Competitive price and trust as determinants of purchase intention in social commerce

Abstract

The evolution of Web 2.0 technologies and social media has changed the way online business is conducted. With increasingly popular social networks, the connections among Internet users emerge as an important source of information, allowing consumers to share their ideas, opinions, or even content on the web, in order to find better and cheaper products, originating a new type of electronic commerce, known as social commerce (s-commerce). In this context, price and trust stand out as two important factors influencing the decision to buy online. Thus, we aimed to analyze the effects of trust and competitive price on the purchase intention of Brazilian consumers in s-commerce. Through a survey conducted with 160 online consumers, we identified trust as the main predictor of consumer purchase intention in s-commerce followed by competitive prices. We also indicated a set of important antecedents of trust in the context of s-commerce. The study contributes to the literature surrounding the effects of competitive price and trust — and its antecedents — as important factors that influence the intention to buy in s-commerce, providing managers with some key elements they can use to improve their firm’s competitiveness in this new business environment.

Keywords

• social commerce
• price
• trust
• social media
• purchasing intention