The moderating effect of social presence on consumer brand trust and purchase intention in SMEs

Abstract

Small to medium enterprises (SME’s) are not immune to the pressure to digitise and build an online presence. A primary challenge faced is the need to build trust and increase consumer purchase intention, to drive sales which is imperative for their long-term growth. Literature on the tangible benefits of online presences for SMEs in emerging markets remains limited. This South African study used social presence theory to investigate the moderating role of online presence on brand trust and consumer intentions to purchase in SMEs. Utilising a quantitative survey design, with 216 participants were randomly surveyed using an online questionnaire. Descriptive and Inferential statistical methods like multiple linear regression were used to test the Hypotheses. The results showed that social presence, through website and social media presence, positively influence brand trust, with social media having a stronger effect. Additionally, SME brand trust has a positive relationship with consumer purchase intention, however online presence was not found to moderate the relationship between brand trust and purchase intention. The study extends the understanding of the role of social presence, brand trust and consumer purchase intention in the context of SMEs in South Africa. These findings provide SME owners and marketers with insights on how to leverage an online presence for successful business outcomes.