Perceived risk and trust as antecedents of online purchasing behavior in the USA gemstone industry

Steven D'Alessandro, Antonia Girardi, Leela Tiangsoongnern

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

The purpose of this study is to seek to investigate the impact that perceived risk and trust have on online purchasing behavior, in particular the nature of purchasing associations within the expensive, complex, high risk and credence products such as gemstones. An online survey of purchases of Thai gemstones was used to collect the data. Partial Least Squares was used to test the conceptual model of the study. The results of this study suggest that the type of internet marketing strategy used by the seller (the place strategy) and the buyer's privacy and security practices influence a buyer's perceived risk to purchase gemstones online. Furthermore, the study showed that perceived risk reduces trust and perceived risk reduces online purchases. The implications of these results are that privacy and security concerns of online buyers must be addressed in order to reduce perceived risk and thereby increase trust which is fundamental to the amount purchased online. Online marketers of highly risky products need to consider that policies that promote trust and reduce risk are important means of increasing purchases. In particular, the use of multichannels will reduce perceived risk. This is a rare study which examines purchases of expensive, complex, high risk and credence products such as gemstones. It is also a study which examines the behaviour of organisational buyers. Also actual reported online purchases are investigated rather than just intent.

Original languageEnglish
Pages (from-to)433-460
Number of pages28
JournalAsia Pacific Journal of Marketing and Logistics
Volume24
Issue number3
DOIs
Publication statusPublished - 15 Jun 2012

Keywords

  • Consumer behaviour
  • Internet marketing
  • Internet retail
  • Organizational buying behaviour
  • Perceived risk
  • PLS
  • Trust
  • United States of America

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