Investigating the Nonlinear and Conditional Effects of Trust on Effective Customer Retention --The Role of Institutional Contexts

H Zou, I Qureshi, Yulin Fang, K Lim, H Sun, Elaine Ramsey, P McCole

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


Transacting online, customers may concern about risks regarding the vendors and the general online environment. Trust and institutional contexts are thus in place to address such concerns. The IS literature has long studied trust’s effects on customers’ shopping intention. To make better use of vendors’ limited resources in trust building, recent studies shed light on narrowing down trust’s operational boundary for a more effective range.Integrating the findings on the nonlinear and conditional effects of trust, this study aims at understanding the complex moderating effects of institutional contexts on the relationship between trust and repurchase intention. Drawing on prospect theory, we hypothesize that customers will perceive the effectiveness of institutional contexts in mitigating risks in two distinct conditions (perceived effective and perceived ineffective) and hence exhibit different repurchase patterns.Our findings reveal an inverted U-shaped nonlinear relationship between trust and repurchase intention in perceived effective contexts and a U-shaped nonlinear in perceived ineffective contexts using survey data collected from online customers in the United Kingdom. Implications for vendors’ effective trust cultivation in two conditions are accordingly provided.
Original languageEnglish
Title of host publicationUnknown Host Publication
PublisherAustralasian Conference on Information Systems
Number of pages10
Publication statusAccepted/In press - 26 Jul 2016
EventAustralasian Conference on Information Systems - Wollongong, Australia
Duration: 26 Jul 2016 → …


ConferenceAustralasian Conference on Information Systems
Period26/07/16 → …


  • Trust
  • repurchase intention
  • nonlinear relationship
  • e-commerce
  • m-commerce
  • mobile banking
  • prospect theory
  • institutional contexts
  • institutional mechanisms


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