Perceived Risk and Trust Associated with Purchasing at Electronic Marketplaces

Understanding consumer behavior is of vital importance to consumer oriented e-business models today. In this paper we report on a study into the relationships between consumer perceptions of risk and trust and the intention to purchase at a C2C electronic marketplace. Distinguishing for electronic marketplace settings is that consumer behavior is subject to perceptions of both selling party and the institutional structures of the intermediary operating the system. Building upon the well-established literature of trust we consider the concepts of institutional trust and party trust. We extend this categorization by introducing the concepts of institutional risk and party risk. Next, we adopt the process of measurement instrument development as put forward by Churchill (1979). We develop measurement instruments for institutional trust (4 items), institutional risk (5 items) and party risk (4 items). All measurement scales contain acceptable alpha’s and are unidimensional. An empirical study is applied to explore the relationships between the risk and trust types and consumer purchase intention. The results reveal significant, direct effects of party trust and party risk. Second order effects of institutional trust and institutional risk are investigated and reported. The paper concludes with general observations and recommendations for further research

Application of Structural Equation Modeling (SEM) to Explain Online Purchasing Intention - An Extension of Theory of Planed Behaviour (TPB)

The purpose of this study is extension of the well established factors of Theory of Planed Behaviour (TPB) includes, Attitude (A), Subjective norm (N), Perceived behavior control (P) and relation of Perceived reliability (U), Trust and faithfulness (T), on Online Purchasing  intention (OP). These factors are identified through previous research and each one measured based on 7-point interval Likert scale. Using primary data collection method, 200 questionnaires were distributed to target respondents of customers online purchasing. The responses collected were 147 completed questionnaires representing 73.5 percent response rate. The data were analyzed using Structural Equation Modeling (SEM) using AMOS 20 and SPSS 19. Confirmatory factor analysis of measurement models indicate adequate goodness of fit after a few items was eliminated through modification indices verifications. Goodness of fit for the revised structural model shows requirement in terms of Ratio: 1,238; P-Value: 0.98; GFI: 0.932; and RMSEA; 0.040. The findings showed that perceived behavior control (?=.111, CR=6.656 p<0.001), Attitude (?=-.072, CR=-2.781, p<0.005) and Trust and faithfulness (?=.183, CR=4.454, p<0.001) have significant relationship on online purchasing behavior while subjective norm and Perceived reliability have insignificantly relationship on online purchasing intention. Keywords: online purchasing intention, Structural Equation Modeling (SEM) , AMOS grafic , Theory of Planed Behaviour (TPB

The Effect Of Online Reviews On Hotel Pricing

Current studies show that online hotel bookings are growing constantly as consumer increasingly uses Internet for the arrangement of their travel. One of the important factor in online hotel booking is the rating and review of past customers. However, the impact of online reviews are not fully explored in online hotel booking setting. For that purpose, we choose two most popular tourist destinations in the world: Paris and London. Our analysis shows that both stars ratings and customer reviews positively affect hotel pricing. Besides, high stars hotels benefit more from higher customer satisfaction. The implication of these results is that hotels should strive to please customer as their future revenue depends on the satisfaction of previous users. This study also guides hotel manager how to make price decisions of hotel room

Factors Driving Mobile App Users to Pay for Freemium Services

With the popularity of smart mobile devices, mobile applications (most commonly referred to as an App) have gradually grown up to be a huge commercial market. Therefore, as the variety and download counts of Apps in the application stores of the two biggest operating systems increase, how to make a profit from Apps has become the most concerned issue for developers. Today the freemium strategy is widely observed in mobile App markets. Freemium is a business model by which an App is offered free of charge, but a premium is charged for advanced features. Hence, the purpose of this study is to explore the factors driving mobile App users to pay for freemium services based on value-based adoption model. An online survey was conducted to collect empirical data in order to test the research model. The results of PLS analysis indicate that an App user’s intention to pay is determined by perceived value, a thorough comparison of benefits and sacrifices, and trust of developer. Furthermore, perceived value will be affected by perceived effort and perceived usefulness while the App user has no experience on premium service. Finally, the implications for practitioners and researchers are discussed

Supply Chain Impact on Consumer Confidence for Purchase Intentions Through Online

Abstract- Supply chain Management has played a significant role in corporate efficiency and has attracted the attention of numerous academicians over the last few years. This study aims to determine how the influence of supply chain, virtue, integrity, trust in intermediaries, trust in sellers, and customer loyalty, on purchase intentions through online. Data were obtained by distributing 168 questionnaires to students in the Soloraya region which included: Klaten Regency, Sukoharjo Regency, Wonogiri Regency, Sragen Regency, Boyolali Regency, and Solo Kota. The analytical tool used is SEM (Structural Equation Modeling). Based on the results of the analysis, it shows that the competency variable has no effect on trust in the intermediary. The variable of virtue and integrity, has a positive effect on trust in intermediaries. Variable trust in the intermediary has a positive effect on trust in the seller. The variable of trust in the intermediary and trust in the seller, has no effect, on purchase intention. The variable of trust in the intermediary, has a negative effect, on customer loyalty. Customer loyalty, has a positive effect on purchase intentions

Determinants Influencing Consumers’ Attitude Towards Online Shopping: An Extension of the Technology Acceptance Model

This research is conducted for investigating determinants influencing consumers’ attitude towards online shopping. The survey was based on 423 Vietnamese Internet users. Data collected was analyzed in accordance with the process from Cronbach's Alpha to EFA and multiple regression technique. The results show that consumers’ attitude towards online shopping was impacted by perceived usefulness, compatibility and trust. Based on the findings, some recommendations are given for retailers to improve customers’ attitude toward online shopping in the context of Vietnam in particular and in emerging countries in general. Keywords: Attitude, Online shopping, Perceived usefulness, Trust

Investigating the Moderating Role of Social Support in Online Shopping Intentions

Relationship building plays a crucial role in business success because of the saturated nature of the market. Thus, there has been stronger competition because many businesses offer similar products for sale on an online shopping platform. This has given online consumers a wide range of alternatives when shopping online. This present study aimed to investigate the influence of relationship quality on purchase intention among Ghanaian consumers in an online shopping platform while moderated by social support. A convenience sampling method was employed to collect 304 responses from the respondents via web-survey. Partial least square structural equation modeling (PLS-SEM) was used to assess the structural model. The findings reveal that customer trust and customer satisfaction did not significantly influence purchase intention. Furthermore, Customer commitment and social support had a significant and positive influence on purchase intention. Also, social support moderated the relationship between customer trust and purchase intention but had no moderation effect on the relationship between customer satisfaction and purchase intention and customer commitment and purchase intention. This article ends with theoretical and practical implications. Keywords: Relationship Quality, Consumer Behavior, Purchase Intention, Social Support, Ghana DOI: 10.7176/JMCR/78-04 Publication date: April 30th 202

Review Volume, Consumer Ratings, and Rental Price in the Sharing Economy: The Case of Airbnb Jakarta

Online reviews are emerging as a powerful source of information influencing consumers’ pre-purchase evaluation. This phenomenon has emphasized the need for a further comprehension of the impact of online reviews on consumer attitudes and behaviors, particularly in the sharing economy platforms. This study aims to examine the relationship of attributes in Airbnb listings towards online reviews and measure the effect of online reviews towards rental price. To examine the hypothesis and drawing conclusion, a web-crawling code was developed to collect data related with the characteristics of Airbnb’s listings, the attributes of the hosts, and the reputation of the listings. The model was tested by using a dataset of 413 Airbnb listings within Jakarta area over a period of Airbnb`s launch in January 2012 until May 2018. The data collected from the survey was processed and analyzed through multiple linear regression model, t-test, and f-test. The results of this study indicate that an online review is not a significant aspect in determining rental price of an accommodation. Furthermore, the findings highlight the importance of a “superhost” badge to influence review volume, while membership duration represents the key reason that affects both review volume and consumer ratings