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In this study, we identified the factors that influence consumer purchasing intentions and their perceptions of the trustworthiness of the privacy-related practices of e-commerce websites. We produced a list of website attributes that represent these factors in a series of focus groups. Then we constructed and validated a research model from an online survey of 117 adult participants. We found that security, privacy (including awareness, information collection, and control), and reputation (including company background and consumer reviews) have a strong effect on trust and willingness to purchase, while website quality plays only a marginal role. Although the perception of trustworthiness and purchasing intention were positively correlated, in some cases participants were more willing to buy from a website that they judged as untrustworthy with regard to privacy. We investigated how behavioral biases and decision-making heuristics may explain the discrepancy between perception and behavioral intention. Finally, we determined which website attributes and individual characteristics impact customer’s trust and willingness to buy.

Factors Influencing the Perception of Website Privacy Trustworthiness and Users' Purchasing Intentions: The Behavioral Economics Perspective