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POD Mode of Payment, Return Policies and Virtual-Try-on Technology as Predictors of Trust: An Emerging Economy Case

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Abstract This study examines virtual-try-on technology (VTO), return policy, and pay-on-delivery (POD) mode of payment as predictors of trust in an online context. The study further investigates trust as an… Click to show full abstract

Abstract This study examines virtual-try-on technology (VTO), return policy, and pay-on-delivery (POD) mode of payment as predictors of trust in an online context. The study further investigates trust as an influencer of repurchase intentions while positing habit as a moderator of the relationship between trust and repurchase intention. Data was collected through a self-administered and structured questionnaire targeting online shoppers in North Indian states. A sample of 424 online shoppers was considered in this research. Structural Equation Modeling (SEM) was used to evaluate the constructs. CFA was applied to calculate validity and composite reliability. To examine the hypothesized relationships, path analysis was carried out. The results confirmed that both return policies and POD are significant predictors of trust. Interestingly, VTO has no significant effect on trust, while habit strengthens the positive relationship between trust and repurchase intentions.

Keywords: predictors trust; try technology; pod mode; mode payment; virtual try; return policies

Journal Title: Journal of Promotion Management
Year Published: 2021

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