An Investigation of Consumer-perceived Risk on Electronic Commerce Transactions: The Role of Institutional Trust and Economic Incentive in a Social Exchange Framework

Abstract

Social exchange has been proposed by a number of marketing scholars as a fundamental framework for viewing marketing (Bagozzi, 1974). Bagozzi ( 1974) further argued that at its most basic level , the social exchange model simply states that people and organizations interact in such a manner so as to maximize their rewards and minimize their costs. Hence, the use of the social exchange framework in gaining insights into the emerging market model of the Internet is appropriate.