Trust Violation in Electronic Commerce: Customer Concerns and Reactions

The positive relationship between trust and purchase-related variables (such as willingness to buy) has been widely reported in literature. By implication, it is sometimes suggested that violation of trust will lead to negative consequences. However, there is a dearth of empirical support for the consequences of trust violation. In the current study, we examine a research model that proposes that the three characteristics of a trust violation (magnitude of negative outcome, causal attribution to seller, and perceived fairness of seller response) will influence psychological contract violation (PCV), which will affect customer trust (both affect-based and cognition-based trust) and which, in turn, will influence customer repurchase intentions with the offending seller, customer intentions to engage in negative word of mouth communication, and, customer intention to continue purchases on the Internet. The results indicate significant support for the research model. The theoretical and practical implications of the results are discussed.