Risk, trust, and consumer online purchasing behaviour : a Chilean perspective

Purpose: The purpose of this study is to investigate Latin American online purchase behaviour with a specific focus on the influence of perceived risk and trust. While studies of this nature have been conducted quite extensively in developed countries, their application in developing countries, such as Latin America is limited. Our study addresses this gap in the literature with an empirical study conducted in Chile. Design/methodology/approach: The authors develop and test a proposed model of the influence of consumer’s perceptions of risk and trust on their attitudes and intentions to purchase on the Internet. An online survey method is used. The sample consists of 176 Chilean consumers who have made at least one purchase online. The data is analysed using structural equation modelling technique (SEM). Findings: The analysis revealed that of the perceived risk and trust factors examined, trust in third party assurances and a cultural environment of trust had the strongest positive influence on intentions to continuing purchasing online. Perceived risk had an inverse relationship with attitude and consumers’ attitude has a positive influence on intentions to purchase online. Trust in online vendors and a propensity to trust were both insignificant. Practical implications: Practically, these results identity which risk and trust beliefs towards purchasing online have the most effect thereby providing insights into how companies should seek to mitigate perceptions of risk to encourage new and return purchasers. Additionally, this research shows that consumers in a Latin American country, recognised as a collectivist, high risk avoidance culture, are willing to make purchases online despite the risks involved. Originality/value: The study and its results is one of few available that consider a Latin American context. The value of the findings provides insights into the specific risk and trust factors that influence Chilean consumers when considering purchasing online. The tested model adds value not only to the literature on Latin American consumer behaviour but also provides guidance for companies offering online retailing facilities in these less developed countries.

Trust considerations on attitudes towards online purchasing: The moderating effect of privacy and security concerns

The research examines the relationships between three common trust considerations (vendor, Internet and third parties) and attitudes towards online purchasing. The study incorporates privacy and security concerns as a moderating variable and finds that these relationships vary depending on the level of concerns a consumer has when purchasing online. The study suggests that "fears" surrounding the Internet as a place to do business still hinder the use of it for e-commerce purposes, but that the presence of a reputable agent might in some manner mitigate this risk. In the context of business to consumer relationships trust in the vendor is important for the consumer to accept any risk associated with a transaction. Theoretical implications for online customer behavior theory are also discussed. © 2009 Elsevier Inc.

Consumers' accounts of perceived risk online and the influence of communication sources

The purpose of this paper is to extend marketing knowledge into perceived risk in online transactions beyond the current positivistic, hypotheses-driven research by providing qualitative insights into how individuals construct their accounts of perceived risk online. Additionally, the study reported in this paper aims to explore how communication sources influence both these subjective constructions and individuals' behavioural experiences with transaction activity on the web. Design/methodology/approach - The study was developed within a grounded theory method.Ten in-depth interviews were conducted which were analysed using constant comparison of incidents procedures to provide rich descriptions of the interviewees' subjective perceptions and lived experiences with online transaction activity. Findings - The findings provide insights into how the human clement is present in individuals'perceptions and constructions of their accounts of the risk involved online.The findings also identify the influence of mass communication sources on the construction of these accounts. The study provides insights into whether change agent communication sources, such as marketers or web designers,influence consumers' behaviours towards online transaction activity through mediating their perceptions of the risks involved. The study also reveals how social communication networks influence the interviewees' decisions to use the web (or transaction activities, in particular online purchasing, and how the group in this study might act as a communication source to influence others. Research limitations/Implications - While the findings cannot be generalised to the internet population overall, the sample used was able to provide relevant information regarding the phenomenon of interest. Future research should continue to examine perceived risk and the influence of communications sources, such as e-mail, discussion groups and virtual communities. Originality/value - The value of the paper lies in permitting the participants to account for perceived risk for themselves. The findings ex.plore what this means at increasing levels of personal relevance and the influence of communication sources to create, sustain or mediate perceptions of this phenomenon.

Online grocery shopping: The impact of shopping frequency on perceived risk

Online grocery shopping has enjoyed strong growth and it is predicted this channel will continue to grow exponentially in the coming years. While online shopping has attracted an abundance of research interest, examinations of online grocery shopping behaviour are only now emerging. Shopping online for groceries differs considerably from general online shopping due to the perishability and variability of the product, and frequency of the shopping activity. Two salient gaps underpin this research into online grocery shopping. This study responds to calls to investigate the online shoppers’ experience in the context of online purchasing frequency. Second, this study examines the mediating effect of perceived risk between trust and online repurchase intention of groceries. An online survey was employed to collect data from shoppers who were recruited from a multi-channel grocery e-retailer’s database. The online survey, comprising 16 reflective validated scale items, was sent to 555 frequent and infrequent online grocery shoppers. Results find that while customer satisfaction predicts trust for both infrequent and frequent online grocery shoppers, perceived risk fully mediates the effect of trust on repurchase intentions for infrequent online grocery shoppers. Furthermore path analysis reveals that the developed behavioural model is variant across both groups of shoppers. Theoretically, we provide a deeper understanding of the online customer experience, while gaining insight into two shopper segments identified as being important to grocery e-retailers. For managers, this study tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk in grocery e-retailing regardless of purchase frequency or experience.

Los determinantes de la confianza del comprador online. Comparación con el caso de subasta

[ES] Los trabajos de investigación sobre comercio electrónico en Internet ocupan gran parte de la investigación de marketing, pero son pocos aún los que se han ocupado de estudiar el sistema de subasta. Ante las peculiares características de una compra online, transmitir confianza al consumidor en este contexto es uno de los retos más importantes y difíciles en comparación con la compra offline. No obstante, es de esperar que las señales generadoras de confianza sean diferentes en la compra online por subasta que en la compra online en otros sitios web.

Key factors affecting purchase intention in Russian online context

Russian e-commerce has drawn a lot of attention in academic publications as well as in public media lately. The market is growing with a speed of rocket offering companies enormous business opportunities. However, combination of Russian culture, consumer online purchasing and decision-making process forms a subject yet completely unknown. From international online business perspective it is vital for companies to know how a culture affects consumer’s purchase decision and what are the key elements that need to be modified in order to successfully expand online operations to Russian market. Here, the main purpose is to define the key factors affecting Russian consumer’s online purchase intention. In order to answer the main research question, firstly the role of culture in purchase intention context is researched. Secondly, focus is drawn to the factors that affect online purchase intention. Lastly, it is researched how Russian culture is affecting e-commerce attributes modification. The objective is not only to expand the theoretical understanding of the subject but also to provide companies with a clear vision on how the online operations should be conducted in Russian online market. Ranganathan’s and Jha’s conceptual framework was chosen as a ground theory in this study. Here, three main categories Computer Self-Efficacy and Past Online Experience, Website Quality and Costumer Concerns form basis for the study. Various articles and academic literature supplemented this theoretical approach. Qualitative research method was adapted and the study was conducted through five expert interviews. As a conclusion it can be stated that culture forms a ground for entire purchase decision-making process in online context. Results from the interviews were grouped according to main three theoretic categories and placed with Ranganathan’s and Jha’s original framework. This formed a new theoretical framework that defines diverse factors affecting specifically Russian consumer’s online purchase intention. This study suggests that following factors need to be taking into serious consideration in Russian online context: photography style, detailed product and company information, colors, language, product variety, reviews, recommendations, strong social media presence, fast check out and minimalistic order information, counterfeit fear, cash on delivery payment, training and guidance, extensive customer service, consumers’ insecurity, inexperience, high interest for technology and their individualistic personality.

Necesidades percibidas por los clientes de un sistema CRM en empresas de compra online

El CRM es una herramienta que apoya la gestión de relaciones sólidas y duraderas con los clientes de manera que los productos y servicios que la empresa ofrece cumplan efectivamente las expectativas de sus clientes y por tanto se garantice la continuidad de las ventas en un entorno tan competitivo como el actual. El objetivo de este documento es presentar los resultados de la investigación de mercados que busca identificar las principales características que debe tener, desde el punto de vista del cliente, un sistema CRM para la empresa ‘Antojos Saludables’, para ello se presentará una caracterización de los clientes o posibles clientes de la empresa y las expectativas o percepciones respecto a asuntos de infraestructura tecnológica como seguridad de transacciones online, medios de pago preferidos para compras online, aplicaciones más usadas en plataformas de compra online, para finalmente mostrar algunas sugerencias sobre estrategias convenientes para el diseño del sistema de información que soporte el CRM de "Antojos Saludables".

The influence of social communication networks on intentions to purchase on the web

Despite the increased offering of online communication channels to support web-based retail systems, there is limited marketing research that investigates how these channels act singly, or in combination with online channels, to influence an individual' s intention to purchase online. If the marketer's strategy is to encourage online transactions, this requires a focus on consumer acceptance of the web-based transaction technology, rather than the purchase of the products per se. The exploratory study reported in this paper examines normative influences from referent groups in an individual's on and offline social communication networks that might affect their intention to use online transaction facilities. The findings suggest that for non-adopters, there is no normative influence from referents in either network. For adopters, one online and one offline referent norm positively influenced this group's intentions to use online transaction facilities. The implications of these findings are discussed together with future research directions.

A three country comparison of internet marketing

This paper provides information on business use of the Internet (Net) and World Wide Web (Web) across three countries viz Australia, New Zealand and the United Kingdom (UK), and explores reasons for observed differences in use. The study reports that UK firms are more likely to use the Internet in relationship management than are Australasian firms. The conclusion drawn is that while there is less sophisticated business use of the Internet by Australasian companies relative to UK companies, this is but one reason for lower household penetration of the Internet and lower online purchasing levels.

The influence of social communications networks on intentions to purchase on the web

Despite the increased offering of online communication channels to support web-based retail systems, there is limited marketing research that investigates how these channels act singly, or in combination with offline channels, to influence an individual's intention to purchase online. If the marketer's strategy is to encourage online transactions, this requires a focus on consumer acceptance of the web-based transaction technology, rather than the purchase of the products per se. The exploratory study reported in this paper examines normative influences from referent groups in an individual's on and offline social communication networks that might affect their intention to use online transaction facilities. The findings suggest that for non-adopters, there is no normative influence from referents in either network. For adopters, one online and one offline referent norm positively influenced this group's intentions to use online transaction facilities. The implications of these findings are discussed together with future research directions.

Gender and consumer search of the internet

The role of gender differences in the consumption of goods and services is well established in many areas of consumer behaviour and computer use and yet there has been only limited research into such gender-based differences in the information search behaviour of Internet users. This paper reports the gender-based results of an exploratory study of consumer external information search of the web. The study investigated consumer characteristics, web search behaviour, and the post web search outcomes of purchase decision status and consumer judgements of search usefulness and satisfaction. Gender-based differences are reported in all three areas. Consideration of the results suggests they are issues which could inhibit the adoption of online purchasing by female web users. The implications of these results are discussed and a future research agenda proposed.

“Big data” is creating a surveillance economy

While governments are capturing as much data as they can about us for security reasons, private companies are doing the same in a practice that has become known as “Big Data”. Martin Hirst (p.19) explains how the data we generate is leading to a “surveillance economy” in which businesses build data profiles that enable them to target their advertising at people more effectively, while Benjamin Shiller (p.22) explains how your online purchasing decisions will enable merchants to alter their prices to extract the maximum value from individual customers.

Online retailing versus traditional stores in the purchasing decision making process

Due to proliferation of online stores prior expectations that retailing would move completely online were not fulfilled. Previous research about consumers’ preference of retailing channels suggested that online sales are driven by the convenience of online shopping, or as a natural extension of online searches. This paradigm has changed over the years. Changes in consumer behaviour are indicating that while consumers are searching online using various information sources to learn about products, ultimately when purchasing, consumers are shifting between online and offline retailing channels depending on various factors. Online shopping is still considered to be a convenient way to purchase goods, but the convenience is not the key factor. This qualitative research is based on 22 in-depth interviews with shoppers in Australia.