IDEAS home Printed from https://ideas.repec.org/a/vrs/remava/v33y2025i2p55-68n1005.html
   My bibliography  Save this article

Perceived Risk & Intention to Invest Through Online Real Estate Sites

Author

Listed:
  • Zaheer Kainat

    (Department of Management Sciences, COMSATS University Islamabad, Islamabad Campus, Park Road, Tarlai Kalan, Islamabad 45550, Pakistan)

  • Mumtaz Tahir

    (COMSATS University Islamabad, Islamabad Campus, Park Road, Tarlai Kalan, Islamabad 45550, Pakistan)

  • Fatima Tayyba

    (Shifa Tameer-E-Millat University Islamabad & COMSATS University Islamabad, Islamabad Campus, Park Road, Tarlai Kalan, Islamabad 45550, Pakistan)

  • Kamran Muhammad

    (Faculty of Management, University of Warsaw, Krakowskie Przedmieście 26/28, 00-927 Warszawa, Poland)

  • Alharthi Majed

    (Finance Department, College of Business, King Abdulaziz University, Rabigh 21911, Saudi Arabia)

Abstract

The research aims to identify how perceived risk tends to affect the intention to invest through online real estate sites. It also tends to identify the mediating role of investing attitude of the investors and their brand equity related to those sites. Survey approach was used to gather and compile all the data, and hypotheses were tested through the structural equation modeling technique. The outcomes revealed a negative role played by economic, functional, time and social risk on the intention of investors to invest through online real estate sites. The five different kinds of perceived risk showed a negative influence on investing attitude and brand equity except for social risk which positively influenced brand equity and investing attitude. Investing attitude and brand equity cause a positive change in investors’ intentions to invest. In addition to it, investing attitude and brand equity of online real estate sites significantly mediates the linkage between all types of perceived risk and investors’ investment intentions. Online real estate sites can use this model to determine how different investors perceive risk related to real estate sites and in turn work on these factors to increase their intentions for investment which ultimately is the primary basis of actual investment. There have not been many studies related to investment through online real estate sites. Especially in Pakistan, no such study that involved the investors’ intentions to invest through online real estate sites had been conducted earlier. Brand Equity of online real estate sites is also a variable which has been studied for the first time in this work with intentions to invest. Thus, this study presents the first confirmation of this model within the online real estate industry.

Suggested Citation

  • Zaheer Kainat & Mumtaz Tahir & Fatima Tayyba & Kamran Muhammad & Alharthi Majed, 2025. "Perceived Risk & Intention to Invest Through Online Real Estate Sites," Real Estate Management and Valuation, Sciendo, vol. 33(2), pages 55-68.
    • Handle: RePEc:vrs:remava:v:33:y:2025:i:2:p:55-68:n:1005
    DOI: 10.2478/remav-2025-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/remav-2025-0015
    Download Restriction: no
    File URL: https://libkey.io/10.2478/remav-2025-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Carina Kaiser & Julia Freybote, 2022. "Is e-commerce an investment risk priced by retail real estate investors? An investigation," Journal of Property Research, Taylor & Francis Journals, vol. 39(3), pages 197-214, July.
    2. Oleg Badunenko & Nataliya Barasinska & Dorothea Schäfer, 2009. "Risk Attitudes and Investment Decisions across European Countries: Are Women More Conservative Investors than Men?," Discussion Papers of DIW Berlin 928, DIW Berlin, German Institute for Economic Research.
    3. repec:eme:mfppss:mf-07-2019-0324 is not listed on IDEAS
    4. Fahim Ullah & Samad M. E. Sepasgozar, 2020. "Key Factors Influencing Purchase or Rent Decisions in Smart Real Estate Investments: A System Dynamics Approach Using Online Forum Thread Data," Sustainability, MDPI, vol. 12(11), pages 1-36, May.
    5. Phung Thai Minh Trang & Nguyen Huu Tho, 2017. "Perceived Risk, Investment Performance and Intentions in Emerging Stock Markets," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 269-278.
    6. Derbaix, C., 1983. "Perceived risk and risk relievers: An empirical investigation," Journal of Economic Psychology, Elsevier, vol. 3(1), pages 19-38.
    7. Christoph Huber & Jürgen Huber, 2019. "Scale matters: risk perception, return expectations, and investment propensity under different scalings," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 76-100, March.
    8. Mohd Suki, Norazah & Mohd Suki, Norbayah, 2017. "Modeling the determinants of consumers' attitudes toward online group buying: Do risks and trusts matters?," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 180-188.
    9. Betül Çal & Mary Lambkin, 2017. "Brand equity of stock exchange as a mediator in financial decisions," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(1), pages 14-23, March.
    10. Juha Munnukka & Outi Uusitalo & Veera-Juulia Koivisto, 2017. "The consequences of perceived risk and objective knowledge for consumers’ investment behavior," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(4), pages 150-160, December.
    11. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2023. "Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    12. Chang, En-Chi & Tseng, Ya-Fen, 2013. "Research note: E-store image, perceived value and perceived risk," Journal of Business Research, Elsevier, vol. 66(7), pages 864-870.
    13. Pallavi Dogra & Arun Kaushal & Prateek Kalia, 2024. "What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 276-291, June.
    14. Jonathan Damilola Oladeji & Benita Zulch (Kotze) & Joseph Awoamim Yacim, 2023. "Implications of macroeconomic risks on NHFC'S incremental housing finance in South Africa," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 16(7), pages 80-102, May.
    15. Linh Nguyen & Gerry Gallery & Cameron Newton, 2019. "The joint influence of financial risk perception and risk tolerance on individual investment decision‐making," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(S1), pages 747-771, April.
    16. repec:diw:diwfin:diwfin06010 is not listed on IDEAS
    17. Wenshuai Wu & Gang Kou, 2016. "A group consensus model for evaluating real estate investment alternatives," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-10, December.
    18. Gianni Nicolini & Tommy Gärling & Anders Carlander & Jeanette Carlsson Hauff, 2017. "Attitude Toward Risk and Financial Literacy in Investment Planning," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Risk Culture in Banking, chapter 0, pages 307-320, Palgrave Macmillan.
    19. Ashish Gupta & Graeme Newell & Deepak Bajaj & Satya Mandal, 2020. "Determinants of foreign and domestic non-listed real estate fund flows in India," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 38(6), pages 503-524, July.
    20. Syed Zulfiqar Ali Shah & Maqsood Ahmad & Faisal Mahmood, 2018. "Heuristic biases in investment decision-making and perceived market efficiency," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 10(1), pages 85-110, February.
    21. Proudlove, Richard & Finch, Sue & Thomas, Sebastian, 2020. "Factors influencing intention to invest in a community owned renewable energy initiative in Queensland, Australia," Energy Policy, Elsevier, vol. 140(C).
    22. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pallavi Dogra & Arun Kaushal & Prateek Kalia, 2024. "What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 276-291, June.
    2. Walsh, Gianfranco & Shiu, Edward & Hassan, Louise M., 2014. "Replicating, validating, and reducing the length of the consumer perceived value scale," Journal of Business Research, Elsevier, vol. 67(3), pages 260-267.
    3. Dan Zhu & Qingwei Wang & John Goddard, 2022. "A new hedging hypothesis regarding prediction interval formation in stock price forecasting," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(4), pages 697-717, July.
    4. Nketiah, Emmanuel & Song, Huaming & Cai, Xiang & Adjei, Mavis & Adu-Gyamfi, Gibbson & Obuobi, Bright, 2022. "Citizens’ intention to invest in municipal solid waste to energy projects in Ghana: The impact of direct and indirect effects," Energy, Elsevier, vol. 254(PC).
    5. Anselmsson, Johan & Burt, Steve & Tunca, Burak, 2017. "An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 194-203.
    6. Kim, Yeonshin & Hur, Won-Moo & Lee, Luri, 2023. "Understanding customer participation in CSR activities: The impact of perceptions of CSR, affective commitment, brand equity, and corporate reputation," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    7. Christophe Bezes, 2011. "Types de risques perçus et réducteurs de risques dans le commerce électronique : le cas du site Fnac.com," Post-Print hal-02086726, HAL.
    8. Vishwas Maheshwari & George Lodorfos & Siril Jacobsen, 2014. "Determinants of Brand Loyalty: A Study of the Experience-Commitment-Loyalty Constructs," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(6), pages 13-23, November.
    9. Chan Choi, S., 2017. "Defensive strategy against a private label: Building brand premium for retailer cooperation," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 335-339.
    10. Zhu, Xinxin & Jiao, Peiran & Zong, Jichuan, 2024. "Beliefs and the equity home bias," Economics Letters, Elsevier, vol. 244(C).
    11. Affifa Sardar & Amir Manzoor & Khurram Adeel Shaikh & Liaqat Ali, 2021. "An Empirical Examination of the Impact of eWom Information on Young Consumers’ Online Purchase Intention: Mediating Role of eWom Information Adoption," SAGE Open, , vol. 11(4), pages 21582440211, October.
    12. Eleonora Bottani & Piera Centobelli & Teresa Murino & Ehsan Shekarian, 2018. "A QFD-ANP Method for Supplier Selection with Benefits, Opportunities, Costs and Risks Considerations," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 911-939, May.
    13. Patricea Elena Bertea & Adriana Zait, 2013. "Perceived risk vs. intention to adopt e-commerce - a pilot study of potential moderators," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 25(2), pages 213-229.
    14. Huber, Christoph & Huber, Jürgen & Kirchler, Michael, 2021. "Market shocks and professionals’ investment behavior – Evidence from the COVID-19 crash," Journal of Banking & Finance, Elsevier, vol. 133(C).
    15. Shapiro, Stephen L. & Reams, Lamar & So, Kevin Kam Fung, 2019. "Is it worth the price? The role of perceived financial risk, identification, and perceived value in purchasing pay-per-view broadcasts of combat sports," Sport Management Review, Elsevier, vol. 22(2), pages 235-246.
    16. Sandra Maria Correia Loureiro & Rui Lopes & Hans Ruediger Kaufmann, 2014. "How brand personality, brand identification and service quality influence service brand equity," Cogent Business & Management, Taylor & Francis Journals, vol. 1(1), pages 1-1, October.
    17. Sri Setyo Iriani, 2021. "Do you (still) hire celebrities to increase purchase intention?," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 3(3), pages 38-45, July.
    18. Munazza Saeed & Arhum Ahmed & Erhan Boğan & Osman Abul & Ahmad Qammar, 2025. "‘Buying green’: the role of green customer-based brand equity in shaping customers’ green buying behavior," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 5981-5997, March.
    19. Kunal Swani & Lauren I. Labrecque, 2020. "Like, Comment, or Share? Self-presentation vs. brand relationships as drivers of social media engagement choices," Marketing Letters, Springer, vol. 31(2), pages 279-298, September.
    20. Allah Wasaya & Bilal Khan & Muhammad Shafee & Mirza Sajid Mahmood, 2016. "Impact of Brand Equity, Advertisement and Hedonic Consumption Tendencies on Cognitive Dissonance: A Mediation Study," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(3), pages 154-162, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:remava:v:33:y:2025:i:2:p:55-68:n:1005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.