B2C e-Commerce Consumer Decision-making Model Based on Perceived Benefit and Perceived Risk

TLDR: This study proposes a consumer decision-making model which based on benefit and risk and evaluate the interaction between risk and benefit and shows that both perceived benefit and perceived risk have strong effects on the purchasing intention, but the effect of benefit on intention is stronger than the effects of risk on intention.

Abstract: This study to analyze the factors that influence consumers online purchasing behavior, we propose a consumer decision-making model which based on benefit and risk and evaluate the interaction between risk and benefit. We also consider some factors that influence consumers’ perceived benefit and perceived risk such as a third-party payment platform, reputation, e-commerce experience, lower price, variety of product, convenience, and ease of use. The model is tested using data gathered from 146 participants. The data analysis is conducted using a structural equation modeling. The results obtained show that both perceived benefit and perceived risk have strong effects on the purchasing intention, but the effect of benefit on intention is stronger than the effect of risk on intention. Reputation, e-commerce experience and lower price have strong effects on consumers’ perceived risk, while e-commerce experience, variety of product, convenience and ease of use have strong effects on consumers’ perceived benefit.