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CONVERSION OF ONLINE PURCHASE INTENTION INTO ACTUAL PURCHASE: THE MODERATING ROLE OF TRANSACTION SECURITY AND CONVENIENCE

Verslas: teorija ir praktika, 2020-03, Vol.21 (1), p.18-29

COPYRIGHT 2020 Vilnius Gediminas Technical University ;2020. This work is published under https://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 1648-0627 ;EISSN: 1822-4202 ;DOI: 10.3846/btp.2020.11346

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  • Title:
    CONVERSION OF ONLINE PURCHASE INTENTION INTO ACTUAL PURCHASE: THE MODERATING ROLE OF TRANSACTION SECURITY AND CONVENIENCE
  • Author: Indiani, Ni Luh Putu ; Fahik, Gabriel Aprinau
  • Subjects: actual purchase ; Analysis ; Behaviorism ; Business Economy / Management ; Consumer research ; ICT Information and Communications Technologies ; Marketing / Advertising ; online purchase behaviour ; online purchase intention ; online retail industry ; Retail trade ; Safety and security measures ; transaction convenience ; transaction security
  • Is Part Of: Verslas: teorija ir praktika, 2020-03, Vol.21 (1), p.18-29
  • Description: Online retail trade in Indonesia has grown dramatically in recent years. However, it is not being followed by an increase in the transaction completion ratio, with a cart abandonment rate of up to 70 percent. This indicates that the transition from online purchase intention to actual purchase is not as simple as postulated in the theory of planned behaviour (TPB); yet, there are other factors moderating the conversion. Therefore, this study aims to develop a model analysing the moderating role of perceived transaction security and convenience in the relationship between online purchase intention and actual purchase. Model development was also motivated by critics regarding TPB’s robustness in explaining consumer purchase behaviour; therefore, this model is expected to enrich TPB by providing a more comprehensive picture in online purchase behaviour. The sample consisted of consumers who had shopped for retail products online. The proposed relationship was tested with partial least square method. Results showed that perceived transaction convenience has a positive and significant moderating effect, whereas perceived transaction security showed an insignificant moderating impact. This finding is noteworthy amid risky online purchase environment. Respondents’ characteristics and alternative payment methods might explain the insignificant moderation. As a practical implication, it is recommended that online retailers improve online transaction convenience to increase the conversion rate.
  • Publisher: Vilnius: Vilnius Gediminas Technical University
  • Language: English;German;Lithuanian
  • Identifier: ISSN: 1648-0627
    EISSN: 1822-4202
    DOI: 10.3846/btp.2020.11346
  • Source: CEEOL: Open Access
    ProQuest Central
    DOAJ Directory of Open Access Journals
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