Does e-retailer's country of origin influence consumer privacy, trust and purchase intention?

Abstract

Purpose Consumers are worried about sharing their sensitive information during online shopping due to the e-tailer’s unethical practices and hacking-related concerns. Prior research has established the country of origin (COO) as a trust-building cue; however, it requires empirical testing in the online retailing context. The present study aims to examine the e-tailer COO’s effect on consumer privacy, trust and purchase intention. Design/methodology/approach An online survey floated a seven-point Likert scale questionnaire and invited the receivers to participate in the investigation over e-mails and text messages. A total of 355 usable responses were analyzed using R programming. Findings This study empirically validated a proposed conceptual model examining the influence of COO on consumer privacy, trust and purchase intention. The findings suggest that COO influences consumer privacy, trust and purchase intention. This study further found that the privacy practices of online retailers positively impact consumer trust. Trust acts as a mediating factor in influencing purchase intention. Practical implications This study offers valuable insights for advancing the research agenda and actionable inputs to e-commerce managers for alleviating consumer privacy concerns in emerging economies. Future researchers can test the proposed model in other demographic and e-commerce settings. Originality/value This study contributes to the present knowledge on consumer privacy in online retailing in the Indian context. This paper also examines the relationship of COO with consumer privacy, trust and purchase intention, an underexplored research area in emerging markets.