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Online consumer purchase behaviour : an experimental study on the effects of online reviews valence and information completeness on consumer’s trust, perceived risk and intention to purchase through Facebook in the Netherlands

Omhandoro, P. O (2019) Online consumer purchase behaviour : an experimental study on the effects of online reviews valence and information completeness on consumer’s trust, perceived risk and intention to purchase through Facebook in the Netherlands.

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Abstract:Purpose: Studies have shown that among several social media networks, purchasing through Facebook has been growing in the field of business and academic articles. Today, some organizations and online sellers are allowing consumers to buy their product and services through Facebook sites without needing to leave Facebook platform. On the other hand, online shoppers are also bringing their online experience into their own social platform rather than engaging directly on organization websites. Thus, the main objectives of this study is to examined how online reviews, information completeness and price factor influences consumer; (1) Perceived risks such as process risk, financial risks and privacy risk, (2) Trust such as benevolence trust, competence trust and integrity trust and (3) purchase intention to buy from a Facebook seller’s account. Method: A 2x2x2 experimental study was performed in which information completeness (complete information vs. incomplete information), online reviews valence (mix reviews vs. purely positive reviews), and the product price (high vs. low) were manipulated. The effects and interactions of these variables on perceived risks, trusts and purchase intention were assessed. For this study, 216 respondents residing in the Netherlands were asked to participate in the experimental research. The participants were showed the manipulated Facebook seller’s timeline and based on that, they were asked to responds to some statement concerning their perceived risks, trust and purchase intention. Results: A MANOVA analyses conducted on the results from survey of 216 participants showed no significant effects of information completeness and product price on perceived risks (process risk, financial risks and privacy risk), trust (benevolence trust, competence trust and integrity trust) and purchase intention. However, there is a main effect found for reviews valence on process risk. Also, two way interaction effects were found for information completeness and reviews valence on privacy risk. Lastly, three way interaction effects were found for online reviews, information completeness and product price on purchase intention. Conclusion: The findings of this study suggest that mix reviews valence (positive and negative) can influence consumer process risk perception when considering whether to purchase from a seller through Facebook account. Importantly, consumers often review comments on a Facebook timeline before engaging or purchase from a seller on Facebook environment. Online sellers should take into account the important role reviews valence can have on online shopper’s process risk. In a summary, there is need not to underestimate the impact reviews can have on online shopper purchasing behaviour, in particular on a Facebook context. Keywords: Social media, facebook, online reviews, information completeness, perceive risks, trust, online sellers and vendors.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies MSc (60713)
Link to this item:http://purl.utwente.nl/essays/80039
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