The Effects of Country-Of-Online Retailer on Consumer’s Purchase Decision-Making in a Foreign Internet Shopping Mall

Abstract

Purpose – The growth in consumers’ online shopping has even been accelerated by the COVID-19 pandemic. While the purchase can be made from any countries online, the purpose is to examine the effect of the country of the online retailer (COOR) on consumers perceived risk and purchase motivation, focusing on the retailer not on the brand. Design/methodology – Survey data from online shoppers are analized using the structural equation model. Findings – COOR, like COO of the brand manufacturer, positively affect consumer’s purchase intension. First, the images and the perceived psychic distances of the COOR affects both perceived risk and purchase confidence. Secondly, this perceived risk and confidence they put on the transaction then affect the purchase intension of the consumer. Originality/value – We show that the quality of the signal comes not only from the manufacturer-branded product item itself with a certain COO, but also from the retailer who carries it.