Exploring Customer Trust and Online Continuance Shopping Intention of Cosmetics, with Mediating Effect of Perceived Risk

Abstract

Purpose This study aims to explore the relationship between customer trust, perceived risk, and online continuance shopping intention in the cosmetics industry. It focuses on understanding the direct impact of customer trust on shopping intention and the mediating role of perceived risk. The research provides insights to help marketers and policymakers enhance consumer trust and mitigate perceived risks in online shopping.   Theoretical Framework This study's theoretical framework is based on the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB). It extends these models by including customer trust and perceived risk as key factors influencing online continuance shopping intention in the cosmetics industry.   Methodology The study employs a Partial Least Squares (PLS) approach for Structural Equation Modelling (SEM) to analyze the relationships between customer trust, perceived risk, and online continuance shopping intention.   Findings The study reveals that customer trust significantly boosts online continuance shopping intention, encouraging repeat purchases. Perceived risk partially mediates this relationship, meaning while trust reduces perceived risk, the presence of risk still negatively impacts the intention to continue shopping online. The path coefficients quantify these relationships, highlighting the strength and significance of both direct and indirect effects.   Implication For marketers and policymakers in the online cosmetics industry, the study suggests that building customer trust through transparent communication, reliable service, and secure payments is crucial for fostering repeat purchases. Additionally, reducing perceived risks with clear return policies, product guarantees, and data protection measures can alleviate customer concerns.