also with physical stores), and to the lack of trust and the high risk perceived,
which may inhibit electronic purchase. For this reason, aspects such as service and
web site quality, as well as satisfaction with previous results, may be decisive in
reducing the risk a consumer perceives in an online context and to gain his or her trust.
The main goal of the study reported here was the analysis of the effects of firm and
web site characteristics on satisfaction and trust according to the buyer’s level of
perceived risk. In this sense two types of individuals have been outlined:
(1) buyers who perceive high risk when buying online; and
(2) buyers who perceive low risk.

This paper involves a significant advance in the literature on trust and satisfaction in
an online context. This study empirically considered several signals that electronic
retailers send to the market in order to create buyer trust and satisfaction, while most
studies on signals have been theoretical and normative (Nelson, 1974; Emons, 1988;
Biswas and Biswas, 2004) or have not contemplated so many signals simultaneously
(Lazarinis, 2007; Rao et al., 1999). Our research has also deepened understanding of the
process of generation of customer trust in online contexts for different types of users
according to their level of perceived risk. To the best of our knowledge, there has been
no research that has analysed the moderating effect of risk on the relations between
firm and web site signals and buyer trust and satisfaction.
The findings suggest that, although satisfaction with previous encounters and
results is the main antecedent of online trust, online vendors can also engender
consumers’ trust by offering a service of high quality and product warranties, fulfilling
their security and privacy promises, and maintaining a well-designed and appealing
web site. Therefore, online vendors should make the biggest effort in providing
existing online buyers with a satisfactory service that increases their trust in the firm
and in its web site. The results indicate that for firms operating online, more important
than their reputation or offline experience is achieving what Dawson et al. (2003)
named “client total experience” in an online environment purchase. Experience in the
electronic context is tied not only to web site design, but also to data privacy, security
in payment, the quality of the offer and delivery of products and services, customer
service before and after buying, and relationship with the customers.
However, the perception of this experience depends on the type of buyer. In order to
win the trust of the most risk-averse buyers, the firm should reinforce the central or
objective attributes of the web site, but specially the firm reputation and offline
experience. The experience of this type of buyers in an online context is linked to the
systems that ensure payment security, to the quality of the offer and product delivery,
to the ex-ante and ex-post customer service. Internet users who buy online more
frequently are more likely to trust the web site based only on the satisfaction they
obtained in previous interactions, whereas users who perceive more risk in online
buying need to perceive that the firm has a good reputation and bricks-and-mortar Online buying
experience apart from other signals such as a good quality of the service.

References
AECEM (2007), Estudio sobre comercio electrónico B2C 2006, Spanish Association of Electronic
Commerce, available at: http://observatorio.red.es/estudios/comercio/
649
Agarwal, R. and Venkatesh, V. (2002), “Assessing a firm’s web presence: a heuristic evaluation
procedure for the measurement of usability”, Information Systems Research, Vol. 13 No. 2,
pp. 168-86.
Ahn, T., Ryu, S. and Han, I. (2004), “The impact of the online and offline features on the user
acceptance of internet shopping malls”, Electronic Commerce Research and Applications,
Vol. 3, pp. 405-20.
Anderson, E. and Weitz, B. (1992), “The use of pledges to build and sustain commitment in
distribution channels”, Journal of Marketing Research, Vol. 29, pp. 8-34.
Anderson, J.C. and Gerbing, D.W. (1988), “Structural equation modeling in practice: a review and
recommended two-step approach”, Psychological Bulletin, Vol. 103 No. 3, pp. 411-23.
Anderson, R.E. and Srinivasan, S.S. (2003), “E-satisfaction and e-loyalty: a contingency
framework”, Psychology & Marketing, Vol. 20, pp. 123-38.
Bagwell, K. and Ramey, G. (1988), “Advertising and limit pricing”, RAND Journal of Economics,
Vol. 19, pp. 59-71.
Barnes, S.J., Bauer, H.H., Neumann, M.M. and Huber, F. (2007), “Segmenting cyberspace: a
customer typology for the internet”, European Journal of Marketing, Vol. 41 Nos 1/2,
pp. 71-93.
Bart, Y., Shankar, V., Sultan, F. and Urban, G.L. (2005), “Are the drivers and role of on-line trust
the same for all web sites and consumers? A large-scale exploratory empirical study”,
Journal of Marketing, Vol. 69, pp. 133-53.
Belanger, F., Hiller, J.S. and Smith, W.J. (2002), “Trustworthiness in electronic commerce: the role
of privacy, security, and site attributes”, The Journal of Strategic Information Systems,
Vol. 11, pp. 45-270.
Bennett, R., Härtel, C.E.J. and McColl-Kenenedy, J.R. (2005), “Experience as a moderator of
involvement and satisfaction on brand loyalty in a business-to-business setting 02-314R”,
Industrial Marketing Management, Vol. 34, pp. 97-107.
Biswas, D. and Biswas, A. (2004), “The diagnostic role of signals in the context of perceived risks
in online shopping: do signals matter more on the web?”, Journal of Interactive Marketing,
Vol. 18, pp. 30-45.
Bramall, C., Schoefer, K. and McKechnie, S. (2004), “The determinants and consequences of
consumer trust in e-retailing: a conceptual framework”, Irish Marketing Review, Vol. 17,
pp. 3-22.
Burke, R.R. (2002), “Technology and the customer interface: what consumers want in the
physical and virtual store”, Journal of the Academy of Marketing Science, Vol. 30,
pp. 411-32.
Chau, P.Y.K., Hu, P.J.H., Lee, B.L.P. and Au, A.K.K. (2007), “Examining customers’ trust in online
vendors and their dropout decisions: an empirical study”, Electronic Commerce Research
and Applications, Vol. 6 No. 2, pp. 171-82.
OIR Cheng, S.J. and Chang, T.Z. (2003), “A descriptive model of online shopping process: some
empirical results”, International Journal of Service Industry Management, Vol. 14,
33,4 pp. 556-69.
Corbitt, B.J., Thanasankit, T. and Yi, H. (2003), “Trust and e-commerce: a study of consumer
perceptions”, Electronic Commerce and Research Applications, Vol. 2 No. 3, pp. 203-15.
Cunningham, L.F., Gerlach, J.H., Harper, M.D. and Young, C.E. (2005), “Perceived risk and the
650 consumer buying process: internet airline reservations”, International Journal of Service
Industry Marketing, Vol. 16 No. 4, pp. 357-72.
Cunningham, S.M. (1967), “The major dimensions of perceived risk”, in Cox, D.F. (Ed.), Risk
Taking And Information Handling in Consumer Behaviour, Harvard University Press,
Boston, MA, pp. 82-108.
Davis, F.D. (1989), “Perceived usefulness, perceived ease of use, and user acceptance of
information technology”, MIS Quarterly, Vol. 13 No. 1, pp. 319-40.
Davis, F.D., Bagozzi, R.P. and Warshaw, P.R. (1989), “User acceptance of computer technology: a
comparison of two theoretical models”, Management Science, Vol. 35 No. 8, pp. 982-1003.
Davis, R., Buchanan-Oliver, M. and Brodie, R.J. (2000), “Retail service branding in
electronic-commerce environments”, Journal of Service Research, Vol. 3, pp. 178-86.
Dawson, L., Minocha, S. and Petre, M. (2003), “Exploring the total customer experience in
e-commerce environments”, Proceedings of the IADIS International Conference e-Society,
pp. 945-048.
Doney, P.M. and Cannon, J.P. (1997), “An examination of the nature of trust in buyer-seller
relationships”, Journal of Marketing, Vol. 61, pp. 35-51.
Doolin, B., Dillon, S., Thompson, F. and Corner, J.L. (2005), “Perceived risk, the internet shopping
experience and online purchasing behaviour: a New Zealand perspective”, Journal of
Global Information Management, Vol. 13 No. 2, pp. 66-88.
Emons, W. (1988), “Warranties, moral hazard, and the lemons problem”, Journal of Economic
Theory, Vol. 46, pp. 6-33.
Feinberg, R. and Kadam, R. (2002), “E-CRM web service attributes as determinants of customer
satisfaction with retail web sites”, International Journal of Service Industry Management,
Vol. 13, pp. 432-51.
Fiore, S.G. (2002), “Designing on-line experience through consideration of the salient sensory
attributes of products”, MPhil Thesis, University of Manchester Institute of Science and
Technology, Manchester.
Ganesan, S. (1994), “Determinants of long-term orientation in buyer-seller relationships”, Journal
of Marketing, Vol. 58 No. 2, pp. 1-19.
Gefen, D. (2000), “E-commerce – the role of familiarity and trust”, The International Journal of
Management Science, Vol. 28, pp. 725-37.
Gefen, D., Karahanna, E. and Straub, D.W. (2003), “Trust and TAM in online shopping: an
integrated model”, MIS Quarterly, Vol. 27 No. 1, pp. 51-90.
Gefen, D., Rao, V.S. and Tractinsky, N. (2002), “The conceptualization of trust, risk and their
relationship in electronic commerce. The need for clarifications”, Proceedings of the 36th
Hawaii International Conference on System Sciences (HICSS’ 03), Big Island, HI, 92-201.
Gummerus, J., Liljander, V., Pura, M. and Van Riel, A. (2004), “Customer loyalty to content-based
web sites: the case of an online health-care service”, Journal of Services Marketing, Vol. 18,
pp. 175-86.
Ha, H.-Y. (2004), “Factors influencing consumer perceptions of brand trust online”, Journal of Online buying
Product and Brand Management, Vol. 13 No. 5, pp. 329-42.
Ha, S. and Stoel, L. (2008), “Consumer e-shopping acceptance: antecedents in a technology
acceptance model”, Journal of Business Research, Vol. 62 No. 5, pp. 565-71.
Harris, L.C. and Goode, M.M.H. (2004), “The four levels of loyalty and the pivotal role of trust: a
study of on-line service dynamics”, Journal of Retailing, Vol. 80, pp. 139-58.
Hawes, J.M. and Lumpkin, J.R. (1986), “Perceived risk and the selection of a retail patronage 651
mode”, Journal of Academy of Marketing Science, Vol. 14, pp. 37-42.
Hong, S.J., Thong, J.Y.L. and Tam, K.Y. (2006), “Understanding continued information
technology usage behaviour: a comparison of three models in the context of mobile
internet”, Decision Support Systems, Vol. 42, pp. 1819-34.
Hu, J., Shima, K., Oehlmann, R., Zhao, J., Takemura, Y. and Matsumoto, K. (2004), “An empirical
study of audience impressions of B2C web pages in Japan, China and the UK”, Electronic
Commerce Research and Applications, Vol. 3 No. 2, pp. 176-89.
Jacoby, J. and Kaplan, L. (1972), “The components of perceived risk”, Proceedings of the 3th
Annual Conference of the Association for Consumer Research, Ann Arbor, MI, pp. 382-393.
Kong, W.C. and Hung, Y.T. (2006), “Modeling initial and repeat online trust in B2C e-commerce”,
Proceedings of the 39th Hawaii International Conference on System Sciences, IEEE
Computer Society, Washington, DC, 06, p. 120.2.
Laroche, M., Yang, Z., McDougall, G.H.G. and Bergeron, J. (2005), “Internet versus
bricks-and-mortar retailers: an investigation into intangibility and its consequences”,
Journal of Retailing, Vol. 81 No. 4, pp. 251-67.
Lau, G.T. and Lee, S.H. (1999), “Consumers’ trust in a brand and the link to brand loyalty”,
Journal of Market-Focused Management, Vol. 4, pp. 341-70.
Lazarinis, F. (2007), “Evaluating the searching capabilities of e-commerce web sites in a
non-English language: a Greek case study”, Online Information Review, Vol. 31 No. 6,
pp. 881-91.
Lee, E.J. and Overby, J.W. (2004), “Creating value for online shoppers: implications for
satisfaction and loyalty”, Journal of Consumer Satisfaction and Complaining Behavior,
Vol. 17, pp. 54-67.
Lee, G.G. and Lin, H.F. (2005), “Customer perceptions of e-service quality in online shopping”,
International Journal of Retail & Distribution Management, Vol. 33, pp. 161-76.
López-Nicolás, C. and Molina-Castillo, F.J. (2008), “Customer knowledge management and
e-commerce: the role of customer perceived risk”, International Journal of Information
Management, Vol. 28 No. 2, pp. 102-13.
Mackinnon, D.P., Lockwood, C.M., Hoffman, J.M., West, S.G. and Sheets, V. (2002), “A
comparison of methods to test mediation and other intervening variable effects”,
Psychological Methods, Vol. 7 No. 1, pp. 83-104.
Mayer, R.C., Davis, H.C. and Schoorman, F.D. (1995), “An integrative model of organizational
trust”, Academy of Management Review, Vol. 20, pp. 709-34.
Montoya-Weiss, M.M., Voss, G.B. and Grewal, D. (2003), “Determinants of online channel use and
overall satisfaction with a relational, multichannel service provider”, Journal of the
Academy of Marketing Science, Vol. 31, pp. 448-58.
Morgan, R. and Hunt, S. (1994), “The commitment-trust theory of relationship marketing”,
Journal of Marketing, Vol. 58, July, pp. 20-38.
Nelson, P. (1974), “Advertising as information”, Journal of Political Economy, Vol. 82, pp. 729-54.
OIR O’Cass, A. and Fenech, T. (2003), “Web retailing adoption: exploring the nature of internet users
web retailing behaviour”, Journal of Retailing and Consumer Services, Vol. 10, pp. 81-94.
33,4
Oliver, R.L. (1980), “A cognitive model of the antecedents and consequences of satisfaction
decisions”, Journal of Marketing Research, Vol. 17, November, pp. 460-9.
Park, C.H. and Kim, Y.G. (2006), “The effect of information satisfaction and relational benefit on
consumers’ online shopping site commitments”, Journal of Electronic Commerce in
652 Organizations, Vol. 4, pp. 70-90.
Park, J. and Stoel, L. (2005), “Effect of brand familiarity experience and information on online
apparel purchase”, International Journal of Retail & Distribution Management, Vol. 33,
pp. 148-60.
Pavlou, P.A. (2003), “Consumer acceptance of electronic commerce – integrating trust and risk
with the technology acceptance model”, International Journal of Electronic Commerce,
Vol. 7 No. 3, pp. 69-103.
Petty, R.E., Cacioppo, J.T. and Schumann, D. (1983), “Central and peripherical routes to
advertising effectiveness: the moderating role of involvement”, Journal of Consumer
Research, Vol. 10, pp. 135-46.
Pitta, D., Franzak, F. and Fowler, D. (2006), “A strategic approach to building on-line customer
loyalty: integrating customer profitability tiers”, Journal of Consumer Marketing, Vol. 23
No. 7, pp. 421-9.
Ranaweera, C., McDougall, G. and Bansal, H. (2005), “A model of online customer behavior
during the initial transaction: moderating effects of customer characteristics”, Marketing
Theory, Vol. 5 No. 1, pp. 51-74.
Rao, A.R., Qu, L. and Ruekert, R.W. (1999), “Signaling unobservable product quality through a
brand ally”, Journal of Marketing Research, Vol. 36, May, pp. 258-68.
Ravald, A. and Grönroos, C. (1996), “The value concept and relationship marketing”, European
Journal of Marketing, Vol. 30 No. 2, pp. 9-30.
Ray, I. and Zhang, H. (2008), “Experiences in developing a fair-exchange e-commerce protocol
using common off-the-shelf components”, Electronic Commerce Research and Applications,
Vol. 7 No. 2, pp. 247-59.
Ribbink, D., Van Riel, A.C.R., Liljander, V. and Streukens, S. (2004), “Comfort your online
customer: quality, trust, royalty on the Internet”, Managing Service Quality, Vol. 14,
pp. 446-56.
Rodgers, W., Negash, S. and Suk, K. (2005), “The moderating effect of on-line experience on the
antecedents and consequences of on-line satisfaction”, Psychology and Marketing, Vol. 22,
pp. 313-31.
Roy, M., Dewit, O. and Aubert, B. (2001), “The impact of interface usability on trust in web
retailers”, Internet Research, Vol. 11 No. 5, pp. 388-98.
Salam, A., Iyer, L., Palvia, P. and Singh, R. (2005), “Trust in e-commerce”, Communications of the
ACM, Vol. 48 No. 2, pp. 72-7.
Salo, J. and Karjaluoto, H. (2007), “A conceptual model of trust in the online environment”, Online
Information Review, Vol. 31 No. 5, pp. 604-21.
Selnes, F. (1998), “Antecedents and consequences of trust and satisfaction in buyer-seller
relationships”, European Journal of Marketing, Vol. 32 Nos 3/4, pp. 305-22.
Shankar, V., Smith, A. and Rangaswamy, A. (2003), “Customer satisfaction and loyalty in online
and offline environments”, International Journal of Research in Marketing, Vol. 20,
pp. 153-75.
Singh, J. and Sirdeshmukh, D. (2000), “Agency and trust mechanisms in consumer satisfaction Online buying
and loyalty judgments”, Journal of the Academy of Marketing Science, Vol. 28 No. 1,
pp. 150-67.
Singh, M. (2002), “E-services and their role in B2C e-commerce”, Managing Service Quality,
Vol. 12, pp. 434-46.
Stone, R.N. and Gronhaug, K. (1993), “Perceived risk: further considerations for the marketing
discipline”, European Journal of Marketing, Vol. 27 No. 3, pp. 39-50. 653
Tan, S.J. (1999), “Strategies for reducing consumers’ risk aversion in internet shopping”, Journal
of Consumer Marketing, Vol. 16 No. 2, pp. 163-80.
Teas, R.K. and Agarwal, S. (2000), “The effects of extrinsic product cues on consumers’
perceptions of quality, sacrifice, and value”, Journal of the Academy of Marketing Science,
Vol. 28, pp. 278-90.
Teo, T.S.H. and Liu, J. (2007), “Customer trust in e-commerce in United States, Singapore and
China”, Omega, Vol. 35 No. 1, pp. 22-38.
Trocchia, P.J. and Janda, S. (2003), “How do consumers evaluate internet retail service quality?”,
Journal of Services Marketing, Vol. 17, pp. 243-53.
Van den Poel, D. and Leunis, J. (1999), “Consumer acceptance of the internet as a channel of
distribution”, Journal of Business Research, Vol. 45 No. 3, pp. 249-56.
Vrechopoulos, A.P., O’Keefe, R.M., Doukidis, G.I. and Siomkos, G.J. (2004), “Virtual store layout:
an experimental comparison in the context of grocery retail”, Journal of Retailing, Vol. 80,
pp. 3-22.
Wang, H.C., Pallister, J.G. and Foxall, G.R. (2006), “Innovativeness and involvement as
determinants of web site loyalty: II. Determinants of consumer loyalty in B2C
e-commerce”, Technovation, Vol. 26, pp. 1366-73.
Wang, S., Beatty, S.E. and Foxx, W. (2004), “Signaling the trustworthiness of small online
retailers”, Journal of Interactive Marketing, Vol. 18 No. 1, pp. 53-69.
Ward, M.R. and Lee, M.J. (2000), “Internet shopping, consumer search and product branding”,
Journal of Product and Brand Management, Vol. 9 No. 1, pp. 6-20.
Wolfinbarger, M. and Gilly, M.C. (2001), “Shopping online for freedom, control and fun”,
California Management Review, Vol. 43, pp. 34-55.
Wolfinbarger, M. and Gilly, M.C. (2003), “E-TailQ: dimensionalizing, measuring and predicting
retail quality”, Journal of Retailing, Vol. 79, pp. 183-98.
Yadav, M.S. and Varadarajan, R. (2005), “Understanding product migration to the electronic
marketplace: a conceptual framework”, Journal of Retailing, Vol. 81, pp. 125-40.
Yoon, S.J. (2002), “The antecedents and consequences of trust in on-line purchase decisions”,
Journal of Interactive Marketing, Vol. 12 No. 2, pp. 47-63.
Young, L. (2006), “Trust: looking forward and back”, Journal of Business & Industrial Marketing,
Vol. 21 No. 7, pp. 439-45.
Yousafzai, S.Y., Pallister, J.G. and Foxall, G.R. (2005), “Strategies for building and
communicating trust in electronic banking: a field experiment”, Psychology &
Marketing, Vol. 22, pp. 181-201.
Zeithalm, V., Parasuraman, A. and Malhotra, A. (2000), “Service quality delivery through web
sites: a critical review of extant knowledge”, Journal of the Academy of Marketing Science,
Vol. 30 No. 4, pp. 362-75.
Zhou, M., Dresner, M. and Windle, R.J. (2008), “Online reputation systems: design and strategic
practices”, Decision Support Systems, Vol. 44 No. 4, pp. 785-97.
OIR Further reading
33,4 Curran, K. and Michelle, C. (2006), “Expressing emotion in electronic mail”, Kybernetes, Vol. 36
No. 5, pp. 616-31.
Li, H., Daugherty, T. and Biocca, F. (2001), “Characteristics of virtual experience in electronic
commerce: a protocol analysis”, Journal of Interactive Marketing, Vol. 15 No. 3, pp. 3-30.
Porter, C.E. and Donthu, N. (2006), “Using the technology acceptance model to explain how
654 attitudes determine internet usage: the role of perceived access barriers and
demographics”, Journal of Business Research, Vol. 59, pp. 999-1007.
Szymanski, D.M. and Hise, R.T. (2000), “E-satisfaction: an initial examination”, Journal of
Retailing, Vol. 76 No. 3, pp. 309-22.
Vijayasarathy, L.R. and Jones, J.M. (2001), “Do internet shopping aids make a difference? An
empirical investigation”, Electronic Markets, Vol. 11, pp. 75-83.

About the authors

Sonia San Martı́n holds a PhD in Economics and lectures in marketing at the University of
Burgos, Spain. Her main areas of research are relationship marketing and consumer behaviour.
She has presented papers on the subject at various conferences, published articles in several
national and international journals and is also the author of a book on relationship marketing.
Sonia San Martı́n is the corresponding author and can be contacted at: sanmargu@ubu.es
Carmen Camarero is Associate Professor at the University of Valladolid (Spain). Her research,
which focuses on business relationships and consumer relationship marketing, has been
published in several national and international journals. At present, her main research interests
are related to relationship marketing and consumer behaviour. She has written two books and
several book chapters.

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

Or visit our web site for further details: www.emeraldinsight.com/reprints