Factors That Influence Online Brand Trust (Case Study Lazada Indonesia)

The growth of internet user in Indonesia has created large opportunity for business to market or sell their products online. As the technology advances and getting cheaper, more people will be connected to the internet. Indonesia seemingly holds a promising future for online retailer. However, several researches suggested that issues concerning trust is holding back the growth of online retails. This research was aimed to determine customers’ perception towards lazada as an online retail and to determine the factors influencing online brand trust of lazada by respondents in Jabodetabek and Bandung. There are six dimensions used in this research to measure the customer trust toward the lazada brand. The dimensions are security and privacy, perceived risk, word of mouth, online experience, quality of information, and brand reputation. The data were collected using convenience sampling by presenting the respondents with the questionnaire and let them choose, to fill or not to fill at any time or condition they feel convenient. There were 400 respondents involved in this research. The questionnaire consists of 27 items. The analysis methods are by means of descriptive and multiple regression analysis. This study found that the customers’ perception toward lazada is good and all of the six dimensions are significantly influencing trust toward the lazada brand. Every variable is positively influencing brand trust except for perceived risk. Lazada should focus on perceived risk and make some improvements, because the customers feel that shopping in lazada poses some threatening risks