The Effect of Trust and Perceived Risk on Consumers' Online Purchase Intention

Abstract

With the rapid growth of e-commerce in Taiwan, B2C domain of e-commerce has been the significant issue recently. According to the importance to understand and predict consumers’ online purchase intention. Based on the Technology Acceptance Model (TAM), this study aims to predict the consumers’ purchase intention by integrating trust and perceived risk into the model to empirically examine the impacts of key drivers. With 705 samples obtained from users of Yahoo! Kimo online vendor, this study applied the Structural Equation Model (SEM) to examine the proposed model. The results indicate that perceived ease of use (PEOU) and perceived usefulness (PU), trust, as well as perceived risk, significantly impact purchase intention. Moreover, trust significantly reduced perceived risk.

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