• Fashion & Textile Research Journal
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• v.21 no.6
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• pp.743-753
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• 2019

This study investigates differences in demographic characteristics, shopping orientation, perceived risk, and satisfaction after purchase among consumer types. This study classifies consumer types according to their channel transition behaviors between the online and offline channels with a focus on the steps of information research and buying decision in buying decision-making process. The four consumer groups are as follows: off-off type (offline research-offline purchase), on-on type (online research-online purchase), on-off type (online research-offline purchase) and on/off-off type (online and offline research-offline purchase), off-on type (offline research-online purchase) and on/off-on type (online and offline research-online purchase). Data were collected from adults over 20 years old who had bought clothes within one year. The questionnaire was carried out from July, 2019 using a professional internet research panel; in addition, 500 sets of useful data were analyzed by descriptive statistics, factor analysis, reliability analysis, chi-squared test, ANOVA and Duncan-test using SPSS 21.0. The findings showed significant differences among the classified consumer groups for consumer demographics, shopping orientation, perceived risk, and purchase after satisfaction. The results imply that consumers show a variety of channel transition behaviors based on demographic variables, shopping orientation, and perceived risk. Understanding and adapting to consumer purchase behaviors will allow company distribution channels to be effectively managed and eventually increase consumer satisfaction as well as company sales volume.

• Journal of the Korean Home Economics Association
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• v.23 no.1
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• pp.49-57
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• 1985

The central problem of purchasing houses is choice, which is accompanied by perception of risk. Perceived risk is defined as a risk perceived by a consumer subjectively in choice situations. The components of perceived risk are uncertainty and consequence. There are seven types of perceived risk in purchasing houses. Those are financial risk, functional risk, social risk, psychological risk, physical risk, time risk and future opportunity lost risk. The empirical survey about comsumer's purchasing Public Apartment suggests : 1) In general, rspondents perceive relatively high risk in purchasig Public Apartment. 2) Of seven risk types, financial, functionalm, future opportunity lost, time, and social risk correlate highest with overall perceived risk and explain the variance of it. 3) Physical and psychological risks don't correlate significantly with overall perceived risk. From the findings in empirical analysis, consumers are recommended to device riskreduction activities in purchasing Public Apartment. 1. Active information search is needed in purchasing Public Apartment in order to reduce overall perceived risk. 2. Housing concept should change from ownership to rental thinking. 3. Consumers should be accustomed to Housing Loans by bank. 4. Purchasing goals should be established clearly before purchasing houses. 5. Careful deliberation is required and informations from personal sources are useful.

• Asia pacific journal of information systems
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• v.23 no.4
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• pp.103-128
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• 2013

When a consumer needs a product or service and multiple sellers are available online, the process of selecting a seller to buy online from is complex since the process involves many behavioral dimensions that have to be taken into account. As a part of this selection process, consumers may set minimum trust expectation that can be used to screen out less trustworthy sellers. In the previous research, the level of consumers' trust expectation has been anchored on two important factors: product involvement and perceived risk. Product involvement refers to the extent to which a consumer perceives a specific product important. Thus, the higher product involvement may result in the higher trust expectation in sellers. On the other hand, other related studies found that when consumers perceived a higher level of risk (e.g., credit card fraud risk), they set higher trust expectation as well. While abundant research exists addressing the relationship between product involvement and perceived risk, little attention has been paid to the integrative view of the link between the two constructs and their impacts on the trust expectation. The present paper is a step toward filling this research gap. The purpose of this paper is to understand the process by which a consumer chooses an online merchant by examining the relationships among product involvement, perceived risk, trust expectation, and intention to buy from an e-tailer. We specifically focus on the mediating role of perceived risk in the relationships between enduring product involvement and the trust expectation. That is, we question whether product involvement affects the trust expectation directly without mediation or indirectly mediated by perceived risk. The research model with four hypotheses was initially tested using data gathered from 635 respondents through an online survey method. The structural equation modeling technique with partial least square was used to validate the instrument and the proposed model. The results showed that three out of the four hypotheses formulated were supported. First, we found that the intention to buy from a digital storefront is positively and significantly influenced by the trust expectation, providing support for H4 (trust expectation ${\rightarrow}$ purchase intention). Second, perceived risk was found to be a strong predictor of trust expectation, supporting H2 as well (perceived risk ${\rightarrow}$ trust expectation). Third, we did not find any evidence of direct influence of product involvement, which caused H3 to be rejected (product involvement ${\rightarrow}$ trust expectation). Finally, we found significant positive relationship between product involvement and perceived risk (H1: product involvement ${\rightarrow}$ perceived risk), which suggests that the possibility of complete mediation of perceived risk in the relationship between enduring product involvement and the trust expectation. As a result, we conducted an additional test for the mediation effect by comparing the original model with the revised model without the mediator variable of perceived risk. Indeed, we found that there exists a strong influence of product involvement on the trust expectation (by intentionally eliminating the variable of perceived risk) that was suppressed (i.e., mediated) by the perceived risk in the original model. The Sobel test statistically confirmed the complete mediation effect. Results of this study offer the following key findings. First, enduring product involvement is positively related to perceived risk, implying that the higher a consumer is enduringly involved with a given product, the greater risk he or she is likely to perceive with regards to the online purchase of the product. Second, perceived risk is positively related to trust expectation. A consumer with great risk perceptions concerning the online purchase is likely to buy from a highly trustworthy online merchant, thereby mitigating potential risks. Finally, product involvement was found to have no direct influence on trust expectation, but the relationship between the two constructs was indirect and mediated by the perceived risk. This is perhaps an important theoretical integration of two separate streams of literature on product involvement and perceived risk. The present research also provides useful implications for practitioners as well as academicians. First, one implication for practicing managers in online retail stores is that they should invest in reducing the perceived risk of consumers in order to lower down the trust expectation and thus increasing the consumer's intention to purchase products or services. Second, an academic implication is that perceived risk mediates the relationship between enduring product involvement and trust expectation. Further research is needed to elaborate the theoretical relationships among the constructs under consideration.

• Journal of Information Technology Services
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• v.12 no.3
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• pp.73-93
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• 2013

This paper is a research on perceived risk of social commerce which has influence on purchase intention. This study uses a 3-dimension concept of perceived risk and then, deals with influencing a purchase intention. In addition, to search other influential variable to purchase intention, this study adds a variable with expected moderating effect. This study proposes several hypothesis and processes an experiment to test and attest these hypothesis. This study attempts to analyze the effect that perceived risk in social commerce has on purchase intention. By the results of data analysis, all dimensions of perceived risk are found to have significant negative effects on purchase intention. In addition, this study proves moderating roles of valence of WOM Information on purchase intention. Additional managerial implications are also discussed.

• 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.

• 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.

• 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).

• Journal of Korea Trade
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• v.25 no.6
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• pp.20-33
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• 2021

Purpose - The growth in consumers' online shopping has even been accelerated by the COVID-19 pandemic. While the purchase can be made from any countries online, the purpose is to examine the effect of the country of the online retailer (COOR) on consumers' perceived risk and purchase motivation, focusing on the retailer not on the brand. Design/methodology - Survey data from online shoppers are analized using the structural equation model. Findings - COOR, like COO of the brand manufacturer, positively affect consumer's purchase intension. First, the images and the perceived psychic distances of the COOR affects both perceived risk and purchase confidence. Secondly, this perceived risk and confidence they put on the transaction then affect the purchase intension of the consumer. Originality/value - We show that the quality of the signal comes not only from the manufacturer-branded product item itself with a certain COO, but also from the retailer who carries it.

• Korean Journal of Human Ecology
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• v.23 no.5
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• pp.873-890
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• 2014

The purpose of this study was to examine the relationship among consumer's perceived risk of apparel purchase in internet shopping mall, control, and impulse buying. The subjects were 319 female college students in Gyeongsang provinces. The obtained data were analyzed by reliability analysis, analysis of frequency, factor analysis, cluster analysis, one-way ANOVA, Duncan's multiple range test, correlation analysis, and t-test. The major results of this study were as follows: First, three factors of consumer's perceived risk of apparel purchase in internet shopping mall were identified: size risk, trust risk, and social/psychological risk. Second, the subjects were categorized into three different types of groups according to perceived risk: high perceived risk type, middle perceived risk type, and low perceived risk type. Third, three control(self-control, goal-control, and desire for control) and three impulse buying(impulsive buying for showing off, impulsive buying for excitement, and impulsive buying due to memory) were identified. Fourth, there was significant difference between strong control group and weak control group on three factors of impulse buying. Fifth, a significant positive correlation was found size risk and three factors of control and a significant negative correlation was found self-control and three factors of impulse buying.

• Journal of the Korean Home Economics Association
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• v.40 no.5
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• pp.179-193
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• 2002

This study aims to examine the forming procedure of consumer satisfaction from Internet shopping experience. Many studies on the satisfaction have primarily focused on the examination of the antecedents of satisfaction along with the expectation-disconfirmation paradigm dominating the former studies. This study has built an Internet shopping expectation-disconfirmation model as to apply the expectation-disconfirmation into the condition of the Internet shopping. The summary of study represented in following. l. The expectation of risk and performance of benefit had a significantly positive effect on the perceived disconfirmation. In addition, an expectation of benefit and performance of risk had a significantly negative effect on the perceived disconfirmation. 2. A performance of risk and performance of benefit not only had a significantly indirect effect, but also a significantly direct effect on the consumer satisfaction. But expectation of risk and expectation of benefit had no significant direct effect on satisfaction. 3. Not only the perceived disconfirmation had a significant positive effect on satisfaction, but also an effect of the perceived disconfirmation on satisfaction(0.472) is larger than that of the performance of risk or performance of benefit. Meaning that, it is desirable for one to apply the expectation-disconfirmation model into the Internet shopping circumstances as much as the off-line markets.