MỤC LỤC
Since Bauer (1960) first proposed that consumer behavior be seen as risk taking, valuable empirical researches have attempted to identify various types of perceived risk in the context of consumers’ purchase behavior. The probability that a purchased product may cause injury ties in with physical risk and the probability that a purchase results in loss of time to buy or retain the product refers to time risk (Kaplan, Jacoby, & Szybillo, 1974). As some of the six components are related, they are grouped into two categories, Perceived Risk with Product and Services (PRP) and Perceived Risk in the Context of Online Transaction (PRT).
Products or services delivered to consumers may not perform as expected sincethere’s a lack of physically seeing, touching and examining what they buy online (Ahn, Jinsoo, & Lee 2001). However, providing personal information to a vast network makes risks such as piracy, where someone hacks into the company’s network and gets the customer’s data, become a nightmare to both businesses and consumers. If people engage in online shopping with dishonest merchants or if sensitive information is stored on unsecured databases, security threats exist even where data is perfectly secure in transmission (Rose, 1999).
Vietnamese consumers have not trusted in online shopping because there are plenty of non- prestigious websites available in market so it is difficult for customer to find the good one.There are several types of risk that come under perceived risk with products/services that affect the willingness to adopt E-commerce. While purchasing products the traditional way means that the product is readily available right at the time of purchase, buying it online means that there is a time lapse between the time he or she isfiling the order and the actual time he or she receives the goods. Additionally, if there is an inconsistency between the in stock amount in the system and the warehouse, the consumer may need to backorder, which further delays the time the product gets to the consumer (Cunningham, 1967).
Even when the product is what the seller describes, there is a chance that the product is defective or certain components are malfunctioning during the first couple of uses (Peter and Ryan, 1976). However, it could be that once the buyer has purchased the product thinking he or she had got a good deal, he or she may later found out it was not the case and could feel disappointed towards his or herself. In a country that amplifies the importance of social status through material means, such as Iphones which represent a higher social class, buying a cheaper phone or a fake phone could result in extreme loss of self-esteem (Cunningham, 1967).
H-2: Perceived risk in the context of online transaction positively affects consumer’s reluctance in purchasing behavior in E-commerce. Financial risk Potential loss of current cost as well as additional charges in the future (e.g., possibility that the product may need to be repaired, delivery risk). Delivery risk Loss or damaged product as well as wrong destination of delivery or late delivery.
Psychological risk Potential loss of self- esteem (ego loss) from frustration at not achieving a buying goal or when the product doesn’t suit one’s self-image. Perceived Risk in the Context of Online Transaction (PRT) Privacy risk Loss or misuse of personal.
I’m afraid that my personal information will be collected without my consent when giving my credit card number online. Scale of perceived risk with products or service and perceived risk in the context of online transaction were adopted from Featherman and Pavlou (2003) discussed about predicting E-service adoption: a perceived risk facets perspective. PRI1 I’m afraid that my personal information will be collected without my consent when giving my credit card number online.
PRI2 I’m afraid that my personal information will be collected without my consent with the use of cookies and web bugs. This research paper’s main focus is on the nine risks divided into two major types of risks: perceived risk in the context of online transaction andperceived risk with products/services. These nine risks are: financial risk, performance risk, security risk, source risk, privacy risk, delivery risk, time risk psychological risk and social risk.
The majority of respondents hold an undergraduate degree with 57.7%, following by people with high school diploma at 24.4%.
Assessment of Measurement scale
The Exploratory Factor Analysis had deleted FIN1, FIN3, SOU3, SEC1, SEC2, TIME2, TIME3, PSY2, PRI1 and PRI2 because factor loadings of these items are less than 0.5. All of these items are related to performance risks, such as: buyer’s concerns towards the product size, quality and defectiveness. PERF1 I’m afraid that the product purchased doesn't come as I expected PERF2 I'm afraid that the quality is not as.
While FIN2 remains in the original factor, DEL3 is taken from delivery risk, TIME1 from time risk and PRI3 from privacy risk. Referring back to the questionnaire, both FIN2 and DEL3 deal with potential cost of damaged product once delivered. TIME1 and PRI3 also imply the cost of excessive time-consuming search procedure online as well as the monetary risk involved in using the checking account online.
Therefore it is still reasonable to keep the initial name of the factor, which is financial risk. However, all these items deal with the perceived risks of making the mistake when choosing products to purchase. SOC1 I’m afraid of the pressure from friends and family if the product purchased online fails.
Hence it contributes to the source risk and therefore its present in the source risk factor is reasonable. SOU2 I'm afraid that missing information on the product will misrepresent its quality DEL1 I’m afraid of not receiving the product on. The first 2 items deal with the risk of losing money by having the payment method and account online, which directly relate to security risk.
Only one component is extracted, all items including ADOPT1, ADOPT2, ADOPT3, and ADOPT4 have a loading factor that is greater than 0.5, KMO of 0.711 and Barlett’s Test had significance level at 0.000 (less than 0.05).
The Pearson correlation coefficients between dependent variable intention to adopt and independent variables: performance, financial, social, uninformed, source and security risks all have significant levels at 0.000 (p<0.005) except from social risk, which is 0.021.
The shape of overall regression plot could be used to examine the validity of assumption 1. If the dots in chart were scattered, it meant that the data met the assumption of residuals being normally distributed. The result shows that security risk and source risk factors are statistically insignificant (greater than significance level of 5%).
From the above results R squared adjusted decreased slightly but all variables show a high level of significance, which are performance risk, financial risk and uninformed risk. Correction coefficient R Square which is 0.465 means that there is 46.5% of consumer’s reluctance to adoptE-commerce variance explained by three of the above independent variables. All these variables do not have collinear phenomenon, because of the Tolerance value is greater than (1-R2) and VIF < 2.
Performance risk is placed as the most impact on consumer’s reluctance in adopting E-commerce (Standardized Coefficients = 0.298), following by uninformed risk (0.279) and financial risk (0.277).
Testing assumptions of Multiple Regressions
Three factors were not supported in the final result including social risk, source risk and security risk. These risks which were not supported as a factor affecting consumer’s reluctance to adoptE-commerce was an unexpected result. This could imply that consumers who purchase online are less sensitive to social perception since they would be buying it at their own pace without people judgment while making the purchase.
Or it could mean that the data collected is still insufficient enough to make further deduction. In regards to source risk, most online shops in Vietnam are from big and well-reputed companies therefore consumer’s sensitivity to source credibility could also be minimal comparing to previous research studies from elsewhere. However, the majority of online purchases in Vietnam are done using the system where buyers can pay by cash upon delivery instead of transferring money online directly from their bank account.
This minimizes the chances of fraud and security preaches which makes the data collected valid.Regarding the supported risk factors, performance and finance were crucial in our model, which were expected and orthodox with past research. The buyers’ concerns towards the product size, quality and defectiveness is always significant in terms of their willingness to make a purchase at any shopping convention, traditional or not. It is even more important to consumers when going online because they could not see the product or test it out physically before purchasing.
If the product was not what they had expected, the time and potentially finance consuming process would reduce their willingness to buy anything online.
Discussion
Recommendation
The Impact of Developer Responsiveness on Perceptions of Usefulness and Ease of Use: An Extension of the Technology Acceptance Model, Database for Advances in Information Systems, 29(2), 35-49. 2nd International We-B Conference (pp. Western Australia: Perth. Consumer Trust in an Internet Store: A Cross-Cultural Validation. Components of perceived risk in product purchase:. The Psychological Origins of Perceived Usefulness and Ease- of-use. Pragmatic Perspective on Measurement of Information Service Quality. An empirical study on consumer acceptance of products in electronic markets: a transaction cost model. The Major Dimensions of Perceived Risk. Risk taking and information handling in consumer behavior, 82-108. Overview of the Technology Acceptance Model: Origins, Developments and Future. Dimensions of Consumer’s Perceived Risk in Online Shopping. Do, Interviewer) Ho Chi Minh, Vietnam: Tech in Asia. I’m afraid that potential loss of the current cost as well as additional charges to exchange the product.
I'm afraid that the product purchased will result to social loss because others will think negative of me. I’m afraid that internet hackers will take control of my checking account if I purchase products online.