Customer trust and retention in online shopping in Ho Chi Minh City

Abstract:

This study aims to explore the factors influencing customer trust and retention in online shopping, drawing upon the Uses and Gratifications Theory. Additionally, it examines the mediating role of trust in this relationship. The research employs the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze data collected from 300 customers who have engaged in online shopping at least three times in the past six months. The findings reveal that reliability and perceived ease of use impact trust and customer retention, whereas website design does not exhibit a significant effect on trust and customer retention. Furthermore, trust functions as a mediating variable in the relationship between reliability, perceived ease of use, and customer retention. Based on these findings, the study offers several recommendations for businesses to strengthen customer trust and retention by enhancing reliability and perceived ease of use in online shopping platforms.