Online customer behavior: perceptions regarding the types of risks incurred through online purchases

Abstract

AbastractDeciding to make online purchases can be risky and retailers have an opportunity to influence the consumer’s decision-making process. The aim of this article is to gauge the impact of different types of risks on trust and decision making with regard to online purchases. We conducted a survey with adaptations to three theoretical scales. To analyze the impact of risk on the variables of trust and decision making, a confirmatory factor analysis was performed, and to clarify the relationships between these constructs, a structural equation model was prepared. A qualitative (n = 13) and quantitative study were conducted with primary data (n = 328) collected by means of a structured questionnaire using a sample of a group of consumers who reside in the south of Brazil. The article makes four main contributions to the field: (i) it identifies the influence of three latent constructs that might affect online purchase behavior; (ii) it gauges the risks associated with the latent construct of trust and the adaptation of scales of perceived risk and decision making; (iii) it highlights the need to reassess the strategies adopted by companies that sell online to reduce risks and consequently increase trust in decision making; and (iv) it evaluates the demographic variables that have a significant moderating effect on the relationships of the constructs of trust and decision making during the purchase process.