KOREASCHOLAR

Reports indicate that in 2017, social commerce had become a 20 billion dollar industry. Given the developing world’s fatigue with social media, social commerce growth will likely be fueled by consumers from developing economies. While literature has investigated social commerce in the context of established brands in developed economies (e.g. Kim and Ko, 2012), it cannot yet explain consumers’ engagement with the uniqueness of social media commerce in developing economies. Social commerce in Southeast Asian economies are largely conducted amongst individuals or micro businesses. Since social media platforms largely do not provide commerce security nor support, consumers are more vulnerable to fraudulent practices. What factors motivate these purchases despite such risks? This study offers insights into how consumers’ motivated reasoning influences their willingness to purchase over social media. We focus on the social media store’s ease of use and perceived security as antecedents of trust. Specifically, we argue that perceiving a lack of ability to purchase from other channels would induce higher trust towards a social media store, despite low perceptions of ease and security of transaction. Data was collected from 224 Indonesian social media users who have been exposed to social media stores on Instagram. The findings suggest that when consumers perceive high control of how they could obtain desired goods, trust becomes a logical function of the perceived safety and ease of use of the shops. However, under low perceived control, consumers display high trust in social media shops despite not being convinced that they are safe nor easy to use. The findings extend our understanding about the antecedents of value creation in social commerce (Stephen and Toubia, 2010). Our results enrich prior literature by showing how motivated reasoning leads to biases in judgment to be in favor of desired goals (Blanton and Gerrard, 1997), and extends it in the novel context of social media commerce. Furthermore, by incorporating the literature on perceived behavioral control and motivated reasoning, the current study provides important empirical evidence for the presence of perceived control over alternate channels as a significant driver for trust towards social media shops. The current research also has a number of implications for social commerce providers in developing economies. This study shows that it is advantageous for managers to cultivate trust using interactivity and reliability to elicit a sense of security and ease of use. However, our findings also offers a caution for firms to not be lulled into a false sense of comfort by taking consumers’ trust at face value.

• Agung Sembada(Swinburne University of Technology, Australia)
• Koay Kian Yeik(Monash University, Malaysia)