A Technology-Driven Approach: The Impact of Customer Reviews on the Perceived Risks of Using Childcare Services

When searching for quality childcare, the best childcare reviews can provide invaluable insights for parents in selecting childcare for their children. These reviews can highlight parents' experiences in using childcare and also shed light on the strengths and weaknesses of childcare centers. The study’s purpose was to determine the impact of customer reviews on perceived risk, with technology innovation as a mediator. The study used a quantitative approach in data collection and 385 questionnaires were distributed to working mothers across four zones in Peninsular Malaysia. The research instrument used was a questionnaire consisting of 15 questions for the variable CR (Customer Review), 5 questions for TI (Technology Innovation), and 6 questions for PR (Perceived Risk). The collected data were processed using Partial Least Squares Structural Equation Modelling (PLS-SEM). According to the analysis results, customer review was revealed to negatively and significantly affect perceived risk (? = -0.083, p = 0.030), but positively affect technology innovation (? = 0.419, p < 0.000). Also, technology innovation was revealed to have a significant mediating effect on customer review and perceived risk (? = -0.294, p = 0.000), which shows that customer review can be more effective in lowering perceived risk when integrated with technology innovation. Therefore, the contribution of technology innovation as a mediator can lower perceived risks in monitoring unregistered childcare centers. Future studies could explore other mediating and moderating variables, such as government regulation or parental experience with childcare centers.