STRUCTURAL RELATIONSHIPS BETWEEN PERCEIVED RISK AND CONSUMERS UNWILLINGNESS TO BUY HOME APPLIANCES ONLINE WITH MODERATION OF ONLINE CONSUMER REVIEWS

This study aims to examine the effect of perceived risk factors (i.e. perceived performance risk, financial risk, time-loss risk, psychological risk and source risk) on consumers' unwillingness to buy home appliances online. The moderation of online consumer reviews with the relationship between perceived risk and consumers' unwillingness to buy home appliances online is also investigated. Results via the Structural Equation Modelling (SEM) technique revealed that perceived performance risk influences consumers' likelihood of not buying home appliances online, as the consumers are themselves unable to touch, see and hear the product. Online consumer reviews have also been found to moderate this relationship. The present study provides important practical contributions that allow retailers and internet marketers to understand consumers' perceptions and behaviours regarding consumer risk perception and to determine which type of risk is most important to address in order to increase the consumers' likelihood of buying home appliances online. This paper also presents a direction for future research.

[1]  J. Gotlieb,et al.  The Moderating Effects of Message Framing and Source Credibility on the Price-perceived Risk Relationship , 1994 .

[2]  G. Soutar,et al.  The Role of Perceived Risk in the Quality-Value Relationship: A Study in a Retail Environment , 1999 .

[3]  Nena Lim,et al.  Consumers' perceived risk: sources versus consequences , 2003, Electron. Commer. Res. Appl..

[4]  Allison W. Pearson,et al.  Conceptualization and Measurement of Perceived Risk in Online Shopping , 2006 .

[5]  Ali Khatibi,et al.  Factors determinate customer shopping behaviour through Internet: the Malaysian case , 2009 .

[6]  Hanjun Ko,et al.  Cross-Cultural Differences in Perceived Risk of Online Shopping , 2004 .

[7]  Marcel Creemers,et al.  Understanding online purchase intentions: contributions from technology and trust perspectives , 2003, Eur. J. Inf. Syst..

[8]  Yue Pan,et al.  Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews , 2011 .

[9]  Mary Ann Eastlick,et al.  An online prepurchase intentions model: The role of intention to search , 2001 .

[10]  Leo R. Vijayasarathy,et al.  Product characteristics and Internet shopping intentions , 2002, Internet Res..

[11]  Hans Stubbe Solgaard,et al.  Predicting online grocery buying intention: a comparison of the theory of reasoned action and the theory of planned behavior , 2004, Int. J. Inf. Manag..

[12]  Monika Kukar-Kinney,et al.  The determinants of consumers’ online shopping cart abandonment , 2010 .

[13]  Kuo-Kuang Chu,et al.  A Study of the Effect of Risk-reduction Strategies on Purchase Intentions in Online Shopping , 2008, Int. J. Electron. Bus. Manag..

[14]  Anthony D. Miyazaki,et al.  Reducing online privacy risk to facilitate e‐service adoption: the influence of perceived ease of use and corporate credibility , 2010 .

[15]  Stuart Dillon,et al.  Perceived Risk and the Internet Shopping Experience in Online Purchasing Behaviour , 2002 .

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

[17]  E. Chang,et al.  Research note: E-store image, perceived value and perceived risk , 2013 .

[18]  H. Okada,et al.  How Consumer Lifestyles Affect Purchasing Behavior: Evidence from Internet Shopping in Japan , 2007 .

[19]  R. Staelin,et al.  A Model of Perceived Risk and Intended Risk-handling Activity , 1994 .

[20]  Anne-Sophie Cases.  Perceived risk and risk-reduction strategies in Internet shopping , 2002 .

[21]  Sirkka L. Jarvenpaa,et al.  Consumer trust in an Internet store , 2000, Inf. Technol. Manag..

[22]  P. Mokhtarian,et al.  The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature , 2005 .

[23]  F. Ghaffari,et al.  A Study of the Role of Perceived Risk and User Characteristics in Internet Purchase Intention , 2010 .

[24]  Á. H. Crespo,et al.  The influence of perceived risk on Internet shopping behavior: a multidimensional perspective , 2009 .

[25]  Ilyoo B. Hong,et al.  The mediating role of consumer trust in an online merchant in predicting purchase intention , 2013, Int. J. Inf. Manag..

[26]  Paul A. Pavlou,et al.  Predicting E-Services Adoption: A Perceived Risk Facets Perspective , 2002, Int. J. Hum. Comput. Stud..

[27]  J. Hair.  Multivariate data analysis : a global perspective , 2010 .

[28]  David M. Shannon,et al.  Development of a scale to measure the perceived benefits and risks of online shopping , 2006 .

[29]  Thompson S. H. Teo,et al.  Assessing the consumer decision process in the digital marketplace , 2003 .

[30]  Ainsworth Bailey,et al.  Consumer Awareness and Use of Product Review Websites , 2005 .

[31]  Rosdiana Dewi Siringoringo.  Why Consumers Hesitate to Shop Online: An Experimental Choice Analysis of Book Shopping and The Role of Delivery Fees , 2009 .

[32]  Jie Sun,et al.  User reviews and uncertainty assessment: A two stage model of consumers' willingness-to-pay in online markets , 2013, Decis. Support Syst..

[33]  Do-Hyung Park,et al.  eWOM overload and its effect on consumer behavioral intention depending on consumer involvement , 2008, Electron. Commer. Res. Appl..

[34]  Harmen Oppewal,et al.  Why consumers hesitate to shop online: An experimental choice analysis of grocery shopping and the role of delivery fees , 2006 .

[35]  YE Naiyi,et al.  Dimensions of Consumer's Perceived Risk in Online Shopping , 2004 .

[36]  X. Zhang,et al.  Impact of Online Consumer Reviews on Sales: The Moderating Role of Product and Consumer Characteristics , 2010 .

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

[38]  Clay M. Voorhees,et al.  Conveying Trustworthiness to Online Consumers: Reactions to Consensus, Physical Store Presence, Brand Familiarity, and Generalized Suspicion , 2010 .

[39]  Fernando R. Jiménez,et al.  Too Popular to Ignore: The Influence of Online Reviews on Purchase Intentions of Search and Experience Products , 2013 .

[40]  Hyo-Joo Han,et al.  Psychological antecedents and risk on attitudes toward e-customization , 2013 .

[41]  Ann E. Schlosser.  Can including pros and cons increase the helpfulness and persuasiveness of online reviews? The interactive effects of ratings and arguments ☆ , 2011 .