Online purchase intention of personal luxury goods : the mediating role of trust

Abstract

Online purchase decisions are heavily influenced by consumer trust, especially when it comes to personal luxury goods. This study addresses common issues that consumers have when thinking about making these kinds of purchases, such as concerns regarding authenticity, information asymmetry, and a lack of luxury experience. These challenges collectively contribute to a more profound concern, which is the erosion of trust among consumers to purchase such goods online. Existing research proposes using signalling theory to better understand consumer decision-making when presented with risks related to online purchases. However, this theory, in isolation, proves insufficient for addressing the broader issue of consumer trust. To address this gap, this study takes an innovative approach by integrating Signalling theory into the stimulus-organism-response (S-O-R) model. By combining these theories, the study aims to provide a more holistic and comprehensive understanding of how consumers navigate online purchase decisions for personal luxury goods. The integration of Signalling theory and the S-O-R model has allowed for the investigation of both cognitive and emotional aspects of consumers' decision-making processes when purchasing personal luxury goods online. The main objective of the study is to comprehensively analyse the influence of four marketing signals, namely brand reputation, online reviews, money-back guarantee, and site aesthetics, on consumer trust and online purchase intention of personal luxury goods. The research was conducted quantitatively, where questionnaires adapted from previous research were used to conduct an online survey. Purposive sampling was used to draw insights from 214 consumers in Malaysia who either purchased or intended to purchase personal luxury goods from official luxury brand websites, third-party platforms, and social commerce platforms. SPSS and AMOS were used to analyse the data. The findings reveal that brand reputation, online reviews, money-back guarantee, and site aesthetics significantly influence consumer trust in purchasing personal luxury goods online. On the other hand, all marketing signals exhibit non-significant direct influences on online purchase intention. Mediation analysis demonstrates that consumer trust fully mediates the influence of brand reputation, money-back guarantee, and site aesthetics on online purchase intention. Meanwhile, consumer trust partially mediates the influence of online reviews on online purchase intention. This study emphasises the critical role of trust in enhancing consumers' online purchase intentions for personal luxury goods. Marketers are advised to prioritise trust-building strategies, focusing on cultivating strong brand reputations, transparent communication, and commitments to quality. Besides, incorporating customer review sections on online platforms is recommended, given their influence on consumer trust. Furthermore, new local luxury businesses are encouraged to implement credible and reliable money-back guarantee services to instil trust among consumers. In addition, luxury marketers should also invest in visually appealing online platforms to reinforce consumer trust in purchasing personal luxury goods online. Future research can fill the gaps in the study by validating the model using a qualitative study or conducting a quantitative study with a larger sample size.