Which is more important in Internet shopping, perceived price or trust?

1567-4223/$ see front matter 2011 Elsevier B.V. A doi:10.1016/j.elerap.2011.06.003 ⇑ Corresponding author. Tel.: +82 10 8976 4410. E-mail addresses: [email protected] (H.-W. K (Y. Xu), [email protected] (S. Gupta). 1 Tel.: +86 21 2501 1198. 2 Tel.: +91 788 2291621. 3 There are two types of products: search product experience product (i.e., high touch product) (Klein 19 those where there is great variation is product qua luxurious items, and apparels. Search products are th quality does not vary across stores. For example, bo quality and therefore their quality is standard do not v store. Price and trust are considered to be two important factors that influence customer purchasing decisions in Internet shopping. This paper examines the relative influence they have on online purchasing decisions for both potential and repeat customers. The knowledge of their relative impacts and changes in their relative roles over customer transaction experience is useful in developing customized sales strategies to target different groups of customers. The results of this study revealed that perceived trust exerted a stronger effect than perceived price on purchase intentions for both potential and repeat customers of an online store. The results also revealed that perceived price exerted a stronger influence on purchase decisions of repeat customers as compared to that of potential customers. Perceived trust exerted a stronger influence on purchase decisions of potential customers as compared to that of repeat customers. 2011 Elsevier B.V. All rights reserved.