Influence of Perceived Benefits and Risks on Consumers' Perceived Value in Online Shopping

2019 ◽  
Vol 8 (3) ◽  
pp. 12-36 ◽  
Author(s):  
Chandra Sekhar Patro
Keyword(s):  
Perceived Risk ◽  
Customer Value ◽  
Online Shopping ◽  
Perceived Value ◽  
Perceived Benefits ◽  
Design Strategies ◽  
Potential Risks ◽  
Buying Behaviour ◽  
Business Pattern ◽  
The Impact

Over the past years, the business-to-customer online shopping market has grown rapidly and changed the business pattern. In order to differentiate themselves from competition, marketers have adopted e-business to provide superior service that satisfies consumers and ultimately create consumers' perceived value. The benefits of e-shopping also come with potential risks that the consumers must be aware of. One of the biggest challenges of e-stores is attracting enough online customers to be profitable and survive. That is why a shift in buying behaviour and attitude of consumers toward e-shopping is a key to success of e-stores. The present study focuses on identifying the key factors influencing consumers' perceived benefits and risks while shopping online. Further, the study presents the impact of perceived benefits and perceived risk on perceived value of e-shoppers. The results of the study will be useful to the e-marketing organizations to understand the consumers' behaviour particularly, in the Indian context and design strategies to provide higher customer value.

scholarly journals How to build trust: Evidence from Thai customers in the latex glove industry

2021 ◽  
Vol 17 (4) ◽  
pp. 120-131
Author(s):  
Long Kim ◽  
Pattarawadee Maijan ◽  
Teerasak Jindabot ◽  
Wanamina Bostan Ali
Keyword(s):  
Product Quality ◽  
Perceived Risk ◽  
Customer Value ◽  
Structural Equation ◽  
Perceived Value ◽  
Equation Model ◽  
Latex Glove ◽  
Study Product ◽  
Customer Trust ◽  
The Impact

This paper examined the impact of product quality, perceived risk, and perceived value on customer trust in the latex glove industry of Thailand. It used a structural equation model (SEM) to analyze the association between two or more variables. Data collection was conducted in Thailand during the pandemic of COVID-19. Five hundred people looking for glove protection were invited to join the survey; however, only 384 provided responses were valid enough for the data analysis. According to the empirical results of this study, product quality demonstrated significant and positive impacts on perceived value and trust. In addition, perceived value acted not only as a significant and positive predictor of customer trust but also as a partial mediator between product quality and customer trust. On the other hand, the current results demonstrated that perceived risk had little impact on perceived value and trust, while product quality was the primary benefit for increasing perceived value and trust among customers. Thus, ambiguity among customers was unlikely to demonstrate any serious concern for customer value and trust. Overall, customer trust relied significantly on perceived value through increased product quality. AcknowledgmentThis study was supported by Internal Research Grant Funding of Academic year 2021, Hatyai University and Postdoctoral Fellowship, Prince of Songkla University.

scholarly journals Impact of Perceived Risk on Consumers Technology Acceptance in Online Grocery Adoption amid COVID-19 Pandemic

2021 ◽  
Vol 13 (18) ◽  
pp. 10221
Author(s):  
Sufyan Habib ◽  
Nawaf N. Hamadneh
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Online Shopping ◽  
Research Work ◽  
Mobile Internet ◽  
Growth Potential ◽  
Internet Technology ◽  
Consumer Trust ◽  
Online Purchase ◽  
The Impact

E-commerce industry has witnessed a phenomenal growth globally due to the sudden spread of the COVID-19 pandemic and the advancement of mobile Internet technology, with fast adaption of online shopping technologies by the customers. Previously, online shopping was only available in a few product categories and to a select group of consumers. The COVID-19 guidelines related to safety, physical distancing, closure, lockdown, and other restrictions have insisted that consumers shop online. Because of e-commerce growth, the grocery (FMCG) industry is also equipped with advanced technologies such as the Internet of Things (IoT), cloud computing, and block chain technology. This paper analyzes the UTAUT2 model and its influence on perceived risk and consumer trust in online purchase intention of grocery categories of products among Indian customers. We tried to analyze the growth potential of new technologies in grocery retail and formulated the hypotheses. The results showed that the spread of COVID-19 pandemic had a significant influence on the online shopping behavior of Indian customers. The outcome of the study partly assists businesses in understanding the impact of the factors of consumer adaption of technology, perceived risk associated with online transaction, consumer trust in online technologies and consumer online purchase intention of grocery products. To promote e-commerce in India, the current study suggests that marketers should try to develop consumer trust and lowering the perceived risk associated with online shopping. Some management implications and future area of study based on empirical findings are also highlighted in the present research work.

Mobile-banking adoption: empirical evidence from the banking sector in Pakistan

2018 ◽  
Vol 36 (7) ◽  
pp. 1386-1413 ◽  
Author(s):  
Maya F. Farah ◽  
Muhammad Junaid Shahid Hasni ◽  
Abbas Khan Abbas
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Banking Sector ◽  
Perceived Value ◽  
Equation Modeling ◽  
Mobile Banking ◽  
Content Type ◽  
Actual Use ◽  
Use Behavior ◽  
The Impact

Purpose The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs of the unified theory of acceptance and use of technology 2 are studied. Non-monetary value is studied through perceived value. Trust and perceived risk are also included to predict intention. Design/methodology/approach A questionnaire was utilized to evaluate customer responses on a five-point Likert scale. A convenience sampling technique was used to collect data from a sample of 490 respondents in Pakistan. The data were analyzed using AMOS and SPSS for Cronbach’s α, CR, CMV, AVE, Harmon’s single factor test, correlation and structural equation modeling. Findings The results of the study show that most of the predictors of intention, including perceived value, performance expectancy, habit, social influence, effort expectancy, hedonic motivation (except for facilitating condition), perceived risk and trust, are significant. All predictors of usage behavior are significant. Research limitations/implications A cross-sectional study was conducted due to time constraints. Practical implications Bank managers must focus on improving customers’ intentions to use m-banking as well as on providing facilitating conditions to increase its actual use. To boost mobile banking, banks’ management must consider the customers’ habits while designing their m-banking products. Originality/value The findings of this paper are not only interesting in terms of boosting m-banking diffusion rate, but also in terms of financial inclusion of the vast majority of mobile users. Further the impact of intention, facilitating condition and habit were checked on actual use behavior since people tend not always to act upon their intentions.

scholarly journals The impact of perceived risk on on-line purchase behaviour

2014 ◽  
Vol 4 (4) ◽  
pp. 99-106
Author(s):  
Charlene Gerber ◽  
Shannon Ward ◽  
Leila Goedhals-Gerber
Keyword(s):  
Perceived Risk ◽  
Emerging Market ◽  
Full Potential ◽  
Perceived Risks ◽  
Developed Markets ◽  
Online Retailers ◽  
On Line ◽  
Buying Behaviour ◽  
The Impact ◽  
Online Buying

To avoid risks, consumers tend to be failry thoughtful decision makers. Research has shown that consumers perceive risks associated with purchasing online and as a result online purchasing has not yet reached the numbers that were projected. In order for e-commerce to live up to its full potential, online retailers should gain an understanding of which perceived risks online purchasing consumers are most concerned with. This study aimed to assess the impact of perceived risk on online buying behaviour. Personal interview surveys were conducted in an emerging market whereby 200 respondents that have access to the internet were interviewed in selected malls with regards to their perceived risks when buying online. The results showed that perceived risk does have an impact on online buying behaviour, and that consumers that have not bought online in the past are likely not to do so in the future. The results show that characteristics of emerging markets are sufficiently distinct from developed markets in that consumers in developed markets seem to be more conservative when buying online. Marketers should therefore developed alternative marketing programs when communicating to these markets in an attempt to persuade consumers to buy online.

Determining the impact of e-commerce quality on customers’ perceived risk, satisfaction, value and loyalty

2019 ◽  
Vol 11 (4) ◽  
pp. 576-587 ◽  
Author(s):  
Ιoannis Tzavlopoulos ◽  
Katerina Gotzamani ◽  
Andreas Andronikidis ◽  
Chris Vassiliadis
Keyword(s):  
Path Analysis ◽  
Customer Loyalty ◽  
Perceived Risk ◽  
Perceived Value ◽  
Perceived Quality ◽  
Ease Of Use ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The quality assessment of e-commerce services is of particular research interest, as it has been widely found that quality is directly linked to customer satisfaction and loyalty, which in turn leads to improved sales results, the creation of reputation and enhanced competitiveness for active companies in the industry. The purpose of this paper is to investigate the quality in e-commerce and to examine the relationships developed among its individual dimensions and satisfaction, perceived value, perceived risk and customer loyalty. Design/methodology/approach Initially, exploratory factor analysis with the equamax rotation method was applied to identify the perceptions of consumers regarding quality, value, satisfaction, risk and loyalty. The effect of the factors that make up perceived quality of e-services on customer value, satisfaction, risk and loyalty was examined by using OLS regression analysis. Likewise, path analysis was applied to confirm the impact of perceived quality on total consumer satisfaction, perceived value and loyalty, utilizing perceived risk as a moderating variable. Findings The authors found that quality overall has a positive and statistically significant relationship with perceived value, satisfaction and loyalty and negative with perceived risk. From the individual dimensions of quality, it has been found that ease of use of websites, design, responsiveness and security lead to increased levels of perceived value, while ease of use, responsiveness and personalization lead to an increase in the overall satisfaction of consumers. Overall, it has been documented that high levels of quality lead to higher satisfaction and perceived value, mitigating perceived risk and positively impacting the adoption of desirable consumer behaviors as reflected in customer loyalty. Research limitations/implications In this respect, future research in the field of e-commerce can examine the quality of the respective electronic services taking into account different product and business categories. In addition, the future research can focus on the impact of high satisfaction, perceived value and customer loyalty on various sizes of business performance, including sales, market share, competitiveness, financial efficiency and sustainability. Practical implications Given the clear relationship between quality, perceived value and satisfaction, e-commerce businesses have the potential to benefit significantly from improvements in the quality of their services, as this leads to increased levels of perceived value, high level of satisfaction and hence enhanced customer loyalty, which is in turn reflected in increased sales, positive word-of-mouth, improved reputation and brand loyalty. In this way, e-businesses will be able to improve their financial position, achieve higher market shares, maintain their competitive advantage, attract new development resources and become sustainable on a long-term basis. Social implications Businesses need to understand the factors that determine the quality in e-commerce to be able to achieve customer satisfaction and reduce perceived risk through improved quality. These factors, which consumers perceive as important for quality, are critical. Originality/value The concepts of quality, perceived value, risk, satisfaction and loyalty are considered to be interlinked in both traditional consumer research and e-commerce, as high levels of perceived quality are believed to lead to positive assessments of the cost-benefit and, hence, the perceived value (Cronin et al., 2000; Sweeney and Soutar, 2001; Korda and Snoj, 2010) and loyalty. In this context, this study attempted to study the relationship of these five variables, through both regression and path analysis, resulting in similar results. According to the findings of the study, perceived quality of website services has a positive and statistically significant impact on perceived value, satisfaction and an opposite effect on perceived risk, while the last is mitigating variable for and loyalty.

scholarly journals Retailer–Consumer Sustainable Business Environment: How Consumers’ Perceived Benefits Are Translated by the Addition of New Retail Channels

2018 ◽  
Vol 10 (9) ◽  
pp. 2959 ◽  
Author(s):  
Jing Zhu ◽  
Muhammad Goraya ◽  
Yu Cai
Keyword(s):  
Perceived Risk ◽  
Business Environment ◽  
Channel Structure ◽  
Perceived Benefits ◽  
Sustainable Business ◽  
Consumer Benefits ◽  
Significant Difference ◽  
Offline Channels ◽  
The Impact ◽  
Perceived Variety

In the current era, consumers are living in a multi-channel shopping environment. Retailers are expanding their business channels to get the most out of their ongoing multi-channel businesses and to create a sustainable shopping environment for consumers. The extant literature is quite elaborative about the impact of new online channels on retailers, but a very limited part of the said literature discusses the impact of adding both new online/offline channels to the retailers’ existing business channels and the perceived benefits they create for consumers. This paper makes the comparison of multi-channel additions and their impacts on consumer benefits in creating a sustainable retailer–consumer business environment. This dimension of research is quite new regarding the subject of multi-channel shopping. In this paper, a simulated experimental design is adopted to analyze the impact of the multi-channel structure with a mix of different product types (experience and search) and the perceived benefit to consumers (perceived variety, perceived convenience, and perceived risk). The results show that, compared to the newly added offline channels, newly added online channels can make consumers more aware of the overall variety, increase perceived convenience, and reduce perceived risk. However, for retailers selling search products, the newly added online channel does not create any significant difference to the consumers’ overall perceived variety of the retailers.

Factors influencing smartphone based online shopping: an empirical study of young Women shoppers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahima Shukla ◽  
Vranda Jain ◽  
Richa Misra
Keyword(s):  
Young Women ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Online Shopping ◽  
Working Women ◽  
Content Type ◽  
Conversion Rates ◽  
Tam Model ◽  
Perceived Benefit ◽  
The Impact

PurposeThe study examines how young working women are motivated by online shopping. The study tests the relationship between Internet self-efficacy (ISE), website aesthetics, and purchase intention through perceived benefit. An investigation of the impact of perceived risk on purchase intention is also carried out.Design/methodology/approachThe paper carried out a quantitative study based on a purposive sample of 180 working women from the Delhi-NCR region of India and used Structural Equation Modelling (SEM) to test hypotheses based on the extended TAM model.FindingsPerceived benefit, website aesthetics, and ISE positively and significantly impact working women's purchase intention. The study also finds an indirect relationship between ISE and purchase intention through perceived benefit. Perceived risk has a negative and insignificant influence on working women's purchase intention for online shopping.Practical implicationsThe study finding reflects that perceived website aesthetics fill the gap between offline and online environments. ISE makes shopping easy and increases the shopper's confidence. A mobile-optimized website with ease of navigation would increase women shoppers' conversion rates on mobile devices, leading to a favourable impact on revenue generation for online retailers.Originality/valueDespite the vast literature on constructs derived from the TAM model, very few studies have researched young women consumers from an emerging economy perspective. The novelty of this research lies in identifying the factors that influence young working women's online shopping intention using smartphone through the glance of ISE and perceived aesthetics in the Indian context.

Exploring the Impact of Peer Influence on Online Shopping

2021 ◽  
pp. 196-210
Author(s):  
Rob Kim Marjerison ◽  
Yiqi Athena Hu
Keyword(s):  
Peer Influence ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Online Shopping ◽  
Negative Influence ◽  
Perceived Usefulness ◽  
Purchase Behavior ◽  
Online Retailers ◽  
The Impact ◽  
The Relationship

Commercialization of social media is no longer optional for businesses, especially online businesses. An effective online presence is crucial for creating awareness of new products or services and triggering activity. The objective of this chapter is to investigate peers' influence on Chinese millennial consumers' purchase behavior. To be specific, this study examines the relationship between peers' purchase histories and consumers' purchase decisions among Chinese millennials. Specifically, this study explores whether and to what extent peers' purchase histories affect consumers' purchase perception, such as perceived usefulness, perceived risk, and purchase intention. Analysis of online surveys shows how peer influence affects Chinese millennial's purchase intention and decision in online shopping. Furthermore, perceived usefulness positively also affects purchase intention, while perceived risk has a negative influence. This chapter provides suggestions for online retailers to attach importance to peer influence when advertising their products.

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