Risk, trust, and consumer online purchasing behaviour: a Chilean perspective

Purpose - The purpose of this study is to investigate Chilean consumers' online purchase behaviour with a specific focus on the influence of perceived risk and trust. Studies of this nature have been conducted quite extensively in developed countries and in cross-cultural comparative studies most noticeably comparing the USA with Asian countries. However, examining consumers' perceived risk and trust with online purchasing in a Latin American context is very limited. While not a cross-cultural study, this gap is addressed in the literature with an empirical study conducted in Chile. Moreover, it aims to address calls to investigate consumers' post adoption acceptance of a technology to gain insights into which factors are most influential in explaining continuance behaviour. Design/methodology/approach - The paper tests a model of the influence perceptions of risk and trust on consumers' attitudes and intentions to continue purchasing on the internet. An online survey method is used. The sample consists of 176 Chilean consumers who purchase online. The data were analysed using structural equation modelling (SEM). Findings - The analysis reveals that perceived risk online had an inverse relationship with consumers' attitude and that attitude has a positive influence on intentions to continue purchasing. Of the trust factors examined, trust in third party assurances and a cultural environment of trust have the strongest positive influence on intentions to continue purchasing online, whereas trust in online vendors and a propensity to trust were both insignificant. Practical implications - In a Latin American context, for marketers in domestic and global companies these results identify which trust beliefs have the most effect on consumer continuance behaviour towards purchasing online. Additionally, this research shows that consumers in a Latin American country, recognized as a collectivist, high risk avoidance culture, are willing to continue making purchases online despite the risks involved. Originality/value - The study and its results is one of few available that investigates consumers' perceptions of risk and trust for online purchasing in a Latin American country. The value of the findings provides an insight into the specific trust factors that influence post adoption behaviour; that is Chilean consumers' continued purchasing online. The findings add value not only to the literature on the Latin American population's e-commerce behaviour, but also have managerial implications for domestic and global companies considering offering online retailing for consumers in this region where internet penetration rates are very high, but local e-commerce availability is low.