Impact of Online Reviews on Consumer Trust, Perceived Value, and Purchase Behavior in Pakistan’s E-Commerce Market

Abstract

This study investigates how online reviews shape consumer trust, perceived value and purchase behavior in the Pakistani fashion e-commerce market. The study is conducted using a quantitative method where questionnaire data obtained from 560 online shoppers from main cities of Pakistan is used. Structural equation modeling (SEM) was applied to examine the relationships among key variables: Quality of online reviews, reviewer credibility, buyer perceived trustworthiness, buyer perceived value and purchase behavior. It turns out that high quality review by credible reviewers increases perceptions of trustworthiness. Secondly, perceived trustworthiness increases perceived value, which in turn mediates the effect of perceived trust on purchase behavior. The demonstration of these findings imparts an important message that highlights the critical role that online reviews play in developing consumer perception and decision making in e-commerce. Implications for platforms are provided by the results, noting the need for high quality and detailed reviews from credible reviewers to establish trust perceptions, value perceptions and, ultimately, purchase behavior. Furthermore, the study provides the direction of possible future research, that is, exploring video reviews and social media influencers in the fashion industry. This study is part of the growing literature on digital consumer behavior and makes findings that are exclusive to the Pakistani e-commerce market.

Keywords: Online Reviews, Reviewer Credibility, Perceived Trustworthiness, Perceived Value, Purchase Behavior, Fashion E-Commerce, Consumer Trust