Short answer
To increase online sales, focus on highlighting the advantages of your e-commerce platform and actively addressing and reducing consumer concerns about risks.
- Field
- Innovation & Markets
- Source
- International Journal of Management Studies (2020)
- Method
- Quantitative research using Partial Least Squares Structural Equation Modelling (PLS-SEM).
- Sample
- 380 participants
- Evidence
- Strong effect
Consumers are more likely to engage in online shopping when they perceive greater benefits and fewer risks, with their intention to purchase acting as a crucial link. This innovation & markets research insight is drawn from a 2020 study published in International Journal of Management Studies. Using Quantitative research using partial least squares structural equation modelling (pls-sem). with 380 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: To increase online sales, focus on highlighting the advantages of your e-commerce platform and actively addressing and reducing consumer concerns about risks.
Perceived benefits drive online shopping, while risks deter it, mediated by purchase intention.
Consumers are more likely to engage in online shopping when they perceive greater benefits and fewer risks, with their intention to purchase acting as a crucial link.
International Journal of Management Studies · 2020
Key Findings
- 01Perceived benefits (convenience, variety) have a positive influence on online shopping behavior.
- 02Perceived risks (product risk, privacy risk) have a negative influence on online shopping behavior.
- 03Consumer purchase intention mediates the relationship between perceived benefits/risks and online shopping behavior.
Application
Design takeaway
To increase online sales, focus on highlighting the advantages of your e-commerce platform and actively addressing and reducing consumer concerns about risks.
How to apply
When designing an e-commerce platform or marketing campaign, prioritize clear communication of benefits and implement visible trust-building elements to counter potential risks.
Project actions
- 01When researching online shopping, consider surveying a diverse group of potential users, not just students.
- 02Use clear, direct questions to gauge perceptions of benefits and risks.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust statistical method (PLS-SEM) for analyzing complex relationships.
- +Addresses a relevant and contemporary topic in consumer behavior.
Limitations
The sample size might be too narrow if it only includes students from a few universities. Generalizability to different age groups or cultural contexts could be limited.
Reliability & validity
The use of PLS-SEM suggests a focus on predictive accuracy and model fit, contributing to the validity of the relationships found. Reliability would depend on the consistency of the survey instrument.
Think critically
How might cultural differences in risk aversion or trust in online platforms affect the generalizability of these findings beyond the Pakistani context?
Design Principles
"The perceived value proposition of an online offering must outweigh the perceived risks to foster purchase intention and subsequent behavior."
Understanding the balance between perceived advantages and potential drawbacks is critical for businesses operating in the e-commerce space. This insight helps in tailoring marketing strategies and product offerings to enhance customer trust and encourage online transactions.
What This Means for Your Design
People buy more online when they think it's easy and there are lots of options, but they buy less if they're worried about problems with the product or their information being stolen. Whether they decide to buy depends a lot on these feelings.
How to use in your project
- 1.Reference this study when discussing the factors that influence user adoption of digital products or services, particularly in the context of online retail.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that perceived benefits, such as convenience and product variety, positively influence online shopping behavior, while perceived risks, like product and privacy concerns, negatively impact it. Consumer purchase intention acts as a significant mediator in this relationship, underscoring the need for e-commerce platforms to actively promote advantages and build trust to encourage transactions.
Source
International Journal of Management Studies
PERCEIVED BENEFITS AND PERCEIVED RISKS EFFECT ON ONLINE SHOPPING BEHAVIOR WITH THE MEDIATING ROLE OF CONSUMER PURCHASE INTENTION IN PAKISTAN
journal · 2020
View sourceQuestions About This Research
- What does the research say about perceived benefits drive online shopping, while risks deter it, mediated by purchase intention?
- To increase online sales, focus on highlighting the advantages of your e-commerce platform and actively addressing and reducing consumer concerns about risks. Evidence: International Journal of Management Studies (2020).
- Why does "Perceived benefits drive online shopping, while risks deter it, mediated by purchase intention." matter for design?
- Understanding the balance between perceived advantages and potential drawbacks is critical for businesses operating in the e-commerce space. This insight helps in tailoring marketing strategies and product offerings to enhance customer trust and encourage online transactions.
- How can designers apply this research?
- To increase online sales, focus on highlighting the advantages of your e-commerce platform and actively addressing and reducing consumer concerns about risks.
- What were the main findings?
- Perceived benefits (convenience, variety) have a positive influence on online shopping behavior.. Perceived risks (product risk, privacy risk) have a negative influence on online shopping behavior.. Consumer purchase intention mediates the relationship between perceived benefits/risks and online shopping behavior.
- What research method was used?
- Quantitative research using Partial Least Squares Structural Equation Modelling (PLS-SEM). with 380 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from International Journal of Management Studies.
- What should I do differently in my next project?
- When designing an e-commerce platform or marketing campaign, prioritize clear communication of benefits and implement visible trust-building elements to counter potential risks.
- What are the limitations?
- The study was conducted with university students, which may not represent the broader population. The findings are specific to the Pakistani market context.