• Title/Summary/Keyword: Online Risk Test

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Perceived Risk Factors Affecting Consumers' Online Shopping Behaviour

  • THAM, Kok Wai;DASTANE, Omkar;JOHARI, Zainudin;ISMAIL, Nurlida Binti
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.4
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    • pp.249-260
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    • 2019
  • The study examines the impact of financial risk, convenience risk, non-delivery risk; return policy risk and product risk on online consumer behavior of Malaysian consumers. The research employed a self-administered survey to collect empirical data from 245 Malaysian online shoppers by using convenience sampling. Cronbach alpha was calculated to confirm the reliability of the data and then normality was assessed. Confirmatory Factor Analysis was then conducted to test the model using the goodness-of-fit tests. And finally, structural equation modeling is used to test the hypotheses and draw conclusions. IBM SPSS AMOS version 22.0 was utilized for data analysis. The research indicates that product risk, convenience risk, and return policy risk have a significant and positive impact on online shopping behavior. Financial risk is found to have insignificant and negative effects on consumer behavior. In addition, the non-delivery risk is found to have a significant and negative impact on online shopping behavior. The findings provide a useful model for measuring and managing perceived risk in online shopping which may result in an increase in participation of Malaysian consumers and reduce their cognitive deficiencies in the e-commerce environment. Several managerial implications are discussed along with the scope for future research.

Perceived Risk in Online Purchase of Sporting Goods (스포츠용품 인터넷 구매의 위험지각에 관한 연구)

  • Min Dai-Hwan;Lee Seung-Yeop;Rim Seong-Taek
    • Journal of Information Technology Applications and Management
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    • v.13 no.2
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    • pp.127-143
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    • 2006
  • As the number of Internet users increases, online shopping malls are gradually flourishing and sales are continuously growing. However, since consumers are not able to check what they purchase when buying products on the Internet, they are bound to have higher risk perception than buying directly from off-line stores. Especially, sporting goods require a special attention because a preliminary test is important. Therefore, the risk perception is much higher when people purchase sporting goods online. This study first identifies the multi-dimensionality of risk perception. Then, it investigates whether online purchasing experience of sporting goods makes differences in the level of risk perception. In addition, it examines whether the risk perception by those who had an experience in purchasing sporting goods online affects the customer satisfaction. This study has identified five dimensions in the concept of risk perception, such as financial risk, performance risk, security risk, delivery risk, and psychological/physical risk. A statistical analysis shows that people without an experience in purchasing sporting goods online have perceived significantly higher performance risk, security risk, and psychological/physical risk than those with online purchasing experiences. Finally, this study has found that delivery risk, financial risk, and psychological/physical risk have significant negative influences on the customer satisfaction.

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A Study on Consumer's Channel Transition Behavior in the Information Search and Purchase Channel (정보탐색과 구매결정에 있어서 채널이동 소비자들에 대한 연구)

  • Chae, Jin Mie
    • The Korean Fashion and Textile Research Journal
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    • v.21 no.6
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    • pp.743-753
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    • 2019
  • This study investigates differences in demographic characteristics, shopping orientation, perceived risk, and satisfaction after purchase among consumer types. This study classifies consumer types according to their channel transition behaviors between the online and offline channels with a focus on the steps of information research and buying decision in buying decision-making process. The four consumer groups are as follows: off-off type (offline research-offline purchase), on-on type (online research-online purchase), on-off type (online research-offline purchase) and on/off-off type (online and offline research-offline purchase), off-on type (offline research-online purchase) and on/off-on type (online and offline research-online purchase). Data were collected from adults over 20 years old who had bought clothes within one year. The questionnaire was carried out from July, 2019 using a professional internet research panel; in addition, 500 sets of useful data were analyzed by descriptive statistics, factor analysis, reliability analysis, chi-squared test, ANOVA and Duncan-test using SPSS 21.0. The findings showed significant differences among the classified consumer groups for consumer demographics, shopping orientation, perceived risk, and purchase after satisfaction. The results imply that consumers show a variety of channel transition behaviors based on demographic variables, shopping orientation, and perceived risk. Understanding and adapting to consumer purchase behaviors will allow company distribution channels to be effectively managed and eventually increase consumer satisfaction as well as company sales volume.

An Empirical Study on the Factors Influencing Perceived Risks and Intention to Use Online Bookstores (인터넷 서점에서 소비자의 지각된 위험 및 이용의도에 영향을 미치는 요인에 관한 실증 연구)

  • Yang, Sung-Byung
    • Journal of Information Technology Services
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    • v.12 no.4
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    • pp.267-287
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    • 2013
  • As the online bookstore market has been saturated and the level of competition has become more intense, maintaining competitive advantage by mitigating consumers' perceived risks can be considered as one of good alternative strategies a company should use. Although studies that identify the types of consumers' perceived risks in the context of online bookstores as well as validate the relationships between perceived risk and its antecedent/consequent factors in an integrated manner are strongly required, there has been less attention paid to these matters. Therefore, based on previous literature, we identify five types of perceived risks (financial, performance, online payment, delivery, and seller's response risk) and validate the impacts of online bookstore specific characteristics and user specific characteristics on perceived risk. In addition, we also verify causal relationship between perceived risk and intention to use online bookstores. The results of PLS test using 108 samples collected from undergraduate and graduate students confirm that perceived risk has a negative impact on intention to use and four antecedents (reputation, service quality, self-efficacy, and user experience) are significantly related to perceived risk.

Credit Risk Evaluations of Online Retail Enterprises Using Support Vector Machines Ensemble: An Empirical Study from China

  • LI, Xin;XIA, Han
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.8
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    • pp.89-97
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    • 2022
  • The e-commerce market faces significant credit risks due to the complexity of the industry and information asymmetries. Therefore, credit risk has started to stymie the growth of e-commerce. However, there is no reliable system for evaluating the creditworthiness of e-commerce companies. Therefore, this paper constructs a credit risk evaluation index system that comprehensively considers the online and offline behavior of online retail enterprises, including 15 indicators that reflect online credit risk and 15 indicators that reflect offline credit risk. This paper establishes an integration method based on a fuzzy integral support vector machine, which takes the factor analysis results of the credit risk evaluation index system of online retail enterprises as the input and the credit risk evaluation results of online retail enterprises as the output. The classification results of each sub-classifier and the importance of each sub-classifier decision to the final decision have been taken into account in this method. Select the sample data of 1500 online retail loan customers from a bank to test the model. The empirical results demonstrate that the proposed method outperforms a single SVM and traditional SVMs aggregation technique via majority voting in terms of classification accuracy, which provides a basis for banks to establish a reliable evaluation system.

The Effect of Perceived Risk and Technology Self-Efficacy on Online Learning Intention: An Empirical Study in Vietnam

  • DOAN, Thuy Thanh Thi
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.10
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    • pp.385-393
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    • 2021
  • In an effort to find ways to increase the effectiveness of online education, literature and empirical study based on the Technology Acceptance Model (TAM) have addressed a variety of questions, including perceived ease of use (PEU) and perceived usefulness (PU). After TAM, extensive studies have focused on the impact of extrinsic factors on PEU and PU, including Self-efficacy and Perceived Risk. This study aims to analyze the direct, indirect, and moderating effects of Self-efficacy and Perceived Risk on Online Learning Intention (OLI). Data was collected through a survey method from 472 students studying at universities in Vietnam. The collected data was analyzed using the PLS-SEM technique to test the hypotheses. The findings reveal that Technology Self-Efficacy influences the intention to take online courses both directly and indirectly through Perceived Ease of Use and Perceived Usefulness. Besides, Perceived Risk COVID-19 also has a positive effect on online learning intention, and plays a role as a moderating variable on the impact of PU on OLI. These findings suggest that students will have a stronger intention to study online when they are confident in their ability to use technology. When they believe in their ability to use technology, their online learning intention will also increase.

How Enduring Product Involvement and Perceived Risk Affect Consumers' Online Merchant Selection Process: The 'Required Trust Level' Perspective (지속적 관여도 및 인지된 위험이 소비자의 온라인 상인선택 프로세스에 미치는 영향에 관한 연구: 요구신뢰 수준 개념을 중심으로)

  • Hong, Il-Yoo B.;Lee, Jung-Min;Cho, Hwi-Hyung
    • Asia pacific journal of information systems
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    • v.22 no.1
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    • pp.29-52
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    • 2012
  • Consumers differ in the way they make a purchase. An audio mania would willingly make a bold, yet serious, decision to buy a top-of-the-line home theater system, while he is not interested in replacing his two-decade-old shabby car. On the contrary, an automobile enthusiast wouldn't mind spending forty thousand dollars to buy a new Jaguar convertible, yet cares little about his junky component system. It is product involvement that helps us explain such differences among individuals in the purchase style. Product involvement refers to the extent to which a product is perceived to be important to a consumer (Zaichkowsky, 2001). Product involvement is an important factor that strongly influences consumer's purchase decision-making process, and thus has been of prime interest to consumer behavior researchers. Furthermore, researchers found that involvement is closely related to perceived risk (Dholakia, 2001). While abundant research exists addressing how product involvement relates to overall perceived risk, little attention has been paid to the relationship between involvement and different types of perceived risk in an electronic commerce setting. Given that perceived risk can be a substantial barrier to the online purchase (Jarvenpaa, 2000), research addressing such an issue will offer useful implications on what specific types of perceived risk an online firm should focus on mitigating if it is to increase sales to a fullest potential. Meanwhile, past research has focused on such consumer responses as information search and dissemination as a consequence of involvement, neglecting other behavioral responses like online merchant selection. For one example, will a consumer seriously considering the purchase of a pricey Guzzi bag perceive a great degree of risk associated with online buying and therefore choose to buy it from a digital storefront rather than from an online marketplace to mitigate risk? Will a consumer require greater trust on the part of the online merchant when the perceived risk of online buying is rather high? We intend to find answers to these research questions through an empirical study. This paper explores the impact of enduring product involvement and perceived risks on required trust level, and further on online merchant choice. For the purpose of the research, five types or components of perceived risk are taken into consideration, including financial, performance, delivery, psychological, and social risks. A research model has been built around the constructs under consideration, and 12 hypotheses have been developed based on the research model to examine the relationships between enduring involvement and five components of perceived risk, between five components of perceived risk and required trust level, between enduring involvement and required trust level, and finally between required trust level and preference toward an e-tailer. To attain our research objectives, we conducted an empirical analysis consisting of two phases of data collection: a pilot test and main survey. The pilot test was conducted using 25 college students to ensure that the questionnaire items are clear and straightforward. Then the main survey was conducted using 295 college students at a major university for nine days between December 13, 2010 and December 21, 2010. The measures employed to test the model included eight constructs: (1) enduring involvement, (2) financial risk, (3) performance risk, (4) delivery risk, (5) psychological risk, (6) social risk, (7) required trust level, (8) preference toward an e-tailer. The statistical package, SPSS 17.0, was used to test the internal consistency among the items within the individual measures. Based on the Cronbach's ${\alpha}$ coefficients of the individual measure, the reliability of all the variables is supported. Meanwhile, the Amos 18.0 package was employed to perform a confirmatory factor analysis designed to assess the unidimensionality of the measures. The goodness of fit for the measurement model was satisfied. Unidimensionality was tested using convergent, discriminant, and nomological validity. The statistical evidences proved that the three types of validity were all satisfied. Now the structured equation modeling technique was used to analyze the individual paths along the relationships among the research constructs. The results indicated that enduring involvement has significant positive relationships with all the five components of perceived risk, while only performance risk is significantly related to trust level required by consumers for purchase. It can be inferred from the findings that product performance problems are mostly likely to occur when a merchant behaves in an opportunistic manner. Positive relationships were also found between involvement and required trust level and between required trust level and online merchant choice. Enduring involvement is concerned with the pleasure a consumer derives from a product class and/or with the desire for knowledge for the product class, and thus is likely to motivate the consumer to look for ways of mitigating perceived risk by requiring a higher level of trust on the part of the online merchant. Likewise, a consumer requiring a high level of trust on the merchant will choose a digital storefront rather than an e-marketplace, since a digital storefront is believed to be trustworthier than an e-marketplace, as it fulfills orders by itself rather than acting as an intermediary. The findings of the present research provide both academic and practical implications. The first academic implication is that enduring product involvement is a strong motivator of consumer responses, especially the selection of a merchant, in the context of electronic shopping. Secondly, academicians are advised to pay attention to the finding that an individual component or type of perceived risk can be used as an important research construct, since it would allow one to pinpoint the specific types of risk that are influenced by antecedents or that influence consequents. Meanwhile, our research provides implications useful for online merchants (both online storefronts and e-marketplaces). Merchants may develop strategies to attract consumers by managing perceived performance risk involved in purchase decisions, since it was found to have significant positive relationship with the level of trust required by a consumer on the part of the merchant. One way to manage performance risk would be to thoroughly examine the product before shipping to ensure that it has no deficiencies or flaws. Secondly, digital storefronts are advised to focus on symbolic goods (e.g., cars, cell phones, fashion outfits, and handbags) in which consumers are relatively more involved than others, whereas e- marketplaces should put their emphasis on non-symbolic goods (e.g., drinks, books, MP3 players, and bike accessories).

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An Analysis of the Effects of Luxury Brand Consumers on the Re-purchase Intentions, Behavioral and Risk Perception (명품브랜드 소비자의 재 구매의도에 미치는 영향 분석 -온라인 해외직업구매 이용동기, 행동의도, 위험지각을 중심으로-)

  • Yoon, Seonyoung;Lee, Seunghee
    • Journal of Fashion Business
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    • v.22 no.5
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    • pp.1-14
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    • 2018
  • The purpose of this study was to define the purchase behavior of online luxury fashion brand consumers that soon became new luxury consumption trends. To investigate online luxury fashion brand consumer's purchase behavior, three variables were suggested based on advanced researches. These variables include economic value, item variety and pleasure. Purchasing luxury online was not common but as cross-border online shopping market became popular, consumers began to purchase luxury items through online shopping platforms. Preliminary surveys was conducted on 20~40-year-old consumers who have experience in online shopping for luxurious items. Total 238 questionnaires were used for analysis. By using SPSS, frequency analysis, factor analysis, reliability analysis, correlation analysis, regression analysis, t-test and ANOVA were conducted. The results of the study were as follow; first, consumer's purchase behavior appeared to be influenced by the order of pleasure of shopping, economic value and item variety. Repurchase intention appeared to be affected by the order of economic value, item variety, and pleasure of shopping. Second, online luxury fashion consumers perceived that risk does not affect purchase intention and repurchase intention. Third, as purchase intention increases, repurchase intention also increases. Fourth, shopping value, age and channel risk also indicated meaningful differences. As an early study of luxury fashion brand products purchased directly online, the academic significance can facilitate an overall understanding of consumer behavior such as usage motive, risk perception, behavioral intention.

The Impact of Perceived Risks Upon Consumer Trust and Purchase Intentions (인지된 위험의 유형이 소비자 신뢰 및 온라인 구매의도에 미치는 영향)

  • Hong, Il-Yoo B.;Kim, Woo-Sung;Lim, Byung-Ha
    • Asia pacific journal of information systems
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    • v.21 no.4
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    • pp.1-25
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    • 2011
  • Internet-based commerce has undergone an explosive growth over the past decade as consumers today find it more economical as well as more convenient to shop online. Nevertheless, the shift in the common mode of shopping from offline to online commerce has caused consumers to have worries over such issues as private information leakage, online fraud, discrepancy in product quality and grade, unsuccessful delivery, and so forth, Numerous studies have been undertaken to examine the role of perceived risk as a chief barrier to online purchases and to understand the theoretical relationships among perceived risk, trust and purchase intentions, However, most studies focus on empirically investigating the effects of trust on perceived risk, with little attention devoted to the effects of perceived risk on trust, While the influence trust has on perceived risk is worth studying, the influence in the opposite direction is equally important, enabling insights into the potential of perceived risk as a prohibitor of trust, According to Pavlou (2003), the primary source of the perceived risk is either the technological uncertainty of the Internet environment or the behavioral uncertainty of the transaction partner. Due to such types of uncertainty, an increase in the worries over the perceived risk may negatively affect trust, For example, if a consumer who sends sensitive transaction data over Internet is concerned that his or her private information may leak out because of the lack of security, trust may decrease (Olivero and Lunt, 2004), By the same token, if the consumer feels that the online merchant has the potential to profit by behaving in an opportunistic manner taking advantage of the remote, impersonal nature of online commerce, then it is unlikely that the merchant will be trusted, That is, the more the probable danger is likely to occur, the less trust and the greater need to control the transaction (Olivero and Lunt, 2004), In summary, a review of the related studies indicates that while some researchers looked at the influence of overall perceived risk on trust level, not much attention has been given to the effects of different types of perceived risk, In this context the present research aims at addressing the need to study how trust is affected by different types of perceived risk, We classified perceived risk into six different types based on the literature, and empirically analyzed the impact of each type of perceived risk upon consumer trust in an online merchant and further its impact upon purchase intentions. To meet our research objectives, we developed a conceptual model depicting the nomological structure of the relationships among our research variables, and also formulated a total of seven hypotheses. The model and hypotheses were tested using an empirical analysis based on a questionnaire survey of 206 college students. The reliability was evaluated via Cronbach's alphas, the minimum of which was found to be 0.73, and therefore the questionnaire items are all deemed reliable. In addition, the results of confirmatory factor analysis (CFA) designed to check the validity of the measurement model indicate that the convergent, discriminate, and nomological validities of the model are all acceptable. The structural equation modeling analysis to test the hypotheses yielded the following results. Of the first six hypotheses (H1-1 through H1-6) designed to examine the relationships between each risk type and trust, three hypotheses including H1-1 (performance risk ${\rightarrow}$ trust), H1-2 (psychological risk ${\rightarrow}$ trust) and H1-5 (online payment risk ${\rightarrow}$ trust) were supported with path coefficients of -0.30, -0.27 and -0.16 respectively. Finally, H2 (trust ${\rightarrow}$ purchase intentions) was supported with relatively high path coefficients of 0.73. Results of the empirical study offer the following findings and implications. First. it was found that it was performance risk, psychological risk and online payment risk that have a statistically significant influence upon consumer trust in an online merchant. It implies that a consumer may find an online merchant untrustworthy if either the product quality or the product grade does not match his or her expectations. For that reason, online merchants including digital storefronts and e-marketplaces are suggested to pursue a strategy focusing on identifying the target customers and offering products that they feel best meet performance and psychological needs of those customers. Thus, they should do their best to make it widely known that their products are of as good quality and grade as those purchased from offline department stores. In addition, it may be inferred that today's online consumers remain concerned about the security of the online commerce environment due to the repeated occurrences of hacking or private information leakage. Online merchants should take steps to remove potential vulnerabilities and provide online notices to emphasize that their website is secure. Second, consumer's overall trust was found to have a statistically significant influence on purchase intentions. This finding, which is consistent with the results of numerous prior studies, suggests that increased sales will become a reality only with enhanced consumer trust.

Mediating Effects of Perceived Risk and Usefulness between Online Information Credibility and Intention to Use (온라인 정보의 신뢰성 및 정보 활용의도 사이의 지각된 위험과 유용성의 매개효과에 관한 연구)

  • Sun, Jonghak;Yoon, Jung-Hyeon
    • Management & Information Systems Review
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    • v.33 no.4
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    • pp.99-118
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    • 2014
  • Using the theory of attribution, this study investigates the determinants if controllability and explores underlying dimensions of online information credibility, and then investigates if the credibility of online information influences the users' intention to use the online information for evaluating or judging the involved products. Moreover, as a research attempt to investigate the impacts of online information credibility, this study examines whether the main effect of perceived online information credibility on the intention of using online information to make a decision of purchase is mediated by both perceived risk and perceived usefulness. A total of 287 survey forms were collected from online consumers. We examined reliability by exploring internal consistency of the multiple item scales in the overall sample. Convergent and discriminant validity were also examined for evidence of construct validity. Then, PLS technique was employed to test the research model. As a result of analyzing data from a dataset of 287 responses via PLS technique, it is found that (1) both sources (controllability and stability) of perceived credibility are significantly associated with both perceived risk and perceived usefulness, and (2) perceived risk as well as perceived usefulness partially mediate the link between the two sources of credibility and intention to use. The findings of this study also suggest that the two dimensions of online information credibility influence information recipient's intention to use. Moreover, the online information including descriptions about controllability and stability can trigger potential consumers to perceive risk about consumption of the informed products and services. Therefore, providing online information with highly described controllability and stability can increase not only the credibility of the online information itself, but also the intention to use the online information through perceived risk and usefulness.

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