Information Management and Business Review (ISSN 2220-3796)

Vol. 16, No. 1, pp. 261-271, SI(1) 2024

Trust, Social Influence and Perceived Usefulness: Examining Online Purchase Intentions among Gen Z

1Nur`ain
Achim*, 1Dayana Batrisya Mohamed, 1Sonia Crystal Miji, 1Nasir Nur Alliyah Zuraini,
1Muhammad Iqmal Ridhwan Idil, 1AbbyJane Luntek Hilmen, 2Azu Farhana Anuar
1Faculty of Business and Management, University of Technology MARA, Malaysia
2Student Development Section, Universiti Kuala Lumpur MICET, Malaysia

ainachim@[Link]*, dayanabatrisyaa16@[Link], soniacrystalmiji02@[Link], nralliyah@[Link],

iqmalridhwan07@[Link], abbyhillmen@[Link], azufarhana@[Link]

Abstract: The growing popularity of online shopping collides with user reservations related to trust, social
influence, and perceived purchase usefulness, with such concerns acutely observable among Gen Z populations.
As digital natives and prolific online users, Gen Z's purchasing patterns offer valuable insights for marketers
adjusting their online strategies. This study extends the body of knowledge by examining the determinants of
online purchase intentions among Gen Z thereby guiding university administrators, educators, and online
retailers in crafting improved online shopping experiences. Utilizing a non-intrusive, naturalistic research
setting, the study harnesses an anonymous survey methodology, and data is rigorously analyzed using
Statistical Package for Social Science (SPSS). Findings indicate that trust and perceived usefulness are
significantly connected to students' online purchasing decisions. This study enhances the theory of online
buying habits by emphasizing trust and value in e-commerce. It advises adding trust cues and functional
benefits to online portals, the key to influencing Gen Z buyers and boosting market expansion and e-shopper
satisfaction.

Keywords: Online purchasing intention, trust, social influence, perceived usefulness, Gen Z

1. Introduction and Background

Online purchases have increased in popularity in recent years, completely changing how people look for goods
and services. Gen Z, who are early adopters of technology and actively participate in online activities, is the
group among whom this tendency is most noticeable (Pending, 2023). To effectively target this group and
adjust their online marketing tactics, firms and marketers must have a thorough understanding of the elements
that influence Gen Z’s online purchasing behavior.

While a significant amount of research has been conducted on purchasing behavior, little focus has been placed
particularly on the variables influencing online buying among Gen Z (Ozen & Engizek, 2014). Previous research
that has been conducted by Ahmed et al. (2018) has mostly focused on the general or particular age groups,
ignoring specific characteristics and preferences of Gen Z as internet users. As a result, research into the specific
factors influencing students’ decisions to make online purchases is necessary. Several studies have examined
the variables impacting online shopping intention in various contexts. Online shopping decisions are influenced
by several important factors including trust, perceived usefulness, and social influence.

2. Literature Review

Online purchase intention: Intention defined by Akhbar et al. (2014), reflects people’s conscious attempt to
rationalize their actions and is a driving factor behind the behavior. Specifically, purchase intention refers to
an individual's desire to acquire a specific product or service, particularly in the realm of e-commerce, where
the preference for online shopping has grown due to factors such as increased digitization and convenience
(Time Trade, 2017). This transformation is reflected in the reduction of physical store patronage and the rise
of online shoppers (Chang et al., 2016). Consumer perceptions and attitudes determine purchase intention,
which is critical in brand selection (Mirabi et al., 2015; Shah et al., 2012). Furthermore, the COVID-19 epidemic
has accelerated the transition to online shopping, driven by concerns about in-store limitations and supply
shortages (Nguyen et al., 2020; Zwanka & Buff, 2020). Gallego et al. (2016) found that online merchants'
trustworthiness and ethical conduct had a substantial influence on purchase intention, emphasizing the need
for firms to prioritize ethical issues to preserve consumer confidence and reduce turnover.

Trust: Trust plays a pivotal role in the consumer decision-making process, whether shopping online or in a

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physical store, as Goddu (2021) points out. But in the online world, trust works a bit differently. Instead of
trusting a person directly, we rely on trusting the website itself because we are interacting through technology.
If we do not trust the website, it's like not trusting the store in the real world; we probably won't buy anything.
When we shop online, trust becomes crucial because we worry about risks like our financial info getting stolen
or the product not being what we expected (Bach et al., 2020).

Rahimnia and Hassanzadeh (2013) describe trust as a feeling we get even when we are not sure about
something. Trust is a big deal in online shopping research because it helps us feel more comfortable and surer
about what we are buying. When there is a lot of uncertainty online, trust becomes even more important
because it helps us feel safer (Soleimani, 2021). Trust is an emotional response that affects how we judge things
and what decisions we make. So, when we’re shopping online, we’re thinking about whether we trust the online
community and if they're being honest with us.

When we're online shopping, we have to trust that our private info, like our payment details, will be kept safe.
Trust is a big challenge for online businesses, and it can make or break their success. Sometimes, people do not
shop online simply because they do not trust the websites (Hongsuchon et al., 2022). Trust is super important
for us shoppers because it helps us feel confident about our decisions when we're buying online
(Krishnamurthy & Kucuk, 2009). Researchers like Lui et al. (2005) and Kuan & Bock (2007) have found that
trust is closely linked to whether we intend to buy something online. So, when we trust a website, we're more
likely to buy from it. From the above arguments, this study proposes the following hypothesis:
H1: There is a relationship between trust and online purchase intention.

Social Influence: Social influence is a big deal when it comes to how people behave and make decisions, as
explained by Myers & Twenge (2019). It means that we are often influenced by the people around us when we
decide what to buy or how to act. Marketers know this and try to use social influence to get us to make
unplanned purchases.

Social influence can take different shapes. At times, our beliefs or behaviors might shift to align with what we
observe others doing (Ratner and Kahn, 2002). For instance, if we see our friends using a particular product,
we might want to try it too. Social influence can happen without us even realizing it, unlike persuasion, which
is more intentional and requires awareness. Businesses use various strategies to tap into social influence to
encourage us to buy more, like making us feel indebted or showing us that other people are buying the same
thing (Van Den Bulte & Stremersch, 2004).

In addition, social influence occurs in several forms, potentially leading us to adapt our views and actions based
on the observed behavior of others, as explained by Mcleod et. al (2022). Conformity is when we change our
beliefs or behaviors to fit in with what most people are doing. Obedience is when we follow orders from
someone in authority, and compliance is when we agree to something because we feel pressured. Minority
influence is when a small group manages to change the opinion of a much larger group, which can happen if the
minority group behaves in certain ways. So, social influence is all about how we're influenced by others,
whether we realize it or not, and it can affect what we buy and how we behave. Based on the above discourse,
this study hypothesizes the following:
H2: There is a relationship between social influence and online purchase intention.

Perceived usefulness: Perceived usefulness, as defined by Worthington (2021), refers to how much someone
believes that using a particular system or technology will improve their performance or help them achieve their
goals. In the context of social media and online shopping, it is about whether users think that using a specific
platform or website will help them accomplish what they want, such as making purchases. A past study by
Slamet et al. (2022) has found a positive connection between perceived usefulness and online purchase
intention. This means that when people believe that using online platforms will enhance their shopping
experience or make things easier for them, they are more likely to intend to make purchases online.

Furthermore, the younger people's perceptions, as highlighted by Edward et al. (2021), play a significant role
in shaping their attitudes towards technology and online shopping. For younger generations, perceived
usefulness strongly influences their intentions to buy online. Studies by Nasidi et al. (2021) and Lim et al.

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(2021) also emphasize the importance of perceived usefulness in consumers' acceptance of online stores and
banking services. This suggests that when consumers believe that online shopping offers value and improves
their shopping routines, they are more likely to embrace e-commerce and intend to shop online.

Research by Nguyen (2020), Oentario, Harianto, & Irawati (2017), and Rahmiati & Yuannita (2019) further
confirms the positive impact of perceived usefulness on online shopping attitudes and intentions. Perceived
usefulness is crucial because it influences how customers judge their shopping experiences online. If customers
perceive that online platforms add value and make their shopping tasks easier, they are more likely to have
favorable attitudes toward e-commerce and intend to make purchases online. Overall, the consistent findings
from past research underline the significance of perceived usefulness in shaping online purchase intentions
and highlight its role in influencing consumer behavior in the online shopping environment hence, this study
proposed the below hypothesis.
H3: There is a relationship between perceived usefulness and online purchase intention.

3. Research Methodology

This article forms part of a major study to investigate the relationship between trust, social influence and
perceived usefulness with online purchase intention among Gen Z. The type of research design used in this
research is correlational study. This is because several independent variables go hand in hand with online
purchase intention. This type of research design assesses the extent to which changes in one variable are
connected to changes in another.

The unit of analysis of this study focuses on the individual level that is Gen Z. The population consists of 154
respondents from a specific social science program. Given the mentioned population, the sample size of 108
was determined based on Krejcie and Morgan (1970). The data was collected using the survey method through
questionnaires. A non-probability approach of a convenient sampling technique was employed to distribute
the survey among respondents.

The questionnaire consists of 19 questions. Four questions about online shopping intention were adopted from
Dharmesti et al. (2021) including I like to shop online, and I have a strong intention to purchase online in the
future. Next, three questions regarding trust were adopted from Cheung and Lee (2001), including the There
are many reliable third-party certification bodies (entities) available or ensuring the trustworthiness of internet
stores and I think third-party certification bodies (entities) such as e-trust are doing a good job. Then, four
questions about social influence were adopted from Sin et al. (2012), which include My family members
influencing me to make an online purchase, and People that I care about and believe advise me to purchase online.
Lastly, eight questions related to perceived usefulness were adopted from Rehman et al. (2019), encompassing
I perceive that using online shopping improves my performance in shopping activities, and I perceived that using
online shopping gives me greater control over my shopping activities. These items' questions were ensured to
have acceptable reliability value and then validated in terms of construct and content.

4. Results

Respondents’ Profile
This section outlines the demographic details of the participants, covering gender, age, class, and residence.
Additionally, it explores their experiences with network providers, preference for online shopping platforms,
monthly online spending averages, and shopping frequency. Based on Table 1, 71.8% of the respondents were
female while 28.2% were male. Following, 91.3% of the respondents, totaling 94 individuals, were aged 22-25
years old, followed by 5.8% totaling 6 individuals who were aged 18-21 years old, and 2.9% totaling 3
individuals who were 26-30 years old. Furthermore, 78.6% of the respondents with a total of 81 individuals
are from Selangor whereas 21.4% of the respondents with a total of 22 individuals are not from Selangor.

In addition, most respondents preferred Shopee as an online shopping platform with a percentage of 63.1%,
totaling 65 individuals, followed by Tiktok Shop with 33% totaling 34 individuals and lastly, Lazada, with 3.9%
of 4 respondents. Next, for the average spending for online shopping per month, month respondents spend
around RM51- RM100 with a percentage of 39.8%, totaling 41 individuals and only less than 10 percent of

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respondents spend above RM151 per month for online shopping. In the same manner, most respondents,
totaling 69 persons with 67% of respondents, spend 1 to 3 times per month for online shopping, while 21.4%
totaling 22 individuals spend 4 to 6 times per month for online shopping.

Table 1: Respondents’ Profile

VARIABLE FREQUENCY PERCENTAGE
GENDER
Males 29 28.2%
Females 74 71.8%
Total 103 100%
AGE
18 - 21 6 5.8%
22-25 94 91.3%
26-30 3 2.9%
Total 103 100%
GEN Z’S HOMETOWN
Selangor 81 78.6%
Outside Selangor 22 21.4%
Total 103 100%
PREFERENCES OF ONLINE SHOPPING PLATFORM
Tiktok Shop 34 33%
Lazada 4 3.9%
Shopee 65 63.1%
Total 103 100%
AVERAGE SPENDING FOR ONLINE SHOPPING PLATFORM
Less than RM50 37 35.9%
RM51 - RM100 41 39.8%
RM101 - RM 150 15 14.6%
Above 151 10 9.7%
Total 103 100%
FREQUENCY OF ONLINE
SHOPPING PER MONTH
Never 1 1%
1-3 times 69 67%
4-6 times 22 21.4%
7-10 times 7 6.8%
greater than 10 times 4 3.9%
Total 103 100%

Descriptive Analysis
Table 2 shows the descriptive analysis of the constructs in this study that consists of the mean, standard
deviation, minimum and maximum values. The highest mean is scored by online purchasing intention (Mean =
4.50, SD = 0.80). followed by perceived usefulness (Mean = 4.45, SD = 0.78), trust (Mean = 4.28, SD = 0.93), and
social influence (Mean = 4.18, SD = 0.90).

Table 2: Descriptive Statistics

Constructs Mean Std. Deviation Minimum Maximum
Online Purchase Intention 4.50 0.80 1 5
Trust 4.28 0.93 1 5
Social Influence 4.18 0.90 1 5
Perceived Usefulness 4.45 0.78 1 5

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Reliability Analysis
The internal reliability of the data from the online survey was examined to some extent using the reliability
analysis. The Cronbach's Alpha test, which determines how closely linked a group of items is to one another,
was used in this study to assess the reliability of the scale. Besides, it helps to provide reliable evidence for (i)
trust, (ii) social influence, and (iii) perceived usefulness with online purchase intention. According to Nunally
(1978), a Cronbach's Alpha reading of 0.70 is considered a standard guideline in research, and the statistics in
this article corroborate this. Based on the statistics in Table 3, all constructs show dependable reliability values
encompassing online purchasing intention ( = 0.759), trust ( = 0.796), social influence ( = 0.779), and
perceived usefulness (= 0.830).

Table 3: Reliability Analysis

Constructs No of items No item deleted Cronbach’s Alpha
Online Purchasing Intention 4 - 0.759
Trust 3 - 0.796
Social Influence 4 - 0.779
Perceived Usefulness 8 - 0.830

Correlation Analysis
Correlation analysis was conducted to ascertain the nature of the relationship between two variables. The
correlation coefficient indicates the direction (positive or negative) and magnitude of the relationship, defining
whether the association is direct or inverse. The coefficient also provides insights into the strength and
statistical significance of the relationship, summarizing the degree of association between the examined
variables. The coefficient's value itself serves as a quantitative measure of the relationship's intensity.

Table 4 presents the findings from a correlation analysis. The analysis revealed a moderate positive correlation
between Trust and Online Purchase Intention, with r = 0.641 and P < 0.01, indicating a substantial relationship.
This suggests that higher levels of trust among the students are associated with stronger intentions to purchase
online. Furthermore, the analysis of the relationship between Social Influence and Online Purchase Intention
yielded a moderate positive correlation, with r = 0.574 and P < 0.01, confirming a significant association. This
means that greater social influence correlates with increased online purchase intentions among students.
Finally, examining Perceived Usefulness and Online Purchase Intention, a positive moderate uphill relationship
was noted, at r = 0.694, P < 0.01, indicating a significant connection. This implies that when students perceive
higher usefulness, their online purchase intentions tend to rise.

Table 4: Correlation Analysis

Constructs 1 2 3 4
Online Purchasing Intention 1 0.641** 0.574** 0.694**
Trust 1 0.665** 0.530**
Social Influence 1 0.590**
Perceived Usefulness 1

Regression Analysis
Regression analysis is aimed to identify which independent variables significantly impact the dependent
variable. Accordingly, Table 5 below illustrates the outcomes of the regression analysis, showcasing the
influence of the independent variables on the dependent variables pertinent to this study. The R2 of 0.588
implies that all the independent variables (trust, social influence and perceived usefulness) explain 58.8% of
the variance in the dependent variable, online purchase intention. Meanwhile, 41.2% of the variance in online
purchase intention is not explained by trust, social influence and perceived usefulness in this study. This
indicates that other independent variables are not included in this study and could further strengthen the
regression equation. Adjusted R2 (0.575) is used to compare the goodness-of-fit for regression models that
contain differing numbers of independent variables. Adjusted R2 penalizes the addition of independent
variables to the model.

The F-test yields an F-value of 47.027 with a p-value < .001, which is under the 0.05 threshold, confirming the

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overall validity of the linear model. Regarding the significance of parameters (t-test), the results indicate that
the variables trust, and perceived usefulness are significant, as their p-values are < .001, falling below the 5%
significance level. Thus, trust and perceived usefulness are positively associated with online purchase
intention. Conversely, the variable for social influence is not significant, with a p-value of .491 (49.1%), which
exceeds the 5% significance level, suggesting no relation between social influence and online purchase
intention.

Table 5: Regression Analysis

Model Unstandardized coefficients Standardized t Sig.
coefficients
B Std. Error Beta
(constant) 2.089 1.393 1.500 0.137
Trust 0.398 0.101 .349 3.932 <0.001
Social Influence 0.062 0.909 .064 .691 .491
Perceived 0.274 0.048 .471 5.738 <0.001
Usefulness
F-Value 47.027
Sig. <.001
Adjusted R2 .575
R-square .588

Discussion
Our study assessed the effect of three primary factors on online purchase intention. Firstly, trust was confirmed
as a significant predictor, supporting Hypothesis 1 (H1), consistent with findings by Jian et al. (2022). This
highlights the critical role trust has in the decision-making process for online purchases, underpinning the
necessity for websites to establish credibility and ensure product quality to foster consumer confidence.
Consumers rely on trust to navigate the uncertainty of online shopping – evaluating the security of
transactional processes and the reliability of product descriptions.

Trust gains further importance due to the plethora of reviews and recommendations available online. When
Gen Z places trust in the authenticity of these reviews, it significantly sways their purchasing decisions.
Conversely, skepticism regarding the legitimacy of reviews or the credibility of those who write them can deter
potential purchases. Therefore, trust functions as a pivotal factor in fostering a sense of security during online
shopping and powerfully dictates whether a consumer proceeds with a transaction.

Contrary to expectations, social influence was not found to have a significant effect on online purchase
intentions, conflicting with Hypothesis 2 (H2) and differing from the findings of Gunawan et al.(2023). This
outcome suggests that the extensive array of online information, including reviews and expert opinions, may
diminish the relative impact of social influence. Therefore, factors such as product quality and cost may take
precedence over social recommendations in consumer decision-making processes.

The efficacy of social influence in online environments is further complicated by the nature of virtual
interactions, which differ significantly from in-person encounters. In the digital space, the overwhelming
presence of opinions and purportedly informational content complicates the ability of consumers to discern
which sources are credible. Thus, the traditional impact of social influence is challenged by the impersonal and,
at times, ambiguous nature of online communication. Additionally, individual variances and demographic
factors contribute to the diverse responses to online social influence. Factors such as cultural background, age,
and personal preferences can influence the degree to which social factors affect purchasing decisions.
Recognizing these nuances is crucial for researchers aiming to understand the multifaceted role of social
influence in the realm of e-commerce.

Finally, perceived usefulness showed a noteworthy effect on online purchase intention, confirming Hypothesis
3 (H3) and resonating with the outcomes identified by Moslehpour et al.(2018). This emphasizes the value that
consumers place on the tangible benefits derived from online shopping, such as convenience and efficacy. The
subjective assessment of how a product may satisfy a need or improve one's quality of life directly influences a

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consumer's readiness to purchase.

Building on this concept, the assessment of perceived usefulness is a critical element driving consumer
behavior. It reflects cognitive judgments about whether a product's features will meet expectations and provide
the desired enhancement to daily life. This judgment, inherent in consumer decision-making, stresses the
importance of perceived usefulness in e-commerce settings. Understanding perceived usefulness aids
businesses in tailoring their offerings to better meet consumer needs and perceptions. This insight is essential
for enhancing product development and forming targeted marketing strategies, ultimately leading to more
successful conversions from browsing to purchasing in the online domain.

5. Managerial Implications and Recommendations

To capitalize on the determinants of online purchasing intentions, particularly trust and perceived usefulness,
online sellers should institute transparent policies. Establishing clear communication about returns, refunds,
and customer service is essential for building trust among university students in Malaysia who participate in
online shopping. A lucid returns policy should specify the conditions under which items can be returned,
outline the return window, and describe the return process in detail (Callarman, 2023). Similarly, a well-
defined refund policy is crucial. Sellers should clearly state the conditions for refunds, expected timelines for
refund processing, and the methods used, ensuring all conditions and exceptions are openly communicated to
prevent confusion among customers (Creator, 2023).

Moreover, providing comprehensive information about customer support—including contact channels,

response times, and operational hours—enhances the reliability and accessibility of the business (Srinivasan,
2023). Through the adoption of such transparent and customer-centric practices, businesses can foster a
trustworthy online environment that not only encourages purchase intentions but also enhances customer
satisfaction and loyalty, contributing to a sustained increase in the customer base for online purchasing.

Online sellers can also leverage influencer partnerships as a strategic approach to amplify their brand's
visibility and credibility. Influencers, due to their substantial social media following and the perceived
authenticity of their endorsements, can drive interest and enhance trust in a brand's offerings (Feng et al.,
2023). Their close-knit relationship with their audience often translates to more impactful recommendations
than traditional advertisements, as their endorsements are regarded as genuine and trustworthy (Cauville,
2022).

When influencers genuinely advocate for a product or service, their recommendations are more likely to
resonate with their followers and inspire actual purchase intentions. This type of marketing transcends the
reach of conventional advertisements and engages audiences through interaction and social endorsement
(Marcyes, 2023). Influencers encourage followers to comment and interact, creating an engaged community
around the brand (Thomas et al., 2023).

Crafting a user-friendly website is essential, as perceived ease of use is intricately linked to perceived
usefulness, both critical determinants of online shopping behavior. The usability of a website significantly
impacts its perceived utility, influencing customers' willingness to engage in online transactions (Din et al.,
2023). A website that is easily navigable allows customers to locate products or information efficiently,
reducing the effort required and enhancing user experience (Kasinphila, 2023). This enhanced user experience
can lead to increased perceptions of the website’s usefulness, as customers value swift and seamless navigation.
Additionally, clear and concise website content, including detailed product descriptions, pricing, and policy
information further contributes to the site's overall utility (Jeannot et al., 2022). A well-organized and
informative website can thus be an indispensable tool in the customer's decision-making process. Lastly,
prioritizing website design to foster ease of use not only streamlines the online shopping experience but also
amplifies the perceived usefulness of the website as a source for information and transactions. These
components play a pivotal role in fortifying the consumer's intention to purchase online.

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Conclusion
In summary, this research aimed to dissect the elements affecting online purchase intentions among Gen Z in
Selangor. The study identified trust, social influence, and perceived usefulness as significant factors influencing
Gen Z's online buying behavior. Trust emerged as a critical determinant, highlighting the need for transparent
business practices and policies to foster a secure shopping environment. Social influence, while observed to be
less significant than anticipated, points to the nuanced efficacy of influencer partnerships in shaping purchase
intent. The sheer volume of online information requires influencers to resonate genuinely with audiences to be
persuasive. Perceived usefulness, underscored by the design of user-friendly websites, remains paramount in
facilitating a positive online shopping experience.

These findings offer a foundation for future research and practical implications for students to better
understand the dynamics of online shopping. Moreover, the insights serve as a moral compass, encouraging the
youth to make informed and responsible decisions while engaging in the digital marketplace. It is hoped that
this research contributes to shaping more judicious and savvy consumer behavior among the younger
generations.

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