The Influence of Perceived Effective Sanctions on Customer Initial Trust in an Online Vendor
Wong Chiet Bing1, Khalil Md Nor.2

1Wong Chiet Bing, Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru, Malaysia.
2Khalil Md Nor, Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru, Malaysia.
Manuscript received on 28 June 2019 | Revised Manuscript received on 11 July 2019 | Manuscript Published on 17 July 2019 | PP: 537-542 | Volume-8 Issue-2S July 2019 | Retrieval Number: B10820782S19/2019©BEIESP
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Abstract: With no knowledge about an unfamiliar online vendor and prior to conducting transaction with the vendor, customers will depend on whatever information is available to them in deciding whether the vendor is trustworthy in overcoming their uncertainty feelings. Moreover, customers may also perform a cost and benefit analysis to put a situation where the other party may cheat or cooperate in the relationship. An effective sanction, that is, the perception that they have the ability to impose punishment on the vendor if the vendor does not fulfill his or her promises, can aid in developing the customers’ initial trust on the vendor. This paper is aimed to examine the effect of perceived effective sanctions on trusting beliefs and trusting intention on an unfamiliar online vendor. This study proposes that a strong perception of effective of imposing sanctions on an unfamiliar online vendor may lead to customers’ trustworthiness perception of the vendor and subsequently, their tendency to rely on the vendor. This paper also proposes the methodology to validate the research model. The study’s contribution and limitation end this paper.
Keywords: Perceived Effective Sanctions; Initial Trust; Trusting Beliefs; Trusting Intention.
Scope of the Article: Social Sciences