• Title/Summary/Keyword: consumer risk

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An Empirical Study on the Determinants of e-Trust in Internet Shopping Mall -Focuse on Comparing Import Agency Service Mall with General Internet Shopping Mall- (인터넷쇼핑몰에서 e-Trust 결정요인에 관한 연구 - 수입대행몰과 일반쇼핑몰 비교를 중심으로 -)

  • Song, Sun-Yok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.43
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    • pp.423-453
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    • 2009
  • Import Agency Service Mall, which provide customers not only with convenient shopping experiences but also with purchasing, warehousing, shipping, and customs clearance services, have been playing a significant role in rapidly transforming Korean consumers into global consumers. The consumers' great demand for foreign goods(services) created Import Agency Service Mall(referred to hereafter as IASM) as a new business model of distribution and consumption, which seems to grow rapidly. Accordingly, this study examined the e-Trust by analyzing the characteristics of IASM, determinants of trust, risk perception and its association with e-Trust in IASM, and finally applying the result to general internet shopping mall(referred to hereafter as GISM). The following results came out from the analysis: First, from the result of checking these two types of internet shopping mall consumers have different determinants of trust. Second, from the question if two types perceive different risk, purchasing the foreign goods, it came out that they showed critical difference in variable relevant to goods delivery and customer service. IASM perceived risk from those two variables more than GISM Third, from the review of the relationships between determinants of trust and risk perception variables, IASM showed interrelation among all the variables except between customer service and perceived risk. Fourth, the researcher examined how the risk perceived in the course of purchasing goods has an effect on consumers e-Trust. In case of IASM, risk perception relevant to customer service had an effect on consumer e-Trust. To the contrary, incase of GISM, risk perception didn't have any effect on e-Trust. Finally, from the review of interrelation between determinants of trust and consumer e-Trust, it came out that for IASM capability had an effect on consumer e-Trust and for GISM consumer service had an effect on consumer e-Trust.

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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.

Model of Clothing Brand Loyalty Formation (의류제품에 대한 상표충성형성 모델)

  • 진병호;고애란
    • Journal of the Korean Society of Clothing and Textiles
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    • v.20 no.3
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    • pp.502-511
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    • 1996
  • While much research on brand loyalty have been conducted until now, little has been challenged to integrate the results of previous (studies and how the brand loyalty is developed. The purpose of this study was to) suggest and test the model of clothing brand loyalty formation via consideration of all related variables simultaneously using the LISREL. The subjects were 505 male and female college graduates or higher white collar workers in their twenties and thirties living in Seoul, Korea. The data were collected by self- administered questionnaires. The results showed that consumer knowledge, product involvement, and perceived risk are positively related to information search. However, the influence of perceived risk on information search is statistically insignificant. Product involvement is also positively related to consumer satisfaction. Information search and consumer satisfaction are positively related to brand loyalty, respectively. In conclusion, consumer knowledge, product involvement, and perceived risk have positive influences on brand loyalty through the mediating variables of information search and consumer satisfaction.

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Measuring the Effects of Trust, Knowledge, Optimism, Risk and Benefits on Consumer Attitudes toward Genetically Modified Foods in the Jeonnam Area (전남지역에서 신뢰, 지식, 낙관성, 위험과 편익이 유전자 변형 음식에 대한 태도에 미치는 효과 측정)

  • Kang, Jong-Heon;Jeong, Hang-Jin
    • Journal of the Korean Society of Food Culture
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    • v.23 no.4
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    • pp.421-426
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    • 2008
  • The purpose of this study was to measure the effects of trust, knowledge, optimism, risk and benefits on consumer attitudes toward genetically modified foods. A total of 326 questionnaires were completed. Moderated regression analysis was used to measure the relationships among the variables. The analysis results for the data indicated a good model fit in Model 2 rather than Model 1, in which the direct effects of trust, optimism and benefits had statistically significant direct effects on the respondents' attitudes toward genetically modified foods, while the direct effects of knowledge and risk were not statistically significant. As expected, the interaction term of risk and benefit had a significant effect on consumer attitude. Moreover, the effect of risk on consumer's attitude toward genetically modified foods was statistically significant at all levels of benefit, except at the lower benefit level. Finally, the results of this study indicated that genetically modified food developers and marketers should attach importance to the interaction effect of benefits to understand the elements of market demand and customer loyalty.

Consumer Resistance to Smartwatches: Gender and Age Differences (스마트 워치 소비자 저항에 영향을 미치는 요인: 수용 보류 집단의 성별, 연령별 집단 차이 비교)

  • Kim, Hyo-Jung;Rha, Jong-Youn
    • The Journal of the Korea Contents Association
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    • v.17 no.12
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    • pp.447-460
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    • 2017
  • The purpose of this study is to investigate the factors affecting consumer resistance of smart watches, focusing on consumer groups. SPSS 19.0 was used to conduct a descriptive analysis and multi regression analysis of the data. This study is based on the questionnaire data of 407 consumers. The results of this study are as follows. First, the relative advantage was identified as a factor in reducing consumer resistance across all gender and age groups. Second, complexity has been identified as a factor that increases the consumer resistance of female consumers, and consumer groups in their 20s and 40s. Third, esthetics was found to reduce consumer resistance in men, women, and the consumer group in their 20s. Fourth, subjective norms were identified as a factor reducing consumer resistance in women and in consumer groups in their 20s and 30s. Fifth, the risk of privacy was identified as a factor in increasing consumer resistance in men and the consumer group in their 40s. The results of this study can be helpful to understand consumer resistance to smartwatches.

Effects of the Perceived Risk on the Consumers′ Purchase Attitudes in the Internet Shopping Malls (인터텟 쇼핑몰에서 소비자의 지각된 위험이 구매 태도에 미치는 영향)

  • 정인근;김윤호
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2001.10a
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    • pp.184-187
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    • 2001
  • The purpose of this study is to find the perceived risk which influences consumers' purchase attitudes so that consumers' participation in electronic commerce could be enhanced. Consumer behavior involves risk in the sense that any action of a consumer will produce consequences which one cannot anticipate, and some of which are at least likely to be unpleasant. The types of perceived risks are financial risk, performance risk, social risk, psychological risk, time loss, opportunity loss, privacy risk, fashion loss, delivery risk, seller's response risk and seller's fraud risk The findings are as follows: $\circled1$ The financial risk, performance risk, time loss, delivery risk, seller's response risk and seller's fraud risk have negative effects on the consumers' purchase attitudes. $\circled2$ There is no difference in the level of perceived risk according to the demographic factors such as age, education and income level.

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An Analysis of the Relationships Among Financial Risk Components (가계 재무위험 구성요소들의 관계분석)

  • Jeong Woonyoung;Kim Kyungia
    • Journal of the Korean Home Economics Association
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    • v.42 no.10 s.200
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    • pp.11-22
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    • 2004
  • The purpose of this study was to examine the structure of financial risk components of households. The financial risk of households was assumed to be composed of risk knowledge, risk attitude and risk management behavior. For this study, a questionnaire was developed and distributed to 700 households in Seoul and Kwangju, and there were 495 responses with usable data. The findings showed that income stability had a positive relationship with the level of risk knowledge and risk attitude. Income stability, household debt, age of the youngest child and risk knowledge were found to have direct effects on risky vs. non-risky asset ratio. Income stability, savings, age of the youngest child and risk knowledge also had significant effects on the number of risky assets owned by households. Risk knowledge was the most important determinant of risk management behavior.

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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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.

Consumer Acceptance of E-Commerce in Korea and China;The Effects of National Culture

  • Yoon, Cheol-Ho
    • 한국경영정보학회:학술대회논문집
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    • 2007.11a
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    • pp.565-570
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    • 2007
  • With e-commerce becoming international, understanding the effects of national culture in consumer acceptance of e-commerce is required. This study examines consumer e-commerce acceptance in Korea and China. The research model consisting of perceived usefulness, perceived ease of use, trust and perceived risk was proposed, and the hypotheses based on Hofstede's cultural dimensions of power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance and long-term orientation, were established. The results show that perceived usefulness contributes less to consumer acceptance of e-commerce in China than it does in Korea. In addition, perceived ease of use contributes more to consumer acceptance of e-commerce in China. Trust contributes significantly to consumer acceptance of e-commerce in both countries, but perceived risk didn't influence consumer acceptance of e-commerce in either country. The contribution of this study is to provide strategic insights for successfully managing cross-cultural e-commerce.

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