The Influence of Perceived Relative Advantage on Customers’ Initial Trust Towards Unfamiliar Online Store Retailer

Abstract

Objective - Creating an independent online store presents businesses with an opportunity to cultivate their brand and devoted customer base. To achieve long-term success, it is crucial to build a new customer base and establish initial trust. Prior research has explored various aspects of initial trust and identified factors crucial for businesses in devising strategies to attract customers. However, while some studies have investigated the impact of perceived relative advantage on initial trust, the findings remain inconclusive, leaving unexplored facets. This study aimed to scrutinize how perceived relative advantage influences customers' initial beliefs and intentions to trust an unfamiliar online store retailer. Methodology/Technique - Data gathered from a survey underwent statistical analysis using Structural Equation Modeling (SEM). Findings – The results revealed that perceived relative advantage significantly and positively impacted both initial trusting beliefs and intention. This research contributes to comprehending the relationship between initial trust and perceived relative advantage, especially in an underexamined context in Malaysia. Novelty - The study developed and validated a research model that extends the Theory of Reasoned Action (TRA) by incorporating perceived relative advantage as a key antecedent to initial trust. In practical terms, it provides valuable guidance for new online store retailers in formulating strategies to establish trust with their initial consumers, and brand-new online store retailers in conceiving strategies for establishing initial consumer trust. Type of Paper: Empirical JEL Classification: M15, M10 Keywords: Trust; Initial Trust; Perceived Relative Advantage; Trusting Beliefs; Trusting Intention, E-Commerce Reference to this paper should be made as follows: Wong, C. B.; Tan, S.; Tan, K. E. (2024). The Influence of Perceived Relative Advantage on Customer’s Initial Trust towards Unfamiliar Online Store Retailer, J. Mgt. Mkt. Review, 9(2), 66 – 75. https://doi.org/10.35609/jmmr.2024.9.2(2)