Other dimensions of perceived risk concern the medium of the Internet itself, rather than the consequences of purchas- ing a particular product. They are related to consumers’ perceptions and beliefs about the Internet as a trustworthy shopping me- dium (Bhatnagar et al., 2000; Lee & Tur- ban, 2001; Lim, 2003). For example, a com- mon perception among consumers is that communicating credit card information over the Internet is inherently risky due to the possibility of credit card fraud (Bhatnagar et al., 2000; Furnell & Karweni, 1999; George, 2002; Hoffman, Novak & Peralta, 1999; Jarvenpaa & Todd, 1997; Jones & Vijayasarathy, 1998; Liebermann & Stashevsky, 2002). George (2002) found that beliefs about the trustworthiness of the Internet were associated with positive atti-
Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Journal of Global Information Management, 13(2), 66-88, April-June 2005 69 tudes toward Internet purchasing. In a sur- vey of US online shoppers, Ranganathan and Ganapathy (2002) found that security was a major factor in discriminating be- tween high and low intentions to purchase online. However, Swaminathan, Lepkowska-White, and Rao (1999) re- ported that consumers in their study seemed less concerned about the security of online transactions. Apart from concerns about the secu- rity of Internet transactions, Internet trust- worthiness seems also to relate to consum- ers’ concerns about privacy. These con- cerns include the unauthorized acquisition of personal information during Internet use or the provision of personal information collected by companies to third parties (Furnell & Karweni, 1999; George, 2002; Hoffman et al., 1999; Lim, 2003; Wang, Lee & Wang, 1998). The available litera- ture on Internet purchasing and privacy suggests that a large number of Internet consumers do not trust Web providers enough to exchange personal information with them (Hoffman et al., 1999; Liebermann & Stashevsky, 2002). Hoffman et al. (1999) suggest that with increasing privacy concerns, the likelihood of purchasing online decreases. Similarly, George (2002) found that a belief in the privacy of personal information was asso- ciated with negative attitudes toward Internet purchasing. Swaminathan et al. (1999) found that consumers who pur- chased more on the Internet were more concerned about the creation of privacy laws. The preceding discussion leads to the following hypothesis: H 1 : Consumers who place importance on the perceived risk of Internet shopping are less likely to purchase online. INTERNET SHOPPING EXPERIENCE For many consumers, shopping is an important personal and social activity. At- tributes of the shopping experience that in- fluence shopping behavior include enjoy- ment, convenience, and social interaction (Jarvenpaa & Todd, 1997). Consistent with the earlier study of Jarvenpaa & Todd (1997), Vijayasarathy & Jones (2000) found that Internet shopping experience was sig- nificantly associated with attitudes to Internet shopping and intentions to shop online. Both studies measured shopping experience across items related to enjoy-
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