Boosting online purchase intention in high-uncertainty-avoidance societies: A signaling theory approach

• Published in: Journal of open innovation Vol. 8; no. 3; pp. 1 - 20
• Main Authors: Al-Adwan, Ahmad Samed, Alrousan, Mohammad Kasem, Yaseen, Husam, Alkufahy, Amer Muflih, Alsoud, Malek
• Format: Journal Article
• Language: English
• Published: Basel MDPI 01-09-2022; Elsevier Ltd; Elsevier Limited; Elsevier
• Subjects: Avoidance; cash on delivery; customer trust; Customers; Developing countries; Electronic commerce; Emerging markets; Empirical analysis; Internet; LDCs; online shopping; Perceptions; Purchasing; Retail stores; return policy; Signaling; signaling theory; Small & medium sized enterprises-SME; Uncertainty; uncertainty avoidance; cash on delivery; online shopping; return policy; uncertainty avoidance; customer trust; signaling theory
• ISSN: 2199-8531; 2199-8531
• DOI: 10.3390/joitmc8030136

Despite the fact that online purchase intention has been widely investigated, little is known about the e-retailer-based signals used to reduce online customers' uncertainty perception in high-uncertainty-avoidance (UA) societies. Thus, based on signaling and uncertainty literature, this study investigates return policy leniency (RPL), cash on delivery (COD), and social commerce constructs (SCCs) as the costly signals e-retailers use to increase perceived trust and reduce perceived purchase uncertainty among customers in high-UA societies. An analysis of empirical data from 560 e-commerce users from Jordan reveals that RPL, COD, and SCCs are key enablers of customer trust. Furthermore, customer trust is positively associated with customer purchase intention. The implications for both theory and practice are highlighted.