Applying Theory of Perceived Risk and Technology Acceptance Model in the Online Shopping Channel
As the advancement of technology, online shopping channel develops rapidly in recent years. According to the report of Taiwan Network Information Center, there are almost eighty percents of internet population shopping in online channel. Synthesizing insights from the previous research, this study develops the conceptual model to integrate Theory of Perceived Risk (TPR) and Technology Acceptance Model (TAM) to apply in online shopping. Using data collected from 637 respondents from online survey website, we use structural equation modeling to test measurement and structural models. The results suggest the need for consideration of perceived risk as an antecedent in the Technology Acceptance Model. The limitations and implications are discussed.
[1] J. Park, D. Lee, and J. Ahn, "Risk-focused e-commerce adoption model:
A cross-country study," Journal of Global Information Technology
Management, vol. 7, no.2, pp. 6-30, 2004.
[2] A. Bhatnagar, S. Misra, and H. R. Rao, "On risk, convenience and
internet shopping behavior, association for computing machinery,"
Communications of the ACM, vol. 43, no.11, pp. 98-105, 2000.
[3] Y. Liebermann and S. Stashevsky, "Perceived risks as barriers to internet
and e-commerce usage," Qualitative Market Research, vol. 5, no.4, pp.
291-300, 2002.
[4] R. A. Bauer, Consumer Behaviour as Risk Taking. Ed. D. F. Cox. 1967.
Risk Taking and Information Handling in Consumer Behavior, Boston,
MA: Harvard University Press: 1960, pp. 23-33.
[5] F. D. Davis, "Perceived usefulness, perceived ease of use, and use
acceptance of information technology," MIS Quarterly, vol. 13, no.3, pp.
319-340, 1989.
[6] T. P. Y. Monsuwe, B. G. C. Dellaert, and K. D. Ruyter, "What drives
consumers to shop online? A literature review," International Journal of
Service Industry Management, Vol. 15, no.1, pp. 102-121, 2004.
[7] A. Chiravuri and D. Nazareth, "Consumer trust in electronic commerce:
An alternative framework using technology acceptance," Seventh
Americas Conference on Information Systems, 2001.
[8] R. D. Hof, Don't Cut Back Now. Business Week, Issue 3751, 2001.
[9] L. M. Applegate, F. W. McFarlan, and J. L. McKenny, Corporate
Information Systems Management: Text and Case. Irwin, Chicago, 1996.
[10] B. Dollin, S. Dillon, F. Thompson, and J. L. Corner, "Perceived risk,
internet shopping experience and online purchasing behavior: A New
Zealand perspective," Journal of Global Information Management, vol.
13, no.2, pp. 66-88, 2005.
[11] S. J. Tan, "Strategies for reducing consumers- risk aversion in internet
shopping," Journal of Consumer Marketing, vol. 16, no.2, pp. 163-180,
1999.
[12] W. Huang, H. Schrank, and A. J. Dubinsky, "Effect of brand names on
consumers- risk perceptions of online shopping," Journal of Consumer
Behavior, vol. 4, no.1, pp. 40-50, 2004.
[13] G. Pires, J. Stanton, and A. Eckford, "Influences on the perceived risk of
purchasing online," Journal of Consumer Behavior, vol. 4, no.2, pp.
118-131, 2004.
[14] V. W. Mitchell, "Consumer perceived risk: Conceptualizations and
models," European Journal of Marketing, vol. 33, no.1, pp. 164-196,
1999.
[15] J. R. Bettman, "Perceived risk and its components: A model and
empirical test," Journal of Marketing Research, vol. 10, no.2, pp. 184-190,
1973.
[16] S. M. Cunningham, The Major Dimensions of Perceived Risk. In D.F.
Cox(ed), Risk Taking and Information Handing in Consumer Behavior,
Boston: Harvard University Press: pp. 82-108, 1967.
[17] G. R. Dowling and R. Staelin, "A model of perceived risk and intended
risk handling activity," Journal of Consumer Research, vol. 21, no.1, pp.
119-134, 1994.
[18] G. R. Dowling, "Perceived risk: The concept and its measurement,"
Psychology and Marketing, vol. 3, no.3, pp. 193-210, 1986.
[19] D. F. Cox and S. U. Rich, "Perceived risk and consumer decision-making:
The case of telephone shopping," Journal of Marketing Research, vol. 1,
no.4, pp. 32-39, 1964.
[20] A. Rindfleisch and D. Crockett, "Cigarette smoking and perceived risk: A
multidimensional investigation," Journal of Public & Marketing, Vol. 18,
no.2, pp. 159-171, 1999.
[21] R. Lutz and P. Reilly, "An exploration of the effects of perceived social
and performance risk on consumer information acquisition," In
Proceedings, Fourth Annual Conference, The Association for Consumer
Research, pp. 393-405, 1973.
[22] M. Fishbein and I. Ajzen, Belief, Attitude, Intention and Behavior: An
Introduction to Theory and Research. Addsion-Wesley, reading, MA,
1975.
[23] F. D. Davis, A Technology Acceptance Model of Empirically Testing New
End-User Information Systems: Theory and Results, Doctoral
Dissertation, Sloan School of Management, Massachusetts Institute of
Technology, 1986.
[24] F. D. Davis, R. P. Bagozzi, and P. R. Warshaw, "User acceptance of
computer technology: Comparison of two theoretical models,"
Management Science, vol. 35, no.8, pp. 982-1003, 1989.
[25] R. Agarwal and J. Prasad, "Are individual differences germane to the
acceptance of new information technologies?" Decision Science, vol. 30,
no.2, pp. 361-391, 1999.
[26] H. Mallette and R. Fisher, "The effects of non-volitional use on
perceptions and intention of end user," 28th Annual Atlantic Schools of
Business Conference, Wolfville, Nova Scotia, 1998.
[27] N. Luhmann, Trust and Power. New York, New York, John Wiley and
Sons, 1979.
[28] O. E. Williamson, The Economic Institutions of Capitalism: Firms,
Markets, Relational Contracting. New York, New York: The Free Press,
1985.
[29] D. Gefen, E. Karahanna, and D. W. Straub, "Trust and TAM in online
shopping: An integrated model," MIS Quarterly, vol. 27, no.1, pp. 51-90,
2003.
[30] D. Gefen and D. W. Straub, "Consumer trust in B2C e-commerce and the
importance of social presence: Experiments in e-products and
e-services," Omega, vol. 32, no.6, pp. 407-424, 2004.
[31] S. L. Jarvenpaa, N. Tractinsky, and M. Vitale, "Consumer trust in an
internet store," Information Technology and Management, vol. 1, no.12,
pp. 45-71, 2000.
[32] L. R. Vijayasarathy and J. M. Jones, "Print and internet catalog shopping:
Assessing attitudes and intentions," Internet Research, vol. 10, no.3, pp.
191-202, 2000.
[33] X. Liu and K. K. Wei, "An empirical study of product differences in
consumers- e-commerce adoption behavior," Electronic Commerce
Research and Applications, vol. 2, no.5, pp. 229-239, 2003.
[34] H. Van der Heijden, T. Verhagen, and M. Creemers, "Understanding
online purchase intentions: Contributions from technology and trust
perspectives," European Journal of Information Systems, vol. 12, no.1, pp.
41-48, 2003.
[35] F. D. Davis, "User acceptance of information technology: System
characteristics, user perceptions and behavioral impacts," International
Journal of Man-Machine Studies, vol. 38, no.3, pp. 475-487, 1993.
[36] J. W. Moon and Y. G. Kim, "Extending the TAM for a world-wide-web
context," Information & Management, vol. 38, no.4, pp. 217-230, 2001.
[37] M. Featherman and P. Pavlou, "Predicting E-services adoption: A
perceived risk facets perspective," International Journal of
Human-Computer Studies, vol. 59, no.4, pp. 451-471, 2003.
[38] C. L. Hsu and H. P. Lu, "Why do people play on-line games? An extended
TAM with social influences and flow experience," Information &
Management, vol. 41, no.7, pp. 853-868, 2004.
[39] J. Yu, I. Ha, M. Choi, and J. Rho, "Extending the TAM for a t-commerce,"
Information & Management, vol. 42, no.7, pp. 965-976, 2005.
[40] B. Suh and I. Han, "The impact of customer trust and perception of
security control on the acceptance of electronic commerce," International
Journal of Electronic Commerce, vol. 7, no.3, pp. 135-161, 2003a.
[41] B. Suh and I. Han, "Effect of trust on customer acceptance of internet
banking," Electronic Commerce Research and Applications, vol. 1, no.2,
pp. 247-263, 2003b.
[42] I. L. Wu and J. L. Chen, "An extension of trust and TAM model with TPB
in the initial adoption of on-line tax: An empirical study,"
Human-Computer Studies, vol. 62, no.6, pp. 784-808, 2005.
[43] S. Bernadette, "Empirical evaluation of the revised technology
acceptance model," Management Science, vol. 42, no.1, pp. 85-93, 1996.
[44] P. A. Pavlou, "Consumer acceptance of electronic
commerceÔÇöIntegrating trust and risk with the Technology Acceptance
Model," International Journal of Electronic Commerce, vol. 7, no.3, pp.
69-103, 2003.
[45] V. Venkatesh, M. G. Morris, G. B. Davis, and F. D. Davis, "User
acceptance of information technology: Toward a unified view," MIS
Quarterly, vol. 27, no.3, pp. 425-478, 2003.
[46] P. M. Podsakoff and D. W. Organ, "Self-reports in organizational research:
Problems and prospects," Journal of Management, vol. 12, no. 4, pp.
531-544, 1986.
[47] Y. Malhotra and D. F. Galletta, "Extending the technology acceptance
model to account for social influence: Theoretical bases and empirical
validation," Proceedings of the 32nd Hawaii International Conference on
System Sciences: pp. 1-14, 1999.
[48] J. C. Nunnally, Psychometric Theory. New York: McGraw-Hill, 1978.
[49] R. P. Bagozzi and Y. Yi, "On the evaluation of structural evaluation
models," Journal of the Academy of Marketing Science, vol. 16, no.1,
pp.74-94, 1988.
[50] J. Baker, A. Parasuraman, D. Grewal, and G. B. Voss, "The influence of
multiple store environment cues on perceived merchandise value and
patronage intentions," Journal of Marketing, vol. 66, no.2, pp. 120-141,
2002.
[51] J. C. Anderson and D. W. Gerbing, "Structural equation modeling in
practice: A review and recommended two-step approach," Psychological
Bulletin, vol. 103, no.3, pp. 411-423, 1988.
[52] C. Fornell and D. F. Larcker, "Evaluating structural evaluation models
with unobservable variables and measurement error," Journal of
Marketing Research, vol. 18, no.1, pp. 39-50, 1981.
[53] G. T. M. Hult, R. F. Hurley, L. C. Giunipero, and E. L. Nichols,
"Organizational learning in global purchasing: A model and test of
internal users and corporate buyers," Decision Sciences, vol. 31, no.2, pp.
293-325, 2000.
[1] J. Park, D. Lee, and J. Ahn, "Risk-focused e-commerce adoption model:
A cross-country study," Journal of Global Information Technology
Management, vol. 7, no.2, pp. 6-30, 2004.
[2] A. Bhatnagar, S. Misra, and H. R. Rao, "On risk, convenience and
internet shopping behavior, association for computing machinery,"
Communications of the ACM, vol. 43, no.11, pp. 98-105, 2000.
[3] Y. Liebermann and S. Stashevsky, "Perceived risks as barriers to internet
and e-commerce usage," Qualitative Market Research, vol. 5, no.4, pp.
291-300, 2002.
[4] R. A. Bauer, Consumer Behaviour as Risk Taking. Ed. D. F. Cox. 1967.
Risk Taking and Information Handling in Consumer Behavior, Boston,
MA: Harvard University Press: 1960, pp. 23-33.
[5] F. D. Davis, "Perceived usefulness, perceived ease of use, and use
acceptance of information technology," MIS Quarterly, vol. 13, no.3, pp.
319-340, 1989.
[6] T. P. Y. Monsuwe, B. G. C. Dellaert, and K. D. Ruyter, "What drives
consumers to shop online? A literature review," International Journal of
Service Industry Management, Vol. 15, no.1, pp. 102-121, 2004.
[7] A. Chiravuri and D. Nazareth, "Consumer trust in electronic commerce:
An alternative framework using technology acceptance," Seventh
Americas Conference on Information Systems, 2001.
[8] R. D. Hof, Don't Cut Back Now. Business Week, Issue 3751, 2001.
[9] L. M. Applegate, F. W. McFarlan, and J. L. McKenny, Corporate
Information Systems Management: Text and Case. Irwin, Chicago, 1996.
[10] B. Dollin, S. Dillon, F. Thompson, and J. L. Corner, "Perceived risk,
internet shopping experience and online purchasing behavior: A New
Zealand perspective," Journal of Global Information Management, vol.
13, no.2, pp. 66-88, 2005.
[11] S. J. Tan, "Strategies for reducing consumers- risk aversion in internet
shopping," Journal of Consumer Marketing, vol. 16, no.2, pp. 163-180,
1999.
[12] W. Huang, H. Schrank, and A. J. Dubinsky, "Effect of brand names on
consumers- risk perceptions of online shopping," Journal of Consumer
Behavior, vol. 4, no.1, pp. 40-50, 2004.
[13] G. Pires, J. Stanton, and A. Eckford, "Influences on the perceived risk of
purchasing online," Journal of Consumer Behavior, vol. 4, no.2, pp.
118-131, 2004.
[14] V. W. Mitchell, "Consumer perceived risk: Conceptualizations and
models," European Journal of Marketing, vol. 33, no.1, pp. 164-196,
1999.
[15] J. R. Bettman, "Perceived risk and its components: A model and
empirical test," Journal of Marketing Research, vol. 10, no.2, pp. 184-190,
1973.
[16] S. M. Cunningham, The Major Dimensions of Perceived Risk. In D.F.
Cox(ed), Risk Taking and Information Handing in Consumer Behavior,
Boston: Harvard University Press: pp. 82-108, 1967.
[17] G. R. Dowling and R. Staelin, "A model of perceived risk and intended
risk handling activity," Journal of Consumer Research, vol. 21, no.1, pp.
119-134, 1994.
[18] G. R. Dowling, "Perceived risk: The concept and its measurement,"
Psychology and Marketing, vol. 3, no.3, pp. 193-210, 1986.
[19] D. F. Cox and S. U. Rich, "Perceived risk and consumer decision-making:
The case of telephone shopping," Journal of Marketing Research, vol. 1,
no.4, pp. 32-39, 1964.
[20] A. Rindfleisch and D. Crockett, "Cigarette smoking and perceived risk: A
multidimensional investigation," Journal of Public & Marketing, Vol. 18,
no.2, pp. 159-171, 1999.
[21] R. Lutz and P. Reilly, "An exploration of the effects of perceived social
and performance risk on consumer information acquisition," In
Proceedings, Fourth Annual Conference, The Association for Consumer
Research, pp. 393-405, 1973.
[22] M. Fishbein and I. Ajzen, Belief, Attitude, Intention and Behavior: An
Introduction to Theory and Research. Addsion-Wesley, reading, MA,
1975.
[23] F. D. Davis, A Technology Acceptance Model of Empirically Testing New
End-User Information Systems: Theory and Results, Doctoral
Dissertation, Sloan School of Management, Massachusetts Institute of
Technology, 1986.
[24] F. D. Davis, R. P. Bagozzi, and P. R. Warshaw, "User acceptance of
computer technology: Comparison of two theoretical models,"
Management Science, vol. 35, no.8, pp. 982-1003, 1989.
[25] R. Agarwal and J. Prasad, "Are individual differences germane to the
acceptance of new information technologies?" Decision Science, vol. 30,
no.2, pp. 361-391, 1999.
[26] H. Mallette and R. Fisher, "The effects of non-volitional use on
perceptions and intention of end user," 28th Annual Atlantic Schools of
Business Conference, Wolfville, Nova Scotia, 1998.
[27] N. Luhmann, Trust and Power. New York, New York, John Wiley and
Sons, 1979.
[28] O. E. Williamson, The Economic Institutions of Capitalism: Firms,
Markets, Relational Contracting. New York, New York: The Free Press,
1985.
[29] D. Gefen, E. Karahanna, and D. W. Straub, "Trust and TAM in online
shopping: An integrated model," MIS Quarterly, vol. 27, no.1, pp. 51-90,
2003.
[30] D. Gefen and D. W. Straub, "Consumer trust in B2C e-commerce and the
importance of social presence: Experiments in e-products and
e-services," Omega, vol. 32, no.6, pp. 407-424, 2004.
[31] S. L. Jarvenpaa, N. Tractinsky, and M. Vitale, "Consumer trust in an
internet store," Information Technology and Management, vol. 1, no.12,
pp. 45-71, 2000.
[32] L. R. Vijayasarathy and J. M. Jones, "Print and internet catalog shopping:
Assessing attitudes and intentions," Internet Research, vol. 10, no.3, pp.
191-202, 2000.
[33] X. Liu and K. K. Wei, "An empirical study of product differences in
consumers- e-commerce adoption behavior," Electronic Commerce
Research and Applications, vol. 2, no.5, pp. 229-239, 2003.
[34] H. Van der Heijden, T. Verhagen, and M. Creemers, "Understanding
online purchase intentions: Contributions from technology and trust
perspectives," European Journal of Information Systems, vol. 12, no.1, pp.
41-48, 2003.
[35] F. D. Davis, "User acceptance of information technology: System
characteristics, user perceptions and behavioral impacts," International
Journal of Man-Machine Studies, vol. 38, no.3, pp. 475-487, 1993.
[36] J. W. Moon and Y. G. Kim, "Extending the TAM for a world-wide-web
context," Information & Management, vol. 38, no.4, pp. 217-230, 2001.
[37] M. Featherman and P. Pavlou, "Predicting E-services adoption: A
perceived risk facets perspective," International Journal of
Human-Computer Studies, vol. 59, no.4, pp. 451-471, 2003.
[38] C. L. Hsu and H. P. Lu, "Why do people play on-line games? An extended
TAM with social influences and flow experience," Information &
Management, vol. 41, no.7, pp. 853-868, 2004.
[39] J. Yu, I. Ha, M. Choi, and J. Rho, "Extending the TAM for a t-commerce,"
Information & Management, vol. 42, no.7, pp. 965-976, 2005.
[40] B. Suh and I. Han, "The impact of customer trust and perception of
security control on the acceptance of electronic commerce," International
Journal of Electronic Commerce, vol. 7, no.3, pp. 135-161, 2003a.
[41] B. Suh and I. Han, "Effect of trust on customer acceptance of internet
banking," Electronic Commerce Research and Applications, vol. 1, no.2,
pp. 247-263, 2003b.
[42] I. L. Wu and J. L. Chen, "An extension of trust and TAM model with TPB
in the initial adoption of on-line tax: An empirical study,"
Human-Computer Studies, vol. 62, no.6, pp. 784-808, 2005.
[43] S. Bernadette, "Empirical evaluation of the revised technology
acceptance model," Management Science, vol. 42, no.1, pp. 85-93, 1996.
[44] P. A. Pavlou, "Consumer acceptance of electronic
commerceÔÇöIntegrating trust and risk with the Technology Acceptance
Model," International Journal of Electronic Commerce, vol. 7, no.3, pp.
69-103, 2003.
[45] V. Venkatesh, M. G. Morris, G. B. Davis, and F. D. Davis, "User
acceptance of information technology: Toward a unified view," MIS
Quarterly, vol. 27, no.3, pp. 425-478, 2003.
[46] P. M. Podsakoff and D. W. Organ, "Self-reports in organizational research:
Problems and prospects," Journal of Management, vol. 12, no. 4, pp.
531-544, 1986.
[47] Y. Malhotra and D. F. Galletta, "Extending the technology acceptance
model to account for social influence: Theoretical bases and empirical
validation," Proceedings of the 32nd Hawaii International Conference on
System Sciences: pp. 1-14, 1999.
[48] J. C. Nunnally, Psychometric Theory. New York: McGraw-Hill, 1978.
[49] R. P. Bagozzi and Y. Yi, "On the evaluation of structural evaluation
models," Journal of the Academy of Marketing Science, vol. 16, no.1,
pp.74-94, 1988.
[50] J. Baker, A. Parasuraman, D. Grewal, and G. B. Voss, "The influence of
multiple store environment cues on perceived merchandise value and
patronage intentions," Journal of Marketing, vol. 66, no.2, pp. 120-141,
2002.
[51] J. C. Anderson and D. W. Gerbing, "Structural equation modeling in
practice: A review and recommended two-step approach," Psychological
Bulletin, vol. 103, no.3, pp. 411-423, 1988.
[52] C. Fornell and D. F. Larcker, "Evaluating structural evaluation models
with unobservable variables and measurement error," Journal of
Marketing Research, vol. 18, no.1, pp. 39-50, 1981.
[53] G. T. M. Hult, R. F. Hurley, L. C. Giunipero, and E. L. Nichols,
"Organizational learning in global purchasing: A model and test of
internal users and corporate buyers," Decision Sciences, vol. 31, no.2, pp.
293-325, 2000.
@article{"International Journal of Business, Human and Social Sciences:64725", author = "Yong-Hui Li and Jing-Wen Huang", title = "Applying Theory of Perceived Risk and Technology Acceptance Model in the Online Shopping Channel", abstract = "As the advancement of technology, online shopping channel develops rapidly in recent years. According to the report of Taiwan Network Information Center, there are almost eighty percents of internet population shopping in online channel. Synthesizing insights from the previous research, this study develops the conceptual model to integrate Theory of Perceived Risk (TPR) and Technology Acceptance Model (TAM) to apply in online shopping. Using data collected from 637 respondents from online survey website, we use structural equation modeling to test measurement and structural models. The results suggest the need for consideration of perceived risk as an antecedent in the Technology Acceptance Model. The limitations and implications are discussed.
", keywords = "perceived risk, perceived usefulness, perceived ease
of use, behavioral intention, actual purchase behavior", volume = "3", number = "5", pages = "584-7", }
