• Title/Summary/Keyword: Online shopping risk

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Effects of Shopping Orientation, Marketing Stimulus and Perceived Risk on E-impulse Buying of Shoes Markets (구두시장에서의 e-충동구매에 대한 쇼핑성향, 마케팅 자극과 위험지각의 영향)

  • Park, Eun Joo;Kim, Bo Kyung
    • Science of Emotion and Sensibility
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    • v.19 no.1
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    • pp.71-82
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    • 2016
  • Consumers tend to perceive the shoes as just their footwear to protect and comfort foot and fashion products to decorate and express their self-images. Even though online market research analysis indicated shoes consumption is important in daily life of consumers, there is limited research that was conducted specifically on shoes e-market. The research investigates the process of shoes' e-impulse buying focusing on the effects of shopping orientation, marketing stimulus and consumers' perceived risk in shoes market at Internet. A total of 408 self-administered questionnaires were obtained from universities students, who had experienced the e-impulse buying of shoes at least once for the last six months. Results confirmed that consumers who had higher hedonic shopping orientation or brand shopping orientation were more likely to consider the marketing stimuli (e.g., promotion stimuli and product stimuli), whereas consumers who had higher economic shopping orientation were consider the lower marketing stimuli and the more perceived functional risk in the e-shopping context of shoes. For shoes, marketing stimulus had directly positive effects on e-impulse buying, while consumers' perceived risk had no significant effects on e-impulse buying. The findings suggest that the market stimulus, which is affected by consumers' shopping orientation, is an important factor in triggering e-impulse buying of shoes.

Service Failure, Service Recovery Activity and Satisfaction with Online Shopping Channel of Apparel Products (온라인 의류쇼핑에서 서비스 실패 경험 후 쇼핑채널의 회복노력에 따른 채널만족도)

  • Kang, Eun Jung;Lee, Kyu-Hye
    • Journal of Digital Convergence
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    • v.11 no.2
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    • pp.115-125
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    • 2013
  • Unexpected consumer dissatisfaction emerges through rapid growth and expansion of on-line shopping channel. This research focused on the fashion online retail channels' negative aspect caused by service failure which possibly disappointed consumers. We also tried to seek for appropriate service recovery types based on frequently offered recovery types on-line. Data from college students were analyzed. Results indicate that fitting problem, insufficient information, product defect, inventory problem and slow delivery were the main service failure types in apparel e-shopping. Regression analysis identified that among these types, insufficient information, product defect, and slow delivery had significant influence on channel satisfaction after post recovery effort. Results also confirmed significant relationships between channel satisfaction and channel switching. Consumers perceived benefit level causes overall channel satisfaction level to rise while perceived risk leads to lower level of channel satisfaction. Choosing desirable service recovery activities in each service failure situations is necessary in order to raise consumer's channel satisfaction in online apparel shopping.

The Effect of the Products' Review on Consumers' Response

  • Feng, Zhou
    • The Journal of Industrial Distribution & Business
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    • v.7 no.2
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    • pp.13-20
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    • 2016
  • Purpose - The purpose of this research is to discover whether the presence of the product average rating introduces biases or change the way people perceive information. We posit that review's overall rating has a predisposition effect on consumers' perception towards detailed review information. Research design, data, and methodology - To test these hypotheses, we conducted an empirical study on a real-world setting of online shopping platform. We choose the Amazon website to test our results. The data we use were collected by the Stanford Network Analysis Project1 (McAuley et al., 2013). Results - With a dataset containing reviews of seven product categories from amazon.com., our findings could possess more generalizability as they are produced on the typical and influential online market. Second, as our research provides alternative views of consumers' shopping behavior, it is better to test our hypotheses by data from the same source. Conclusions - Our study reveals the impact of the collective rating presence on consumers' diagnosticity perception and sheds light upon some of the conflictive results in prior studies. Our research generates implications to both theories and business practices, and suggests future directions for the research question.

Service Failure Management on Internet Shopping Environment by Combining Service Blueprint and FMEA (서비스 청사진과 FMEA의 결합에 의한 인터넷 쇼핑몰 서비스 실패관리)

  • Lee, Hye-Jun;Lee, Dong-Il;Zhang, Yong
    • Journal of Korean Society for Quality Management
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    • v.39 no.2
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    • pp.217-233
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    • 2011
  • This paper introduces service failure management on internet shopping environment. The purpose of this study is to find and improve service failure modes at the time of customer's complaint thereby reducing that. To achieve this purpose, this study combines the Service Blueprint which describes the online shopping process and FMEA which finds each encounter of service failures and proposes how to recover them. First of all this study generates internet shopping process using Service Blueprint then matches customer's purchase decision making process and company's service provide process. After this process customer complaint types in real purchasing process are fell in according to their occurrence and more frequently occurred complaint is more risky. Finally 6 Risk Priority Numbers(unfair exchange/return policies, slow response/poor customer service support, purchase arrived later than promised/deliverly service dissatisfaction, dissatisfaction short period to take back/exchange/cancels order, A/S or handle defective item) are extracted and suggest their improvement.

Factors Affecting on Users' Intention in using Social Commerce and Online Shopping (소셜커머스와 온라인 쇼핑몰의 수용의도와 추천의도에 영향을 미치는 요인)

  • Sun, Zeng-Jun
    • The Journal of the Korea Contents Association
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    • v.14 no.3
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    • pp.352-360
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    • 2014
  • This study is based on the results from the previous one. It proved that perceived usefulness, perceived ease of use, perceived service quality, perceived risk are the independent variables. Research model and hypotheses by using the use intention and recommended intention as the dependent variable. The results were as follows: First, perceived usefulness and perceived service quality have positive effects on use intention and recommended intention. Second, perceived risk has negative effects on use intention and recommended intention. Third, the perceived ease of use has positive effect on use intention in Social Commerce, in contrast, it has no significant effect on use intention in Online Shopping. The results of this study presented the proposal for operators at social commerce area.

Motives for Reading Reviews of Apparel Product in Online Stores and Classification of Online Store Shoppers (의류상품 구매후기를 읽는 동기와 인터넷 점포 고객 유형화)

  • Hong, Hee-Sook
    • Journal of the Korean Society of Clothing and Textiles
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    • v.36 no.3
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    • pp.282-296
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    • 2012
  • This study identified the types of motives for reading consumer reviews of apparel products for online stores and classified shoppers into the groups based on motives. Data were collected from eleven Korean women by a focus group interview and from 313 females by an online survey. Respondents were in their 20s' and 30s' with significant experience reading consumer reviews of apparel products for online stores. The seven motives found by interviews were reduced to four types of motives by factor analysis: Right product choice and judgment of product value, risk reduction, saving time and money, and fun/killing time. The motive for the right product choice and judgment of product value was the highest and the motive for fun/killing time was the lowest. Consumers were classified into four groups based on motives: Utilitarian shoppers (25.8%), shopping-task oriented shoppers (36.8%), multiple-motive shoppers (19.7%), and moderate-motive shoppers (17.7%). There were significant differences among age groups and the amount of reading reviews posted on a product and the duration of reading reviews for online stores. In addition, managerial implications were developed.

Surrogate Internet Shopping Malls: The Effects of Consumers' Perceived Risk and Product Evaluations on Country-of-Buying-Origin Image (망상대구점(网上代购店): 소비자감지풍험화산품평개대원산국형상적영향(消费者感知风险和产品评价对原产国形象的影响))

  • Lee, Hyun-Joung;Shin, So-Hyoun;Kim, Sang-Uk
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.208-218
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    • 2010
  • Internet has grown fast and become one of the most important retail channels now. Various types of Internet retailers, hereafter etailers, have been introduced so far and as one type of Internet shopping mall, 'surrogate Internet shopping mall' has been prosperous and attracting consumers in the domestic market. Surrogate Internet shopping mall is a unique type of etailer that globally purchases well-known brand goods that are not imported in the market, completes delivery in the favor of individual buyers, and collects fees for these specific services. The consumers, who are usually interested in purchasing high-end and unique but not eligible brands, have difficulties to purchase these items overseas directly from the retailers or brands in other countries due to worries of payment failure and no address available for their usually domestic only delivery. In Korea, both numbers of surrogate Internet shopping malls and the magnitude of sales have been growing rapidly up to more than 430 active malls and 500 billion Korean won in 2008 since the population of consumers who want this agent shopping service is also expending. This etail business concept is originated from 'surrogate-mediated purchase' and this type of shopping agent has existed in many different forms and also in wide ranges of context level for quite a long time. As marketers face their individual buyers' representatives instead of a direct contact with them in many occasions, the impact of surrogate shoppers on consumer's decision making has been enormously important and many scholars have explored various range of agent's impact on consumer's purchase decisions in marketing and psychology field. However, not much rigorous research in the Internet commerce has been conveyed yet. Moreover, since as one of the shopping agent surrogate Internet shopping malls specifically connect overseas brands or retailers to domestic consumers, one specific character of the mall's, image of surrogate buying country, where surrogate purchases are conducted in, may play an important role to form consumers' attitude and purchase intention toward products. Furthermore it also possibly affects various dimensions of perceived risk in consumer's information processing. However, though tremendous researches have been carried exploring the effects of diverse dimensions of country of origin, related studies in Internet context has been rarely executed. There have been some studies that prove the positive impact of country of origin on consumer's evaluations as one of information clues in product manufacture descriptions, yet studies detecting the relationship between country image of surrogate buying origin and product evaluations rarely undertaken regarding this specific mall type. Thus, the authors have found it well-worth investigating in this specific retail channel and explored systematic relationships among focal constructs and elaborated their different paths. The authors have proven that country image of surrogate buying origin in the mall, where surrogate malls purchase products in and brings them from for buyers, not only has a positive effect on consumers' product evaluations including attitude and purchase intention but also has a negative effect on all three dimensions of perceived risk: product-related risk, shipping-related risk, and post-purchase risk. Specifically among all the perceived risk, product-related risk which is arisen from high uncertainty of product performance is most affected (${\beta}$= -.30) by negative country image of surrogate buying origin, and also shipping-related risk (${\beta}$= -.18) and post-purchase risk (${\beta}$= -.15) get influenced in order. Its direct effects on product attitude (${\beta}$= .10) and purchase intention (${\beta}$= .14) are also secured. Each of perceived risk dimension is proven to have a negative effect on purchase intention through product attitude as a mediator (${\beta}$= -.57: product-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.24: shipping-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.44: post-purchase risk ${\rightarrow}$ product attitude) as well. From the additional analysis, the paths of consumers' information processing are shown to be different based on their levels of product knowledge. While novice consumers with low level of knowledge consider only perceived risk important, expert consumers with high level of knowledge take both the country image, where surrogate services are conducted in, and perceived risk seriously to build their attitudes and formulate decisions toward products more delicately and systematically, which is in line with previous studies. This study suggests several pieces of academic and practical advice. Precisely, country image of surrogate buying origin does affect on consumer's risk perceptions and behavioral consequences. Therefore a careful selection of surrogate buying origin is recommended. Furthermore, reducing consumers' risk level is required to blossom this new type of retail business whether its consumer are novices or experts. Additionally, since consumer take different paths of elaborating information based on their knowledge levels, sophisticated marketing approaches to each group of consumers are required. For novice buyers strong devices for risk mitigation are needed to induce them to form better attitudes and for experts selections of better and advanced countries as surrogate buying origins are advised while endorsement strategy for the site might work as a reliable information clue to all consumers to mitigate the barriers to purchase goods online. The authors have also explained that the study suffers from some limitations, including generalizability. In future studies, tests of and comparisons among different types of etailers with relevant constructs are recommended to broaden the findings.

A Study on the Influencing Factors of Revisit Behavior in the Commercial Website (상업적 웹사이트 재방문 영향요인에 관한 연구)

  • 이상만;이국용
    • Journal of Information Technology Applications and Management
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    • v.11 no.1
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    • pp.137-159
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    • 2004
  • In the past days, most of studies about website and Online behavior have been mainly focused on the adoption of website and internet shopping or internet shopping mall. But the model of website revisit behavior has not been made and the leading theory of website usage behavior has not been existed. Lately, many researches on commercial website revisiting behavior are emphasizing the role of intention, attitude, satisfaction in online visiting behavior such as Jarvenpaa et al. [1997, 1999, 2000], Wang et al. [2001], Moon & Kim [2001], Heijden[2003], Sultan et al. [2002], Yoon [2000], Shankar et al. [2002a, 2002b], Mcknight et al. [2002], Chen & Dhillon [2003] and so on. The purpose of this paper is two-folds. The one is to find the affecting factors on the website users' revisit behavior in commercial website and the other is to search more influencing ones on the determinant factors, to analyze research model using in LISREL. The EFA and reliability test was executed by for finding the validity and reliability, covariance matrix analysis was executed for the purpose of testing the 13 hypotheses. The major finding of this paper would be summarized as followed : (1) The roles of satisfaction and attitude to the revisit behavior are very important and both variables have determining effects in commercial website revisit behavior. (2) The determining factors in positively affecting website users' satisfaction are attitude, perceived usefulness, design. (3) The determining factors in positively affecting website users' attitude are perceived usefulness, design, perceived ease of use, and negatively affecting factor was perceived risk in website.

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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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Examining the Moderating Effect of Involvement in the Internet Purchase Decision Process (인터넷 구매결정과정에서의 관여도의 조절효과에 관한 연구)

  • Kwahk, Kee-Young;Ji, So-Young
    • Asia pacific journal of information systems
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    • v.18 no.2
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    • pp.15-40
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    • 2008
  • With the explosive growth of the Internet, Internet shopping malls have become recognized as one of the major purchasing channels for consumers, as well as one of the competitive distribution channels for companies that allow them to contact with customers without intermediaries. It has motivated information systems(IS) researchers to examine the factors influencing consumer behavior and the purchase decision process in the context of Internet shopping malls. Despite the extensive research that has been conducted on the purchase decision process of consumers in online shopping malls, the results have demonstrated a need for further understanding of consumer behavior due to the unique features of virtual space and the characteristics of online consumers. Previous studies from marketing and consumer behavior domains have suggested that the concept of involvement plays an important role in explaining consumers' purchase behavior. Despite the critical role of involvement and the explosive growth of e-commerce, little research has examined the role of involvement in the Internet shopping mall context. With this motivation, this study has two research objectives. First, it introduces and tests an theoretical model capable of better explaining consumers' intention to purchase in the Internet shopping mall context. The proposed model extends and integrates existing models on purchase intention by incorporating purchase experience, innovativeness, and perceived self-control as the consumer factors, along with perceived risk, information provision, and perceived price as the Internet shopping mall factors. Second, this study examines how involvement differences may affect consumers' intention to purchase. For this purpose, two factors from involvement theory, involvement type and involvement level, are introduced into the research model as moderating variables. In order to test the proposed model, the overall approach employed was a field study using the structural equation model. We developed our data collection instrument by adopting existing validated questions wherever possible. All question items were measured with a seven-point, Likert-type scale, with anchors ranging from 'strongly disagree' to 'strongly agree.' Two IS researchers reviewed the instrument and checked its face validity. We collected empirical data for this study over a period of two weeks from subjects who had purchase experiences through Internet shopping malls. A total of 473 complete and valid responses were obtained. We carried out data analysis using a two-step methodology with AMOS 4.0. The first step in the data analysis was to establish the convergent and discriminant validity of the constructs. In the second step, we examined the structural model based on the cleansed measurement model. The empirical results partly support the proposed model and identify the moderating effect of involvement differences. Theoretical and practical implications of the study are discussed, along with its limitations.