Financial risk and its impact on new purchasing behavior in the online retail setting
This paper examines the effect of financial risk on perceptions of service quality and relationship-marketing quality in the online retail environment. Perceptions of financial risk were found to be negatively associated with service quality. In particular, a well-designed and attractive Web site was found to mitigate perceptions of financial risk during early trial-buy purchasing. Relationship-marketing quality was not affected by financial risk. This study adds to an enhanced understanding of how risk perceptions influence assessment of service quality and relationship-marketing quality. While the drivers of service quality and relationship-marketing quality have been examined extensively in the online setting, a surprising lack of research investigates the role of risk perceptions in the early stage, buy-trial purchasing behavior. This emerging area of research interest is deserving of more attention. Our findings provide valuable normative guidance to researchers interested in the affects of perceived risk (particularly financial risk) on new online shoppers, emphasizing the interdependency between Web site design and risk perceptions.
|Date of creation:||04 Oct 2008|
|Date of revision:|
|Publication status:||Published in Electronic Markets 4.19(2009): pp. 237-250|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hauser, John R & Urban, Glen L, 1979. " Assessment of Attribute Importances and Consumer Utility Functions: von Neumann-Morgenstern Theory Applied to Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 5(4), pages 251-62, March.
- Glenn W. Harrison & Eric Johnson & Melayne M. McInnes & E. Elisabet Rutström, 2005. "Risk Aversion and Incentive Effects: Comment," American Economic Review, American Economic Association, vol. 95(3), pages 897-901, June.
- Robert B. Barsky & F. Thomas Juster & Miles S. Kimball & Matthew D. Shapiro, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 537-579.
- Chaudhuri, Arjun, 1997. "Consumption Emotion and Perceived Risk: A Macro-Analytic Approach," Journal of Business Research, Elsevier, vol. 39(2), pages 81-92, June.
- Dutta, Soumitra & Segev, Arie, 1999. "Business transformation on the Internet," European Management Journal, Elsevier, vol. 17(5), pages 466-476, October.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001.
"What Accounts for the Variation in Retirement Wealth among U.S. Households?,"
American Economic Review,
American Economic Association, vol. 91(4), pages 832-857, September.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997. "What Accounts for the Variation in Retirement Wealth Among U.S. Households?," NBER Working Papers 6227, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997. "What Accounts for the Variation in Retirement Wealth Among U.S. Households?," Working Papers 97035, Stanford University, Department of Economics.
- Palsson, Anne-Marie, 1996. "Does the degree of relative risk aversion vary with household characteristics?," Journal of Economic Psychology, Elsevier, vol. 17(6), pages 771-787, December.
- Charles A. Holt & Susan K. Laury, 2005. "Risk Aversion and Incentive Effects: New Data without Order Effects," American Economic Review, American Economic Association, vol. 95(3), pages 902-912, June.
- Bonoma, Thomas V & Johnston, Wesley J, 1979. " Decision Making under Uncertainty: A Direct Measurement Approach," Journal of Consumer Research, Oxford University Press, vol. 6(2), pages 177-91, Se.
- Haliassos, Michael & Bertaut, Carol C, 1995. "Why Do So Few Hold Stocks?," Economic Journal, Royal Economic Society, vol. 105(432), pages 1110-29, September.
- Dowling, Grahame R & Staelin, Richard, 1994. " A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, Oxford University Press, vol. 21(1), pages 119-34, June.
- Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40510. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.