Antecedents to internet-based purchasing: A multinational study

Purpose - In the growing field of electronic commerce there are various influences that can lead to online purchase decisions. An understanding of these influences can lead to greater electronic marketing effectiveness. The purpose of this article is to analyze and compare the effect of internet experience, proclivity of use, and perception of risk on the likelihood of purchasing online in three different countries. Design/methodology/approach - The empirical study includes a survey-based design in which responses to a questionnaire completed by 492 multinational consumers are analyzed in structural equations modeling using LISREL. Findings - Results suggest a positive relationship between consumer usage and experience of the internet and the likelihood of making online purchases. There is further indication that the perceived risk of buying online has a negative effect on consumers' purchase likelihood. Moreover, perceived risk tends to partially mediate the relationships between internet usage and purchase likelihood, and between experience and purchase likelihood. Overall, results from a three-country study indicate that extent of ongoing internet usage, long-term experience, and perceived risk are important antecedents to purchasing goods via the internet. Originality/value - In the growing field of electronic commerce there are various influences that can lead to online purchase decisions. The results suggest marketers should modify their e-marketing strategies to address specific conditions in consumer behavior that arise at the cultural, socioeconomic, and other levels of individual countries. Differences in levels of experience in using the internet, proclivity to use the internet, and perceptions of risk regarding the internet, influence the likelihood to purchase goods online. Generally, managers should minimize the perception of risk that potential consumers feel online. Consumers in different countries process e-commerce constructs differently, perhaps because of different rates of technology diffusion.