Online Payment and Consumers’ Attitude towards Risk reduction strategies in a Cash Based Economy
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Date
2018-12-25
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Archives of Business Research
Abstract
Online payment for goods has grown globally; unfortunately, the advancement in
technology has not lowered the level of perceived risk felt by customers who pay for
products online. The adoption of online payment in Nigeria is still low hence,
consumers are given options considered less risky to use. Many online vendors have
adopted different risk reducing strategies to help curb the perceive risk felt by
customers when paying online. The effect of these risk reducing factors have not been
adequately investigated in Nigeria especially, given that online vendors in Nigeria
accommodate buying online and paying cash. Using a sample of 170 young people in
Nigeria, an ordered logistic regression was used to test the relationship between
various risk-reducing strategies such as Money Back Guarantee (MBG), Electronic Word
of Mouth (EWOM), Informational Influence (IIF) and Pay on Delivery (POD) in Nigeria
and customers’ attitude towards electronic payment (CAT). We found that MBG, EWM
and POD have significant positive influence on (CAT) while IIf exhibited a significant
negative influence. The various risk reduction strategies employed by the study
contributes a significant 12% to the variation of customers’ attitude towards electronic
payment. We concluded that risk reduction strategies have a significant positive impact
on customers’ attitude towards electronic payment in Nigeria. Hence, we recommend
that online vendors should encourage more interpersonal online interaction among
users, they should also provide more money back guarantees and pay-on-delivery
offers to consumers to simulate and hasten their movement from traditional payment
methods to online payment methods.
Description
Keywords
Online Shopping, Informational Influence,, Money Back Guarantee, Electronic Word of Mouth, Pay on Delivery,, Customers’ attitude towards electronic payment
Citation
Iriobe, O. C. (2018). Online Payment and Consumers’ Attitude towards Risk reduction strategies in a cash based economy. Archives of Business Research, 6(12), 204-220.