Consumers’ perceived risk: sources versus consequences

Lim, Nena

doi:10.1016/s1567-4223(03)00025-5

Cited by 456 publications

(360 citation statements)

References 36 publications

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“…Online consumers are concerned about information asymmetries between buyers and sellers, privacy concerns, system security shortcomings, immature legal protection mechanisms, low investment in infrastructure, the inability to sufficiently inspect goods prior to purchase, and fraud [58,68,80]. Given these concerns, consumers are increasingly required to assess the trustworthiness of vendors and the quality of products without many of the cues present in more traditional commercial transactions [1,59,62]. For example, online consumers cannot easily inspect the products they are about to purchase or meet with the vendor before the transaction, which may create a high degree of uncertainty about the outcome of the purchase.…”

Section: The Role Of Risk and Information Seeking In Consumer Behaviormentioning

confidence: 99%

Mitigating risk in ecommerce transactions: perceptions of information credibility and the role of user-generated ratings in product quality and purchase intention

Flanagin

Metzger

Pure

et al. 2014

Electron Commer Res

206

116

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Although extremely popular, electronic commerce environments often lack information that has traditionally served to ensure trust among exchange partners. Digital technologies, however, have created new forms of "electronic word-of-mouth," which offer new potential for gathering credible information that guides consumer behaviors. We conducted a nationally representative survey and a focused experiment to assess how individuals perceive the credibility of online commercial information, particularly as compared to information available through more traditional channels, and to evaluate the specific aspects of ratings information that affect people's attitudes toward ecommerce. Survey results show that consumers rely heavily on web-based information as compared to other channels, and that ratings information is critical in the evaluation of the credibility of online commercial information. Experimental results indicate that ratings are positively associated with perceptions of product quality and purchase intention, but that people attend to average product ratings, but not to the number of ratings or to the combination of the average and the number of ratings together. Thus suggests that in spite of valuing the web and ratings as sources of commercial information, people use ratings information suboptimally by potentially privileging small numbers of ratings that could be idiosyncratic. In addition, product quality is shown to mediate the relationship between user ratings and purchase intention. The practical and theoretical implications of these findings are considered for ecommerce scholars, consumers, and vendors.Keywords Ecommerce · Credibility · User-generated content · Amazon · Product ratings · Electronic word of mouth · Information credibility · Purchase intention · Product quality · User ratings People are increasingly relying on web-based commercial information for electronic commerce ("ecommerce") transactions that range from small personal items to home purchases [45]. Retail ecommerce sales in the U.S. currently constitute roughly 4 % of total retail sales, which translates to almost 40 billion dollars annually [10]. The number of Americans who have purchased a product online has steadily increased since 2000, and a majority (66 %) now report having made at least one online purchase [46]. An even larger percentage (93 %) has used the Internet for ecommerce-related activities, including researching information about a product they are thinking of buying, with more than a quarter of Americans reporting they do this on a daily basis [49]. In fact, over the last decade the number of people either researching or buying a product or service online has nearly doubled, a trend that holds true across a wide range of ecommerce-related activities [45].Despite its popularity, online commercial transactions often lack elements that have traditionally served to ensure trust and credibility among exchange parties. Indeed, varying "patronage modes" embody different levels of risk for the consumer, which incr...

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Section: The Role Of Risk and Information Seeking In Consumer Behaviormentioning

confidence: 99%

Mitigating risk in ecommerce transactions: perceptions of information credibility and the role of user-generated ratings in product quality and purchase intention

Flanagin

Metzger

Pure

et al. 2014

Electron Commer Res

206

116

View full text Add to dashboard Cite

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“…Any uncertainty or unfavorable result that consumers perceive is subjectively an expected loss (Sweeney, Soutar, & Johnson, 1999). Perceived risk can be defined as the characteristics and sum of the risk that consumers expect from particular purchase behavior (Lim, 2003). Consumers' perceived risk is multi-dimensional (Roselius, 1971).…”

Section: Green Marketing Awareness and Perceived Riskmentioning

confidence: 99%

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

Wu¹,

Chen²

2014

IJMS

135

108

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With the rise of eco-awareness and innovation in recent years, companies have constantly sought to be the first to introduce new green-concept products to the market to gain a larger market share. However, it is unclear whether consumer awareness of green marketing and innovation will increase purchase intention. This issue requires an in-depth discussion. This study uses energy-saving lamps and environmental cleanser as examples, using a literature review and empirical research to explore the correlations between consumer awareness of green marketing, perceived innovation, perceived quality, perceived price, perceived risk, perceived value, and purchase intention. Further, an overall relationship model is established.An analysis of 320 effective questionnaires about energy-saving lamp and 310 effective questionnaires about an environmental cleanser resulted in three main findings: (1) Consumers' green marketing awareness of both energy-saving lamp and an environmental cleanser mainly influences their perceived quality and perceived value, which in turn influence purchase intention. (2) Consumers' perceived innovation of energy-saving lamp mainly influences their perceived quality, perceived price, and perceived value, while consumers' perceived innovation of an environmental cleanser mainly influences their perceived quality and perceived value, all of which in turn influence purchase intention. (3) The results for the two products indicate that the impact of consumers' green marketing awareness on purchase intention is greater than the impact of perceived innovation. Through SEM analysis, this study establishes a valid relationship model for green products and identifies the main influence paths. In addition, measurement variables and a scale were established, which provide academics and industry with critical research tools and concepts that should be of academic and practical value.

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“…Purchase intention Fishbein (1975) thinks that customer purchase intention refers to the subjective probability of buying behavior (Fishbein M, Ajzen I., 1975), Mullet (1985) thinks that purchase intention is formed by the subjective choice of consumers in the process of cognition of products through the stimulation of external conditions (Gary M. Mullet & Marvin Karson), Nena (2003) proposed that the purchase intention will directly affect the purchase behavior, which is the direct indicator of the purchase behavior of the customer (Nena Lim, 2003). It is defined as whether the consumer is willing to understand the product or not, whether there is a purchase intention or not, combined with the characteristics of the social media, it selects the point strike link, the purchase, and the purchase of other platforms.…”

Section: Brand Attitudementioning

confidence: 99%

The Impact of Advertising Appeals on Purchase Intention in Social Media Environment——Analysis of Intermediary Effect Based on Brand Attitude

He¹,

Qu²

2018

JBAR

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Social media, represented by WeChat and micro-blog, has become an indispensable communication tool for human beings. The social media advertising that extends in this environment has also become the focus of enterprise marketing. Based on the brand attitude as the intermediary variable, this paper studies the influence of advertising appeal on the purchase intention under the socialized media environment, and tries to clarify the influence mechanism between the advertising appeal and the consumer purchase intention. Through the related literature, we find out the relationship between the advertising appeal and the brand state and the purchase intention. Put forward relevant research proposals, to enterprises in the social media environment advertising marketing pointed out a new direction.

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Consumers’ perceived risk: sources versus consequences

Cited by 456 publications

References 36 publications

Mitigating risk in ecommerce transactions: perceptions of information credibility and the role of user-generated ratings in product quality and purchase intention

Mitigating risk in ecommerce transactions: perceptions of information credibility and the role of user-generated ratings in product quality and purchase intention

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

The Impact of Advertising Appeals on Purchase Intention in Social Media Environment——Analysis of Intermediary Effect Based on Brand Attitude

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