Innovative products on the internet: the role of trust and perceived risk

Abstract

The emergence of e-commerce has brought a new opportunity for selling new products on the internet. However, little research has been conducted to analyse the implications of product innovativeness on purchase intention and other related variables such as perceived risk and website trust. The intrinsic characteristics of new products and the open nature of the internet as a transaction infrastructure can enhance the positive or negative relationships between these variables. The aim of our investigation is to assist organisations in their innovative initiatives through a survey among 1396 internet customers. According to our results, firms selling innovative products on the internet should take into account not only the positive implications on purchase intention or website trust, but also the negative consequences that can arise from the increase in customer-perceived risk. This study has proven important recommendations from academic and managerial points of view.