Intention to Purchase Luxury Products: Risk Issues in Online Shopping
Keywords:
Purchase Intention, Website Quality, Risk Propensity, Perceived RiskAbstract
The main objective of this study is to examine the effects of website quality, consumer perceived risk, money-back guarantees, quality labels, and risk-taking tendencies on consumers' intention to shop for luxury goods. Data were collected by distributing survey questionnaires online. Data from 249 questionnaires were obtained using a nonprobability sampling technique. Respondents were users of a luxury product website in Indonesia. Furthermore, eight hypotheses were tested using structural equation modeling (SEM) with the AMOS 26 application. This study yielded four main findings: (i) quality labels, money-back guarantees, website quality, and risk-taking were shown to directly influence consumers' perceived risk; (ii) website quality is the dimension that most strongly influences consumers' perceived risk; (iii) money-back guarantees and website quality do not directly influence online shopping intentions; and (iv) consumer-perceived quality and risk labels have been shown to directly influence consumers' intention to buy luxury brands online. This study provides a new and significant contribution because it was conducted in an emerging country. In addition, this study succeeded in obtaining interesting findings in which risk-taking tendencies have been shown to directly influence consumers' perceived risk. Website quality has also been shown to be the strongest determinant of risk perceived by luxury consumers.
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