The diagnostic role of signals in the context of perceived risks in online shopping: Do signals matter more on the Web?
Abstract
Four experimental studies examine the differential effects of three signals—retailer reputation, perceived advertising expenses, and warranties—on consumer risk perceptions, across two (online and in-store) shopping conditions. The results of three studies suggest that for products with high non-digital attributes (e.g., shirts and jeans), consumers perceive higher risks in online than in in-store settings. Also, for these types of products, mainly due to the non-availability of other significant cues, consumers tend to rely more on signals as diagnostic cues in online shopping conditions. Effectively, the results of these three studies imply that signals are stronger risk reducers in online than in in-store shopping conditions for products high in non-digital attributes. The fourth study tests the boundary condition whereby the diagnostic effects of signals are diminished for products with high digital attributes (e.g., music CDs).
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The finding that product and convenience risk are not significant contrasts with existing studies where product and convenience risk are important significant risk factors for not shopping online.
“This is also in contrast with the findings of the existing studies (e.g.Forsythe and Shi, 2003;Biswas and Biswas, 2004) where product and convenience risk are important significant risk factors for not shopping online.”
From An Analysis of Factors Affecting on Online Shopping Behavior of Consumers (2012) · cites this paper as Biswas and Biswas, 2004
Cites
The Market for "Lemons": Quality Uncertainty and the Market Mechanism
Akerlof, G. A. (1970) · The Quarterly Journal of Economics · doi:10.2307/1879431 · Cited by 23,016 · see citing works
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Bart, Y., Shankar, V., Sultan, F., & Urban, G. L. (2005) · Journal of Marketing · doi:10.1509/jmkg.2005.69.4.133 · Cited by 1,482 · see citing works
An Analysis of Factors Affecting on Online Shopping Behavior of Consumers
Moshrefjavadi, M. H., Rezaie Dolatabadi, H., Nourbakhsh, M., Poursaeedi, A., & Asadollahi, A. (2012) · International Journal of Marketing Studies · doi:10.5539/ijms.v4n5p81 · Cited by 383 · see citing works
“This finding is compatible with findings of the Forsythe and Shi (2003) and Biswas and Biswas (2004).”
ResultCredibility: A multidisciplinary framework
Rieh, S. Y., & Danielson, D. R. (2007) · Annual Review of Information Science and Technology · doi:10.1002/aris.2007.1440410114 · Cited by 336 · see citing works
Marriott, H. R., & Williams, M. D. (2018) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2018.01.017 · Cited by 270 · see citing works
Advertising benefits from ethical Artificial Intelligence algorithmic purchase decision pathways
Rodgers, W., & Nguyen, T. (2022) · Journal of Business Ethics · doi:10.1007/s10551-022-05048-7 · Cited by 137 · see citing works
The influence of perceived risk on mobile shopping cart abandonment
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Hsu, L.-L., Chen, S.-J., Chiu, M.-C., & Chen, J. C. H. (2015) · Human Systems Management · doi:10.3233/hsm-140827 · Cited by 7 · see citing works
- Authors
- Biswas, D., & Biswas, A.
- Affiliations
- Bentley University (US)
- Louisiana State University (US)
- Venue
- Journal of Interactive Marketing
- Publisher
- SAGE Publications
- Published
- 2004-08
- Volume
- 18
- Issue
- 3
- Pages
- 30-45
- ISSN
- 1094-9968 (ISSN-L)
- 1520-6653
- OpenAlex
- W2001229979
- Cited by
- 294
- References
- 1
- Citations by year
- 2026: 3 · 2025: 8 · 2024: 15 · 2023: 4 · 2022: 26 · 2021: 25 · 2020: 12 · 2019: 17 · 2018: 20 · 2017: 11 · 2016: 9 · 2015: 19 · 2014: 18 · 2013: 14 · 2012: 19
- FWCI
- 19.79
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Interactive Marketing (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior and Marketing Influence
- Social Sciences › Decision Sciences › Information Systems and Management › Technology Adoption and User Behaviour
- Keywords
- online shopping, risk perception, diagnostic cues, retailer reputation, product warranty, in-store shopping, purchase decision, boundary conditions
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