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What is Vendor risk

Encyclopedia of E-Business Development and Management in the Global Economy
Degree to which individuals believe that if the purchase products or services through the Internet they will suffer losses caused by Internet vendors.
Published in Chapter:
Effect of Perceived Risk on E-Commerce Acceptance: State of the Art and Future Research Directions
Ángel Herrero-Crespo (Universidad de Cantabria, Spain) and Ignacio Rodríguez-del-Bosque (Universidad de Cantabria, Spain)
DOI: 10.4018/978-1-61520-611-7.ch068
The risk or uncertainty perceived on a conduct (e.g. purchasing or consuming of a product, or using an information system) by the individuals has been traditionally identified as one of the main determinants of consumer behavior. In particular, the influence of perceived risk has been specially linked to high involvement products or conducts (Laurent & Kapferer, 1985) which imply a high value or concern for the individual, and that are usually purchased after long and careful consideration. In the specific context of e-commerce, perceived risk has been traditionally identified as one of the main barriers for Internet shopping acceptance and diffusion (Korgaonkar & Wolin, 1999; Goldsmith & Lafferty, 2001; Miyazaki & Fernández, 2001; Wu & Wang, 2005). However, the empirical evidence available regarding this issue is contradictory, and some authors have found that the influence exerted by perceived risk on consumers’ online shopping behavior may not be so relevant (Jarvenpaa & Todd, 1997; Herrero & Rodríguez del Bosque, 2008).
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