On risk, convenience, and Internet shopping behavior

By Amit Bhatnagar, Sanjog Misra, H. Rao. CACM, 2000

1,231 citations recorded by the source corpus.

The past century experienced a proliferation of retail formats in the marketplace. However, as a new century begins, these retail formats are being threatened by the emergence of a new kind of store, the online or Internet store. From being almost a novelty in 1995, online retailing sales were expected to reach $7 billion by 2000 [9]. In this increasngly timeconstrained world, Internet stores allow consumers to shop from the convenience of remote locations. Yet most of these Internet stores are losing money [6]. Why is such counterintuitive phenomena prevailing? The explanation may lie in the risks associated with Internet shopping. These risks may arise because consumers are concerned about the security of transmitting credit card information over the Internet. Consumers may also be apprehensive about buying something without touching or feeling it and being unable to return it if it fails to meet their approval. Having said this, however, we must point out that consumers are buying goods on the Internet. This is reflected in the fact that total sales on the Internet are on the increase [8, 11]. Who are the consumers that are patronizing the Internet? Evidently, for them the perception of the risk associated with shopping on the Internet is low or is overshadowed by its relative convenience. This article attempts to determine why certain consumers are drawn to the Internet and why others are not. Since the pioneering research done by Becker [3], it has been accepted that the consumer maximizes his utility subject to not only income constraints but also time constraints. A consumer seeks out his best decision given that he has a limited budget of time and money. While purchasing a product from a store, a consumer has to expend both money and time. Therefore, the consumer patronizes the retail store where his total costs or the money and time spent in the entire process are the least. Since the util-

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Citations in the corpus

Attracting tourists to travel companies’ websites: the structural relationship between website brand, personal value, shopping experience, perceived risk and purchase intention (2018, background): “According to Bhatnagar, Misra, and Rao (2000), two types of risk emerge when purchasing over the Internet: product category risk, which is related to the information availability and the price of the products, and financial risk, which is concerned about stealing, fraud and ultimate loss of…”
An Empirical Study of Consumer Switching from Traditional to Electronic Channels: A Purchase-Decision Process Perspective (2004, background): “of online shopping [58, 59, 58, 61], although others see risk reduction as a key to increase consumers’ participation in e-commerce [11, 68].”
Virtual Product Experience: Effects of Visual and Functional Control of Products on Perceived Diagnosticity and Flow in Electronic Shopping (2004, background): “Despite the development of these features, many researchers continue to doubt the effectiveness of electronic shopping environments [11, 70, 87].”
Dual Sales Channel Management with Service Competition (2008, background): “Retail inconvenience is another driver for why consumers shop online (Bhatnagar et al. 2000, Gilly and Wolfinbarger 2000).”
An Analysis of Factors Affecting on Online Shopping Behavior of Consumers (2012, background): “The level of uncertainty surrounding the online purchasing process influences consumers’ perceptions regarding the perceived risks (Bhatnagar et al. , 2000).”
Multidimensional Facets of Perceived Risk in Mobile Travel Booking (2017, background): “As a result, these two constructs were merged into a single factor, called privacy/security risk (consistent with Bhatnagar, Misra, and Rao 2000; Kim, Ferrin, and Rao 2008; Lee 2009).”
Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior (2002, background): “Unlike offline consumers, online consumers are concerned with those risks inherent in buying on theWeb, risks such as credit card fraud and not receiving the right products (Bhatnagar et al. 2000).”
Perceived value, transaction cost, and repurchase-intention in online shopping: A relational exchange perspective (2014, background): “For instance, via online survey of about 17 product categories, Bhatnagar, Misra, and Rao (2000) conclude that most consumers still perceive the online shopping environment as quite risky, and suggest that perceived costs related to perceived risk reduction become more prominent than convenience.”