Perceived Trust and Payment Methods: An Empirical Study of MarkaVIP Company

Abstract

This empirical study focused on\rinvestigating the perceived trust surrogated by a number of hy-pothesized\rfactors and its effect on the choice of method of payment. The data were\rcollected using a questionnaire, as the instrument for the primary data\rcollection, with total collected back responses of 214 from customers of\rMarkaVIP. Structural equation modeling technique was used to fully analyze the\rdata in order to determine what level of the relationship between the\rconstituting factors of the perceived trust and the method of payment. The main\rfindings were related to confirming the seven main hypotheses of the research\rthat were related to testing if some factors were important to forming\rperceived trust by customers. Four factors (reputation, security, familiarity,\rand ease of use) were found to have a positive effect and the remaining three\rwere not (privacy, size and usefulness). In addition, having perceived trust\rmeant no preference to any method of payment by the customers.