Consumer adoption of online music services: the influence of perceived risks and risk relief strategies

Purpose – The aim of this paper is to offer insights into what consumers are looking for when downloading music and what different consumer groups might look for in commercial online music services, based on their current level of music downloading, and their likelihood of purchasing music online in the near future.Design/methodology/approach – The literature review focused on the risk and adoption theories. Interviews were used to help derive variables used in the design of a questionnaire. A web survey of 211 samples was used as a data collection method for this study.Findings – The results suggest that performance and time‐loss aspects of perceived risks are playing an important role, while social and psychological aspects of risks are of the least concern to consumers. Where different types of users are concerned, those with the most experience of downloading music are the least profitable segment to target. Non and Light downloaders, on the other hand, should be the focus of marketing activities, alt...

[1]  Thomas D. Wilson,et al.  Business use of the World-Wide Web , 1996, Inf. Res..

[2]  Ivan Ross Perceived Risk and Consumer Behavior: a Critical Review , 1975 .

[3]  S. Forsythe,et al.  Consumer patronage and risk perceptions in Internet shopping , 2003 .

[4]  Raj Arora Formulating direct marketing offers with conjoint analysis , 1991 .

[5]  J. Jacoby,et al.  Components of perceived risk in product purchase: A cross-validation. , 1974 .

[6]  M. Ness,et al.  Consumers' perceptions of mail‐order speciality foods , 1997 .

[7]  R. Cagliano,et al.  E‐business strategy , 2003 .

[8]  G. Walsh,et al.  Internet‐induced changes in consumer music procurement behavior: a German perspective , 2003 .

[9]  J. Bettman Perceived Risk and Its Components: A Model and Empirical Test , 1973 .

[10]  John Walsh,et al.  The internet: a new era in customer service , 2000 .

[11]  Sui Meng Poon,et al.  Factors influencing the types of products and services purchased over the Internet , 2000, Internet Res..

[12]  F. Schneider Trust in Cyberspace , 1998 .

[13]  Ali Yakhlef The Internet as a new locus for value creation , 1998 .

[14]  Ted Roselius Consumer Rankings of Risk Reduction Methods , 1971 .

[15]  David A. Griffith,et al.  A Content Analysis of Retail Web-Sites , 1998 .

[16]  Fiona E. Ellis-Chadwick,et al.  Retailer adoption of the Internet – Implications for retail marketing , 2000 .

[17]  A. Parasuraman,et al.  Service quality delivery through web sites: A critical review of extant knowledge , 2002, Journal of the Academy of Marketing Science.

[18]  V. Mitchell,et al.  A role for consumer risk perceptions in grocery retailing , 1998 .

[19]  V. Mitchell,et al.  Market Development Using New Products and New Customers: A Role for Perceived Risk , 1993 .

[20]  G. O'Connor,et al.  Early adopters of the Web as a retail medium: small company winners and losers , 1998 .

[21]  Kin-Fan Au,et al.  The process and consequences of supply chain virtualization , 2003, Ind. Manag. Data Syst..

[22]  B Andrew Cudmore,et al.  Working the Web. , 2003, Marketing health services.

[23]  A. Parasuraman,et al.  Marketing to and serving customers through the internet: An overview and research agenda , 2002 .

[24]  E. Rogers,et al.  Diffusion of innovations , 1964, Encyclopedia of Sport Management.

[25]  I. P. Akaah A conjoint investigation of the relative importance of risk relievers in direct marketing , 1988 .

[26]  John W. Atkinson,et al.  Introduction: Motivation , 1964 .

[27]  Donald T. Popielarz An Exploration of Perceived Risk and Willingness to Try New Products , 1967 .

[28]  Michel Laroche,et al.  Exploring How Intangibility Affects Perceived Risk , 2004 .

[29]  Leon G. Schiffman,et al.  Risk perception as a determinant of in-home consumption , 1976 .

[30]  Donald F. Cox,et al.  Perceived Risk and Consumer Decision-Making—The Case of Telephone Shopping , 1964 .

[31]  Isabelle Szmigin,et al.  Electronic Cash: A Qualitative Assessment of its Adoption , 1999 .

[32]  J. F. Engel,et al.  Perceived Risk in Mail-Order and Retail Store Buying , 1970 .

[33]  Gerald L. Lohse,et al.  A Classification of Internet Retail Stores , 1997, Int. J. Electron. Commer..

[34]  The Idiosyncracies of New Product Adoption for Technologically Innovative Offerings , 2001 .

[35]  L. Mai Effective Risk Relievers for Dimensional Perceived Risks on Mail-Order Purchase , 2001 .

[36]  E. Hirschman Innovativeness, Novelty Seeking, and Consumer Creativity , 1980 .

[37]  G. Foxall,et al.  Consumer Psychology for Marketing , 1994 .

[38]  Ken Jones,et al.  Internet retailing: current hype or future reality? , 1999 .

[39]  J. Jacoby,et al.  The Components of Perceived Risk , 1972 .

[40]  Patrali Chatterjee,et al.  Commercial Scenarios for the Web: Opportunities and Challenges , 1997, J. Comput. Mediat. Commun..

[41]  John B. Meisel,et al.  The impact of the Internet on the law and economics of the music industry , 2002 .

[42]  V. Mitchell Consumer perceived risk: conceptualisations and models , 1999 .

[43]  D. Midgley,et al.  Innovativeness: The Concept and Its Measurement , 1978 .