The Effects of Website and Brand Reputations on Consumer Responses in Pure-play Online Retailing
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Multi-channel retailing has been a common retail format for many retailers, but the number of pure-play (Internet only) online retailers is growing rapidly. However, pure-play online retailers face challenges in terms of building trust due to the absence of physical stores and lack of reputation with online shoppers. The purpose of this study is to examine how consumers perceive quality from the website and brand reputations for pure-play online retailers. This study also examines the effects of perceived quality on online trust and purchase intent. The design of the study is two factors [website reputation (high vs. low); brand reputation (well-known vs. unknown)] between-subjects design. A sample of 142 college students participated in this online experiment. Hypotheses were tested using MANOVA and regression analyses. Website reputation was found to be most important in influencing consumers’ perceived quality. The results also reveal that website reputation and brand reputation interact to affect consumers’ perceived quality. For the low reputation website, consumer perceptions of the quality were higher when a well-known brand was presented, but for the high reputation website, consumer quality perceptions are high regardless of the brand reputation. Overall, the findings provide empirical support for the signaling theory and contribute useful knowledge for pure-play online retailers.
Abstract
Multi-channel retailing has been a common retail format for many retailers, but the number of pure-play (Internet only) online retailers is growing rapidly. However, pure-play online retailers face challenges in terms of building trust due to the absence of physical stores and lack of reputation with online shoppers. The purpose of this study is to examine how consumers perceive quality from the website and brand reputations for pure-play online retailers. This study also examines the effects of perceived quality on online trust and purchase intent. The design of the study is two factors [website reputation (high vs. low); brand reputation (well-known vs. unknown)] between-subjects design. A sample of 142 college students participated in this online experiment. Hypotheses were tested using MANOVA and regression analyses. Website reputation was found to be most important in influencing consumers’ perceived quality. The results also reveal that website reputation and brand reputation interact to affect consumers’ perceived quality. For the low reputation website, consumer perceptions of the quality were higher when a well-known brand was presented, but for the high reputation website, consumer quality perceptions are high regardless of the brand reputation. Overall, the findings provide empirical support for the signaling theory and contribute useful knowledge for pure-play online retailers.
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