The Role of Perceived Benefits and Perceived Risks Towards the Consumers’ Purchase Intention Via ECommerce: An Evidence From Indonesia

Abstract

The advancement of buying and selling technology has changed consumer behavior in the world of
commerce. The modern purchasing process has made the consumers’ purchases became more efficient, hasslefree
and easy. However, technology in online purchases is inseparable from the risks that might occur behind the
transaction, but it develops more benefits to online consumers. The risks and benefits at the same time might look
contradict but marketing experts believed that these two could potentially increase consumers’ intention to
purchase any online products. The purpose of this study is to look at the effect of perceptions of consumer benefits
consisting of price discounts, comfort, convenience, and enjoyment as well as consumer risk percentages
consisting of financial risk, product risk and time risk towards online purchase intentions. This study is
quantitative 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 relationship
between the identified variables. The results showed that price discounts, comfort, and enjoyment had a positive
influence on online purchase intentions. Surprisingly, convenience and financial risk did not affect online
purchase intentions while product risk and price risk had a negative influence on online purchase intentions. This
research is important as an input for online sellers to increase sales turnover by offering and convincing
consumers’ perceptions particularly on the benefits obtained by consumers from the purchase and minimize the
perception of risk that may hinder them from making a purchase. Furthermore, this research will be able to enrich
the existing works of literature on online purchase intention