Comparing online and in-store risks in multichannel shopping

Abstract

Purpose This paper compares empirically the nature, level and influence of perceived risks involved in a retailer’s website and stores, as multichannel shoppers will do when deciding which distribution channel to buy in. Design/methodology/approach The research design uses an online survey of 1,015 multichannel customers that was drawn from the behavioural databases of a French multichannel retailer. Findings Overall risk as well as risks associated with logistics, psychological and performance are higher and more dissuasive for an online purchase; however, financial, time and transaction risks tend predominantly or exclusively to discourage in-store purchasing. Customers’ familiarity with the channel seems to make them more vigilant. Research limitations/implications The concept of risk, and especially financial risk, is variable among researchers, making it more difficult to undertake comparative studies on e-commerce than on stores or products. Practical implications Retailers should not look merely to the salience of an isolated risk factor but rather should consider its actual impact on their customers’ final decision. Nonetheless, retailers will find it more difficult to reduce perceived risk on-line than in-store. Originality/value By focussing on a multichannel retailer’s website and stores and comparing the effects of six types of risk on the purchase attitudes of its multichannel shoppers, this study is distinct from most single-channel studies, which have examined risk inherent in Internet purchasing, handled risk on an experimental website and explored in-store risk. Moreover, the study focuses on the risks entailed by the purchase channel rather than those related to particular products or brands.

Risk, privacy and security concerns in digital retail

“…Financial, product and information risks are significant deterrents of e-commerce (Jacoby and Kaplan, 1972) and m-commerce (Luo et al, 2010) acceptance. Information risks concern transactional security and privacy and are prominently associated with disclosure of credit card information (Alharbi et al, 2013;Bezes, 2016); online disclosure of credit card details often provokes high levels of apprehension due to the prospect of credit card fraud (Andrews & Boyle, 2008;. Psychological risks are also prominent in electronic and mobile commerce as the Internet is considered a primary violator of consumer privacy (Luo et al, 2010).…”

“…With increased levels of e-shopping come heightened benefits of retailers collecting consumer data for marketing opportunities. However, the collection and storing of private consumer data increases the likelihood of hackers obtaining such information for fraudulent purposes and subsequently deters consumers from digital retail engagement (Aguirre et al, 2016;Bezes et al, 2016;Khan, Talib, & Faisal, 2015). Consumer uncertainties and concerns 7 Author Posting © Westburn Publishers Ltd, 2017.…”

A Model of Thai Consumers’ Behavioral Intention: A Study of Generations X and Y

“…Uncertainty is subjective and comes from identifying buying goals and matching these goals with product or brand offering. Consumers search for information to deal with uncertainty and improve the consequences of a purchase decision that is perceived to be risky [31].…”

Millennials' Online Apparel Purchase Decisions through Social Interactions

“…In online shopping, perceived risk is "the subjectively determined expectation of loss by an Internet shopper in contemplating a particular online purchase" (Forsythe & Shi, 2003, p. 869). Compared with purchasing from brick and mortar stores, online shoppers experience more uncertainties and risks, including product performance, financial transaction, privacy and security, convenience, time loss, and logistics (Bezes, 2016;Kushwaha & Shankar, 2013;Lee, Kim, & Fiore, 2010;Yu et al, 2012).…”

“…They may also worry about Internet speed limitations or difficulties with returns and exchanges . Additionally, consumers may perceive logistical risks, because they are concerned about online order pickups, deliveries, or returns (Bezes, 2016).…”