Investigating the determinants of consumer confidence and online impulse buying intentions: an experimental study

Abstract

PurposeThis study examines the effects of risk reduction, seller reputation, eWOM and warranties on consumer confidence and online impulse buying intentions through the lens of the stimulus-organism-response (SOR) model. It also explores the role of installment options in online impulse buying.Design/methodology/approachWe performed a between-subjects experiment (installment vs. no-installment option). Data were collected from 199 consumers and analyzed using SmartPLS 3.3.9.FindingsThe results show that risk reduction, eWOM and warranty positively affect consumer confidence (CC) in online shopping and that CC positively predicts online impulse buying intentions. It was also found that the effect of CC on online impulse buying intentions was stronger when consumers were offered an installment option than a no-installment option.Practical implicationsFindings suggest that online sellers should invest more resources in building consumer confidence, which affects online impulse buying intentions. Moreover, online sellers should offer installment options to consumers, thereby reaping stronger effects of consumer confidence on online impulse buying intentions.Originality/valueEmploying the experimental approach, this study makes a novel attempt to examine the role of the installment option in fostering online impulse buying intentions among Pakistani consumers. Likewise, this is one of the early studies to explore the effects of risk reduction, seller reputation, eWOM and warranties on CC among Pakistani consumers using the SOR model.