Comparing Risks and Benefits for Value Enhancement of Online Purchase

• Main Authors: Priyanka Sinha, Saumya Singh
• Format: Article
• Language: English
• Published: Universitas Gadjah Mada 2017-12-01
• Series: Gadjah Mada International Journal of Business
• Subjects: consumer perception; online purchase; perceived benefit; perceived risk; TPB
• Online Access: https://jurnal.ugm.ac.id/gamaijb/article/view/10512

In a developing economy, the acceptability of e–retailing is not very new, but the potential of online marketing in market research and analysis is still largely unexplored. This article is an attempt to understand the psyche of Indian online consumers. As consumers have their own preconceived notions toward this growing purchasing environment, it becomes important for e-retailers to understand the consumers’ perceptions and attitudes toward online purchases. This paper integrates the dimensions of the risks and benefits with the Theory of Planned Behavior (TPB) to understand how consumers adopt their online purchase processes. Four hundred and sixty-eight valid responses were analyzed using structural equation modeling on AMOS 21 to identify the relationship between the different factors and the intention to purchase online. The paper concludes that consumers’ purchase intentions are jointly determined by their attitude towards online purchases and the subjective norm. Furthermore, their attitude is determined by the sub-dimensions of perceived benefits (hedonic benefit, convenience benefit, economic benefit and variety) and the sub-dimensions of perceived risk (product risk and financial risk).