DISCUSSION AND IMPLICATIONS 1 Discussion 1

The effects of internet shoppers’ trust on their purchasing intention in china 281 supported. [Table 5] Results of the Hypotheses Tests From H1 to H5 Model R 2 adj. R 2 F Standardized coefficient ȕ Tolerance Results 1 Trust TRU TRU = ECK+REP+RISK+PEOU+errors ECK E-commerce Knowledge REP Perceived Reputation RISK Perceived Risk PEOU Perceived Ease of Use 0.415 0.402 32.222 0.301 0.125 -0.093 0.203 0.730 0.701 0.855 0.663 H-1 was supported H-2 was not supported H-3 was supported H-4 was supported 2 PI Purchasing Intention PI = TRU+errors TRU Trust 0.370 0.367 108.708 0.608 1.000 H-5 was supported p 0.05, p 0.01 5. DISCUSSION AND IMPLICATIONS 5.1 Discussion This study has found that trust has a strong significant relationship with purchasing intention. In other words, greater consumer trust motivates customers generate more intention to purchase in the Internet shopping mall. We also confirmed that trust should be built first if a Chinese e-vendor wants to improve its Web site’s competence. While a few previous studies have proposed e-commerce knowledge as an important trust-building factor for Internet shopping malls, this study found it as a key antecedent of trust. This finding makes sense because of the fact that in China, unlike in Korea or in other advanced economies, only a fraction of the Internet users have a clear idea about the e-shopping method and processes involved to make them have strong trust on an Internet shopping mall. Other Chinese Internet users probably doubt an e- shopping Web site due to lack of e-commerce knowledge. In other words, the amount of e-commerce knowledge directly influences Chinese consumers’ judgments on an Internet shopping mall’s trustworthiness. On the other hand, in some developed e- markets such as Korea, U.S.A, and Japan, almost every Internet user has some amount of e-commerce knowledge, so few studies treat e-commerce knowledge as a research variable in trust context. In addition, we found that perceived reputation does not have a statistically significant relationship with trust while e-commerce knowledge, perceived risk, and PEOU do. It is probably because several largest Internet shopping malls have occupied Vol.4, No. 3, 2007, p. 269-286 p p p 0.0 .0 .05, 5 p 0. 01 01 Model R R 2 ad ad ad j j j. R 2 F F F coefficient ȕ Tolerance Results 1 Trust TRU TRU = ECK+REP+RISK SK SK +P EOU+ + +e er er ro ro o rs rs rs ECK E-comm m merce Knowledg dg dg e e e REP Perce e e i iv ived Rep p p ut ut ut at at at io i i n RISK Pe e erceived Ri Ri Ri sk sk sk PEOU P Perceive ve ved d d Ea Ea Ea se of f f U Us Us e e 0. 415 0. 0. 0.40 40 40 2 2 2 32 32 32 .2 .2 .2 22 22 22 0. 0. 0. 30 30 30 1 0. 12 1 1 5 -0.093 0. 20 20 20 3 3 3 0.73 73 730 0.701 1 1 0. 855 0. 0. 0.66 6 6 3 H-1 was supported H-2 was not supported H-3 was su su supported H- 4 4 4 was supp p por o ted 2 P PI Pur ur r ch ch cha as a in g In In Intention PI I I = TR U+ U+ U+ errors s T T T RU Tr Tr Trus us ust t t 0. 0.370 0.367 7 1 108.708 0.608 1. 1. 00 H H H -5 wa a as su u u pp pp pp orte e ed 5. 5. . DIS S S CU C C SS S S ION AND IMPLICAT TIO I NS N 5. 5.

5. 1

1 Discus si si si o on on This study has found that tr t t us us us t t t ha a s s s a a a strong significant relationship wi wi with th th pu u urc rc rc ha ha hasi s s ng intention. In other words, gr r r ea ea ea ter consumer trust motivates cus s s to to tome me me r r rs gene ne ne ra a ate te m m m ore intention to purchase in the Internet shopping mall. We also c c c on on onfi fi firm m rm e ed that t t t t tru ru ru st st st s s ho h ul ul ul d d d be be be b b b ui ui ui lt lt lt f f f i i i rs r rs t t if if f a a a Chinese e-vendo o r r r wa w wa nt nt t s s s to to to i i i mp mp mp ro ro ro ve ve ve i i i t t ts W W W eb eb eb s s sit it ite’s comp p pet et eten en ence e e . Wh Wh Whil il il e e e a a a fe fe fe w w w pr pr pr e e evio

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me me merc rc rce e e kn kn ow ow ow le le ledg dg dge e e as an important tr tr tr us us us t- b b bu i i ildi di ng ng ng f f factor for Inte rn rn rn et shopp pp pping malls, thi hi i s s s st st st ud u u y y f f foun un n d d d i it it as a key antecedent of trust. This finding makes s s sense be e c ca c use of the fact that in China, unlike in Korea or in other advanced economies s s, only a fra ac ac tion of the Internet users have a clear idea about the e-shopping method and nd nd processes s s involved to make them have strong trust on an Internet shopping mall. Ot t h he h r Chine es ese Internet users probably doubt an e- shopping Web site due to lack of e-comm m merce k k n n nowledge. In other words, the amount of e-commerce knowledge directly influen n nces Chinese consumers’ judgments on an Internet shopping mall’s trustworthiness. O O O n n the other hand, in some developed e- markets such as Korea, U.S.A, and Japan, a a l lmost every Internet user has some amount Li, Rong. Kim, JaeJon, Park, JaeSung 282 most of China’s C2C and B2C markets Tabao.com, Ebay.com.cn, Paipai.com, Dangdang.com, and Joyo.com that a majority of e-consumers purchase products only through these big Web sites. As a consequence, it makes it difficult for consumers to identify whether there are any distinct effects on trust caused by reputation or not. Furthermore, we came to understand by the demographic statistics above that most respondents were customers with prior e-shopping experience repeat customers. According to Kim et al. 2004, reputation usually has a weaker effect on repeat customers’ trust than on potential new customers. Regarding perceived risk, like many other prior research efforts, we also found it to be significant to trust. Uncertainty of the purchasing process, perception of little guarantee on quality and after sales services, wariness about the privacy issue, etc. still remain as obstacles in the relationships between consumers and Internet shopping malls in China. Finally, PEOU is found to play another key role on the generation of trust. When consumers view an Internet shopping mall as a Web site providing quick search, a convenient purchasing process Shin et al., 2001, speedy access and concise payment Li et al., 2005, they will probably trust this Internet shopping mall and intend to purchase in that Web site.

5.2 Implications