Purchasing behavior for B2C E-commerce

On-line purchase decision affected by

perceived customer care
perceived customer value
perceived operational security
Organizational profile
Perceived privacy
perceived site security, and
perceived trustworthiness

Purchasing behavior for B2C E-commerce

Purchase Decision
Perceived Customer Care (CC)

Perceived Customer Value (CV)

Purchase Decision (PD)

Perceived Operational Security (OS)

Perceived Site Security (SS)

Perceived Privacy (P)

Organization Profile (OP)

Perceived Trustworthiness (T)

Purchasing behavior for B2C E-commerce

Customer Care:

It expresses customers perceived feelings

of how website will take care of his physical
transaction from pre-purchase to postpurchase and emotional belief and
involvement.

Customer care as trustful and reliable

offering, information handling, delivery,
compensation, return policy, problem
solving, and customer service policy.

Purchasing behavior for B2C E-commerce

Customer Value
It is focused on product quality expectation and price trade off from a
customers perception.
Four dimensions of consumers perceived value
Emotional Value: It comes from feelings or affective states that product
creates.
Social Value: It is an enhancement of social self-concept developed from
utility and from products ability.
Functional Value (price/value for money): It is explained as price/value for
money derived from product due to reduction of its perceived short-term
and long-term costs.
Functional Value (performance/quality): It is defined as performance of
quality derived from perceived quality and expected performance of
product.

Purchasing behavior for B2C E-commerce

Privacy
Includes control on exposed information and site
policy.
Extent to which customers be assured their
personal information provided during interaction in
website will not be disclosed or shared with others.
Forrester Research revealed that two thirds of
potential customers are worried about protecting
personal information on-line

Purchasing behavior for B2C E-commerce

Site Security
Degree to which consumers perceive it safe
to disclose personal and financial information
during interaction with websites.
Potential indicator for purchase decisions as
authentication of web information source,
protection of disposed information, and
perfection and guarantee of web statements.

Purchasing behavior for B2C E-commerce

Operational Security
Degree to which consumers perceive it safe
to disclose personal and financial information
during transactions with websites.
It is transactional security, authentication and
non-repudiation of operation, and functional
risk.

Purchasing behavior for B2C E-commerce

Trustworthiness
Virtual or psychological phenomenon,
comprised of how customer perceives
trustworthiness on EC operations.
Trustworthiness is perception of confidence
in webs reliability, credibility, and integrity

Purchasing behavior for B2C E-commerce

Organizational profile
Looks after EC organizations background
profile.
Background of company, owner of web,
origin of company, and company
performance and goodwill.
Very important for EC because of absence of
intrinsic product cues on website with which
customers can evaluate product quality.

Effect of Reputation for B2C E-commerce

Importance of Reputation for B2C EC
As competition for online customers grows, companies
cannot simply expect that if they build websites, customers
will spontaneously come.
Customers have become more sophisticated in their
knowledge of online purchasing alternatives. Customers are
also very much concerned with security and trust in web.
Web-based environment places unique set of constraints on
purchase phenomenon that does not exist in traditional
business. In traditional business, since there are so many
physical cues, sellers reputation is sometimes ignored

Effect of Reputation for B2C E-commerce

Importance of Reputation for B2C EC continued

However, environment of EC is quite different. In

EC, entire transaction is conducted through
computer.
Customers are interested in purchasing in good
faith. So, companys reputation is potential factor.
Consumers now have diversified attitudes, versatile
bargaining power, extensive alternatives in available
choices, and lower switching costs.

Effect of Reputation for B2C E-commerce

Importance of Reputation for B2C EC continued

EC, customers are highly dependent on the

credibility of the sellers.
Reputation is general opinion or, more
technically, social evaluation of public towards
person, group of people, or organization.

Effect of Reputation for B2C E-commerce

Self-reputation/Familiarity
Organizational reputation or familiarity is
understanding of vendors image and operational
credibility often based on previous interactions,
experiences, and learning.
Since EC is virtual, no physical contact, if consumers
have information about credibility of e-retailers, like
organizational reputation, they feel secure to interact
on website, which leads to purchase decision.
Familiarity with names of e-retailers as reputable
businesses gives consumers pre-purchase
satisfaction.

Effect of Reputation for B2C E-commerce

Rented reputation/Third party authentication
Enhancement of online vendors reputation by
association with and trust transference from wellknown third party.
This way, absence of established reputation can be
balanced by reputation of established third party to
build its own reputation which leads to formation of
customer trust, influences purchase decision, and
affects the perception of purchase satisfaction in
that website.
Like certification from reputed third parties, ISO9001 certificate.

Effect of Reputation for B2C E-commerce

Country reputation/Indirect reputation
Country of origin is country where company is registered
during formation, or where corporate headquarters of
company marketing product or brand is located.
Countries, which are perceived as reputed in terms of
quality, trustworthiness and reliable, enhance reputation of
companies that originate from those countries.
Country reputation influences customers perception of
trustworthiness, purchase decision and purchase
satisfaction.
Consumers of developing countries have an especially great
affection towards products of developed countries.