Elucidating drivers of repurchase intention in the e-marketplace through the lens of online trust-building mechanisms

Abstract

Indonesia has low e-commerce transactions despite high internet usage. This study examines the e-repurchase intention on Lazada Indonesia, an e-marketplace with declining traffic and sales. This study uses the perceived usefulness of institutional-based mechanisms, the perceived usefulness of seller-based mechanisms, and the perceived usefulness of experience-based mechanisms to examine how trust in the e-market and e-seller affect repurchase intention. This quantitative study includes 231 Lazada Indonesia customers from the past three months (the survey was conducted in January 2023). The data were statistically analyzed with partial least squares structural equation modeling (PLS-SEM). 43.72% of the respondents shop one to three times a month, 42.42% – more than three times per month, and 13.85 – less than once per month. Trust in the e-marketplace increased when participants believed institutional-based processes were beneficial (with a beta value of 0.272 and a P value of 0.000) and seller-based mechanisms were valuable (with a beta value of 0.509 and a P value of 0.000). In terms of trust in the e-seller, only the perceived usefulness of seller-based mechanisms has a significant effect (with a beta value of 0.567 and a P value of 0.000), while the perceived usefulness of experience-based mechanisms has no effect. This study has also shown that e-seller trust significantly affects repurchase intention. Finally, with a beta value of -0.055 and a P value of 0.046, e-marketplace trust negatively moderates the relationship between e-seller trust and repurchase intention. Thus, e-marketplace trust can replace e-seller trust in customer repurchase intentions. AcknowledgmentThis study is conducted with the support of Universitas Multimedia Nusantara.