In addition to consumer expectations there are several other key concepts that have
been widely cited as affecting online purchasing behaviour. These are perceived risk and
trust, and loyalty.Perceived risk and trust
Literature suggests the online trading arena is intrinsically different from any other
channel to market and in essence is an unfamiliar environment (Rutter, 2001). Online
consumers are buying into a trading situation that is inherently laden with uncertainty,
lack of cues to reinforce trusting relationships and risk. Risk and trust are multi-dimen-
sional constructs and have been found to improve online sales effectiveness if perceived
risk is reduced and trust established.
Perceived risk conceptualised by Bauer (1960) consists of six components:1 financial risk
2 product performance risk
3 social risk
4 psychological risk
5 physical risk
6 time/convenience loss.CHAPTER 10· BUSINESS-TO-CONSUMER INTERNET MARKETING
Activity 10.2 Design a web site
Design an e-retail web site for a specialist retailer serving a niche market, for example a
specialist health product retailer (see Figure 10.2). Use the four key factors identified by
Wolfinbarger and Gilly (2003) to guide your design. Remember to consider:
1 Who are the online customers?
2 What are the online customer expectations?
3 How can the web site deliver online customer satisfaction?Figure 10.2Simply Vital example of specialist company,
which is using the Internet as a channel to market
Source: http://www.simplyvital.com