Comparing Risks and Benefits for Value Enhancement of Online Purchase

  • Priyanka Sinha Institute of Innovation in Technology and Management
  • Saumya Singh Indian Institute of Technology (IIT-ISM) Dhanbad
Keywords: consumer perception, online purchase, perceived benefit, perceived risk, TPB

Abstract

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).

Author Biographies

Priyanka Sinha, Institute of Innovation in Technology and Management

Assistant Professor in Institute of Innovation in Technology and Management, Janakpuri, New Delhi. She earned her Ph.D.(January, 2017) in Management from Indian Institute of Technology (IIT-ISM) Dhanbad, India and her Master Degree (2011) in Business Administration from NIILM-CMS, Greater Noida, Delhi

Saumya Singh, Indian Institute of Technology (IIT-ISM) Dhanbad

Associate Professor in Indian Institute of Technology (IIT-ISM) Dhanbad. She earned her Ph.D (2001) in Management from Purvanchal University, Jaunpur. She earned her Master (1997) in .Marketing  from Purvanchal University

References

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Published
2017-12-22
How to Cite
Sinha, P., & Singh, S. (2017). Comparing Risks and Benefits for Value Enhancement of Online Purchase. Gadjah Mada International Journal of Business, 19(3), 307-327. Retrieved from https://journal.ugm.ac.id/v3/gamaijb/article/view/15599