Role of Trust on Perceived Store Characteristics and Consumer Behavioural Outcome in the Context of Online Social Media Marketing

Abstract

Social media marketing is the latest effective tool for disseminating marketing related information, increasing consumer awareness and providing a perception of the size, reputation and ease of transaction associated with online stores. Consumers' trust in online stores is influenced by messages delivered by the companies themselves as well as own social media contacts. This research paper explores four store characteristics which may lead to trust and, in turn, facilitate formation of willingness to purchase, electronic word of mouth and social capital in consumer's social networks,. A conceptual model is proposed and tested empirically with partial least square. It finds that awareness and absence of risk significantly influence development of trust. Social capital and electronic word of mouth (e- WOM) are most influenced by trust, while there is least effect of trust on willingness to purchase..