Perceived Risk in E-Commerce and the Development of Loyalty

Abstract

This chapter examines the effect of Website design, the language used on the Website, and the user’s flow state while browsing on processing online information in terms of perceived security and loyalty towards the tourism service being promoted. The results underline the importance of Website design and language on perceived risk online, and of user flow state on the development of loyalty towards the tourist destination in question. It was found that user involvement with the site content is a key moderator in reducing perceived risk and increasing loyalty. In light of the findings, firms are recommended to select content for their Websites that reflect the different types of client motivation so as to make browsing more useful and appealing to users.