Perceived Risk Perceived Risk

Li, Rong. Kim, JaeJon, Park, JaeSung 272

2.2 E-commerce Knowledge

E-commerce knowledge means a customer’s knowledge of e-commerce related technology and basic knowledge necessary for actually using e-commerce. This kind of knowledge includes the know-how and skill of accomplishing an e-transaction activity and using the various kinds of technologies and methods required to perform an e- transaction Baek et al., 2006. E-commerce knowledge can be broken into two divisions: “skill” and “control or familiarity”. While “skill” refers to the Web consumer’s capacity for action during the online navigation process, “control or familiarity” comes from both the Web user’s perception of their ability to successfully navigate the Web environment and their perception of how the Web responds to their inputs Novak et al., 2000. “Control” is considered as necessary as an external condition for a customer’s Internet shopping. “Control”, in this context, is similar to a kind of external equipment such as a computer used when the customer is connected to the Internet. While engaged in an online pursuit, the skills and familiarity of consumers must be above a critical threshold Novak et al., 2000. In this paper, e-commerce knowledge is defined as knowledge about product searching through the Internet shopping mall, the purchasing method, the payment process and the mall’s personal information protection policy, etc.

2.3 Perceived Reputation

A customer may have perception of an Internet shopping mall’s reputation Jong Lee, 2000. The perceived reputation of an Internet shopping mall provides assurances about the seller’s ability, integrity, and goodwill Jarvenpaa Tractinsky, 1999. It is the extent to which buyers believe that the selling organization is honest and concerned about its customers Doney Cannon, 1997. It also can be referred to as a customer’s recognition of the seller based on indirectly collected information from friends, relatives, colleagues, etc. Lee Lee, 2003. Doney Cannon 1997 suggest that the costs to an Internet shopping mall acting in an untrustworthy manner are quite high for an e-vendor with a good reputation. In the China C2C market, high-reputation Internet shopping malls have occupied almost all of the entire market. Taobao.com has already taken 67.3 of the online auction market share in China www.chinatechnews.com. Hence, it is considered necessary to study more deeply the relationship between perceived reputation and costumer trust.

2.4 Perceived Risk

Perceived risk was first introduced in the field of consumer activity Yang Baeg, 2003. Nowadays, even though there are a number of transactions that include safety mechanisms being developed, consumers still feel uneasy risky in participating in transactions in virtual space Park, 2005. The past studies show two different views on the perceived risk: 1 the uncertainty on the result after online selection of a product or service, and 2 the expected loss that could result by the online selection. Perceived risk can be defined as consumer’s perceptions of the uncertainty and adverse R. Gest. Tecn. Sist. Inf. RGTSIJISTEM Journal of Information Systems and Technology Management, Brazil technology and basic knowledge necessa sa sa ry ry ry f f f or or or a a a c c tually using e-commerce. This kind of knowledge includes the know-ho ho

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2.4 Perceived Risk

Perceived risk was first introduced d d i in in the field of consumer activity Yang B 2003 N d h h h b f i h i l d The effects of internet shoppers’ trust on their purchasing intention in china 273 consequences of engaging in an activity Dowling Staelin, 1994. It is a kind of subjective risk completely different from the objective risk that can be expressed as a probability. In other words, only if a consumer perceives the problem by himselfherself subjectively will the problem be evident to the consumer, even though the problem has been a real problem in reality for a long time Yang Baeg, 2003. Several distinct types of perceived risk have been defined in the previous research. As Jarvenpaa Tractingsky 1999 point out, a probable difference in physical goods with respect to quality as perceived by a consumer is a main type of perceived risk. There are other types of perceived risk such as a consumer’s perceived wariness about possible leakage of credit card related information, a consumer’s perceived lack of feeling secure about protection of personal information Ratnasingham, 1998; Jeong et al., 2004, a consumer’s perceived wariness about the possibility of no-refund or no- return after ordering Jeong et al., 2004. In addition, some other studies like one by Kim Park 1999 classify perceived risk into a functional trust risk, a payment method risk, a contract related risk, and a delivery related. In their paper, Kim Park define perceived risk as a consumer’s perceptions of the uncertainty and adverse consequences of engaging in an activity. The comprehensive definition by Dowling Staelin 1994 includes the notions of a consumer’s perception of the probable difference of the quality of the physical goods, the possibility of no-refund and no-return on the order, danger from the payment method, lack of personal information protection, and the probable long delivery time.

2.5 Perceived Ease of Use PEOU