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Does freight insurance really work? Effect of freight insurance on consumers' attitude in online shopping

Author

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  • Tong Chen
  • Ke Ma
  • Chundong Zheng

Abstract

This research examines the effects of free freight insurance on consumers' product purchase intention and product return intention. Through an empirical study (study 1), the results show that free freight insurance will have a positive impact on consumers' product purchase intention, but it is also demonstrated that free freight insurance may lead to higher product return intention. Specifically, consumers react more perceived benefits and less perceived risks toward free freight insurance during online shopping. Furthermore, product category and product price have an interaction moderation effect on the effect of free freight insurance on consumers' purchase intention. For experience product with higher price, free freight insurance was demonstrated that it does not functions well, and the results in study 2 (an actual experiment) also verify on this point. The results of this study have important and meaningful implications for online retailers.

Suggested Citation

  • Tong Chen & Ke Ma & Chundong Zheng, 2018. "Does freight insurance really work? Effect of freight insurance on consumers' attitude in online shopping," International Journal of Internet Marketing and Advertising, Inderscience Enterprises Ltd, vol. 12(3), pages 209-232.
    • Handle: RePEc:ids:ijimad:v:12:y:2018:i:3:p:209-232
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    Cited by:

    1. Li, Xiaoxiao & Gao, Jie & Bian, Yiwen, 2023. "Return freight insurance strategies for the online retailer and insurance company," International Journal of Production Economics, Elsevier, vol. 256(C).
    2. Chong Zhang & Man Yu & Jian Chen, 2022. "Signaling Quality with Return Insurance: Theory and Empirical Evidence," Management Science, INFORMS, vol. 68(8), pages 5847-5867, August.
    3. Zhang, Chong & Yu, Man & Chen, Jian, 2022. "Signaling quality with return insurance: Theory and empirical evidence," Other publications TiSEM 184da313-a89e-4a81-9f23-c, Tilburg University, School of Economics and Management.

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