Which is more important in Internet shopping, perceived price or trust?

Price and trust are considered to be two important factors that influence customer purchasing decisions in Internet shopping. This paper examines the relative influence they have on online purchasing decisions for both potential and repeat customers. The knowledge of their relative impacts and changes in their relative roles over customer transaction experience is useful in developing customized sales strategies to target different groups of customers. The results of this study revealed that perceived trust exerted a stronger effect than perceived price on purchase intentions for both potential and repeat customers of an online store. The results also revealed that perceived price exerted a stronger influence on purchase decisions of repeat customers as compared to that of potential customers. Perceived trust exerted a stronger influence on purchase decisions of potential customers as compared to that of repeat customers.

► We examine relative influence of price and trust on customers purchase decisions. ► We have examined this influence for both potential and repeat customers. ► Perceived trust influences purchase decision more strongly than perceived price. ► Perceived price has a stronger influence on purchase decision of repeat customers. ► Perceive trust has a stronger influence on purchase decision of potential customers.