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Reducing perceived online shopping risk to enhance loyalty: a website quality perspective

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  • Ming-Tsang Hsieh
  • Wen-Chin Tsao

Abstract

The popularization of the Internet has made shopping through online stores and online auction websites increasingly common. Trends in online group purchasing and encouragement from social networks have changed consumption habits and shifted attention to the development of e-commerce. Previous studies have indicated that relative to physical stores, consumers still perceive higher risk in online shopping. The purpose of this study mainly aims to explore the importance of perceived risk in online shopping from a website quality perspective. A structural equation model is developed to test casual effects within a conceptual model. The empirical results show that (1) system quality and information quality do not have significant negative effects on perceived risk; (2) only e-service quality has a significant negative effect on perceived risk; (3) perceived risk has a significant negative effect on online loyalty; and (4) the negative relationship between perceived risk and online loyalty on consumer-to-consumer platforms will be stronger than that on business-to-consumer platforms. The managerial implications for online marketing managers and limitations are discussed.

Suggested Citation

  • Ming-Tsang Hsieh & Wen-Chin Tsao, 2014. "Reducing perceived online shopping risk to enhance loyalty: a website quality perspective," Journal of Risk Research, Taylor & Francis Journals, vol. 17(2), pages 241-261, February.
    • Handle: RePEc:taf:jriskr:v:17:y:2014:i:2:p:241-261
    DOI: 10.1080/13669877.2013.794152
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    Citations

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    Cited by:

    1. Wu, Kewen & Vassileva, Julita & Noorian, Zeinab & Zhao, Yuxiang, 2015. "How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 36-46.
    2. Hyun-Sun Ryu & Kwang Sun Ko, 2020. "Sustainable Development of Fintech: Focused on Uncertainty and Perceived Quality Issues," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    3. Chi, Ting, 2018. "Understanding Chinese consumer adoption of apparel mobile commerce: An extended TAM approach," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 274-284.
    4. Hung-Joubert Yu-ting, 2017. "Investigating the construct validity of quality measures influencing online shopping in a South African context," Management & Marketing, Sciendo, vol. 12(3), pages 376-401, September.
    5. Sunita Guru & Jitendra Nenavani & Vipul Patel & Nityesh Bhatt, 2020. "Ranking of perceived risks in online shopping," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(2), pages 137-152, June.
    6. Fehmi Azemi & Fiqiri Baholli & Elton Guberaj, 2015. "E-Tailing in Kosovo: The Effect of Trust, Satisfaction and Service Quality in Achieving Consumer E-Loyalty," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, December.
    7. Akram, Umair & Ansari, Aisha Rehman & Fu, Guoqun & Junaid, Muhammad, 2020. "Feeling hungry? let's order through mobile! examining the fast food mobile commerce in China," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    8. Zhong, Junying & Chen, Tiao, 2023. "Antecedents of mobile payment loyalty: An extended perspective of perceived value and information system success model," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    9. Thomas Clauss & Peter Harengel & Marianne Hock, 2019. "The perception of value of platform-based business models in the sharing economy: determining the drivers of user loyalty," Review of Managerial Science, Springer, vol. 13(3), pages 605-634, June.
    10. Melović, Boban & Šehović, Damir & Karadžić, Vesna & Dabić, Marina & Ćirović, Dragana, 2021. "Determinants of Millennials' behavior in online shopping – Implications on consumers’ satisfaction and e-business development," Technology in Society, Elsevier, vol. 65(C).
    11. Muhammad Rasheed & Mushaf Ismail & Dr. Ahmad Sohail Lodhi & Rida, 2023. "Exploring Perceptions and Realities of Online Shopping: A Study on Youth E-Consumers in Lahore, Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 667-676.

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