THE ROLE OF PERCEIVED BENEFITS AND PERCEIVED RISKS TOWARDS THE CONSUMERS' PURCHASE INTENTION VIA E- COMMERCE: EVIDENCE FROM INDONESIA

Abstract

The advancement of buying and selling technology has changed consumer behavior in the world ofcommerce. The modern purchasing process has made the consumers’ purchases became more efficient, hasslefreeand easy. However, technology in online purchases is inseparable from the risks that might occur behind thetransaction, but it develops more benefits to online consumers. The risks and benefits at the same time might lookcontradict but marketing experts believed that these two could potentially increase consumers’ intention topurchase any online products. The purpose of this study is to look at the effect of perceptions of consumer benefitsconsisting of price discounts, comfort, convenience, and enjoyment as well as consumer risk percentagesconsisting of financial risk, product risk and time risk towards online purchase intentions. This study isquantitative in nature and involves 286 respondents who were accidentally recruited to be part of the investigation.Data collected were analyzed using SPSS and multiple regression analysis was conducted to see the relationshipbetween the identified variables. The results showed that price discounts, comfort, and enjoyment had a positiveinfluence on online purchase intentions. Surprisingly, convenience and financial risk did not affect onlinepurchase intentions while product risk and price risk had a negative influence on online purchase intentions. Thisresearch is important as an input for online sellers to increase sales turnover by offering and convincingconsumers’ perceptions particularly on the benefits obtained by consumers from the purchase and minimize theperception of risk that may hinder them from making a purchase. Furthermore, this research will be able to enrichthe existing works of literature on online purchase intention

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