TRUST SIGNALS FOR STARTUP E-COMMERCE: EFFECTS OF PERCEIVED SECURITY, TRANSPARENCY, AND CREDIBILITY ON ONLINE SHOPPING FREQUENCY IN PAKISTAN

Although e-commerce has seen a boom in Pakistan, consumers remain hesitant to use it, especially with startup sellers, due to data protection concerns and inadequate post-purchase support. Until now, research has mostly focused on individual trust cues that can enhance consumer confidence, leaving a practical gap: which signals prevail when competing cues are present? Using a signal theory framework, we surveyed 200 Pakistani consumers, investigating whether three trust cues: perceived security, transparency, and credibility, can affect online shopping frequency (ordinal measure). Ordered logit regression models, while controlling for age, gender, and education, suggested that each signal significantly predicted heightened shopping frequency when considered in isolation. However, in a competing cues context, credibility emerged as the sole unique predictor. This indicates that, within the realm of startup e-commerce, credibility is the most potent signal, surpassing basic safeguards and disclosures. Our findings offer actionable guidance to resource-constrained startups and contribute to the broader discourse on enhancing consumer trust in Pakistan’s emerging e-commerce marketplace.