Electronic (eCommerce) related risks are new to thetypical consumer, so, it was not yet known howconsumers judged the risks. Using the psychometricparadigm, respondents were asked to judge theriskiness of various risk objects in a pair-wisefashion using a similarity/dissimilarity scale,e.g., how dissimilar is Risk-object 1 to Risk-object2 on a scale of 1 to 7? The collected data wereanalyzed using a Multidimensional Scaling (MDS)technique to infer the set of dimensions acrosswhich respondents evaluate risks. The datacollection method and analysis aided in answeringtwo research questions: a) the dimensions consumersuse when they judge online risks, and, b) how riskperceptions differ across customers from twocountries. The study found that consumers employ afine-grained schema to distinguish and group risksin their minds, characterize risks with more thantwo dimensions, and that none of the dimensions canbe interpreted as pure probability or pure value.Analysis suggests that differences exist in how U.S.and Nigerian subjects view online risks.
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