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Consumer behavior: effect of brand trust on the relationship between consumer's perceived risk and intention to buy in the online shopping
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The digital era disrupted many activities that have for centuries acted one way. With the introduction of internet business, a new paradigm of shopping experience and consumer behavior has emerged. As the online environment entails many possibilities for fraud, when engaging in online transactions, consumers are apprehensive to ascertain whether the online seller is trustworthy or not before the purchase. This study intends to test how two major types of online perceived risks, financial and privacy risks, make an impact upon the consumers’ online intention to buy and, to test whether the level of brand trust influences this relationship – in the context of consumer electronic products in Portugal. This research employed an empirical study using a questionnaire method to verify the hypothesis. Data were obtained from 173 consumers with previous online shopping experience. Results of the study indicate there’s a significant influence of perceived risk on Portuguese consumers’ intention to buy electronic products online. Although the present study has proved that brand trust does not have a moderate effect in the relation between the risk perceived by consumers and the intention to buy online, there was a significant difference between online shoppers’ perceived risk concerning different brands with different levels of trust. Further on, implications and limitations are discussed in this paper and, recommendations for future research are provided
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consumer behavior perceived risk intention to buy online brand trust