Perceived risk and trust as antecedents of online purchasing behavior in the USA gemstone industry

Abstract

Purpose -The purpose of this study is to seek to investigate the impact that perceived risk and trust have on online purchasing behavior, in particular the nature of purchasing associations within the expensive, complex, high risk and credence products such as gemstones. Design/methodology/approach -An online survey of purchases of Thai gemstones was used to collect the data. Partial Least Squares was used to test the conceptual model of the study. Findings -The results of this study suggest that the type of internet marketing strategy used by the seller (the place strategy) and the buyer's privacy and security practices influence a buyer's perceived risk to purchase gemstones online. Furthermore, the study showed that perceived risk reduces trust and perceived risk reduces online purchases.Research limitations/implications -The implications of these results are that privacy and security concerns of online buyers must be addressed in order to reduce perceived risk and thereby increase trust which is fundamental to the amount purchased online. Practical implications -Online marketers of highly risky products need to consider that policies that promote trust and reduce risk are important means of increasing purchases. In particular, the use of multichannels will reduce perceived risk. Originality/value -This is a rare study which examines purchases of expensive, complex, high risk and credence products such as gemstones. It is also a study which examines the behaviour of organisational buyers. Also actual reported online purchases are investigated rather than just intent.

Conversion of Online Purchase Intention Into Actual Purchase: The Moderating Role of Transaction Security and Convenience

“…Online transaction is vulnerable to fraud, which potentially inflicts financial loss to online consumers. Financial risk predominantly inhibits consumers making an online purchase (D' Alessandro, Girardi, & Tiangsoongnern, 2012;Liu & Forsythe, 2010;Xu, Lin, & Shao, 2010); therefore, perceived risk theory is important in explaining online purchase behaviour.…”

Anteseden Intensi Belanja Pengguna Aplikasi/Website Toko Online Di Yogyakarta

“…"Harga tidak menguasai web, tetapi yang menguasai adalah kepercayaan" (Frederick & Phil, 2000). Oleh karena itu, kepercayaan adalah faktor penting dalam bisnis online (D'Alessandro et al, 2012;Frederick & Phil, 2000;Gefen et al, 2003;dan Ratnasingham, 1998) Melalui online shop, konsumen dapat membayar produk yang dipesannya dengan mudah karena umumnya online shop menyediakan beberapa saluran untuk pembayaran. Konsumen yang membeli dapat membayar melalui transfer bank, virtual account, kartu kredit, melalui vendor toko offline, mobile banking, deposit saldo, dan sebagainya.…”

Showing to friends or strangers? Relationship orientation influences the effect of social exclusion on conspicuous consumption

“…Jaehoon and Shrum (2012) found that the mechanism of direct and indirect exclusion is Finally, other factors might also influence conspicuous consumption through different motivations, which may bring about a need to further clarify these factors. For example, the signaling function in relationships (Wang & Griskevicius, 2014), product shape abnormalities (e.g., food; Loebnitz, Schuitema, & Grunert, 2015), perceived social value and perceived emotional value (Gong, D'Alessandro, & Johnson, 2016), social identification (McGowan, Shiu, & Hassan, 2017), perceived risk and trust (D'Alessandro, Girardi, & Tiangsoongnern, 2012), the need to have an opinion (Kokkoris & Kuehnen, 2015), green product attributes (Schuitema & Groot, 2015), and consumers' regulatory goals (Roy & Ng, 2012)…”