The Effects of Risk Preferences on Consumer Purchasing Counterfeit Goods Online

Abstract

Nowadays ways of purchase are changing with the maturity and rapid development of e-commerce. There are two studies in this research paper. In study 1, one online experiment was conducted with 263 subjects, it aims to figure out the relationship between consumers' risk preference and risk in online purchase environment. In study 2, the other online experiment was conducted involving 263 subjects. It aims to explore consumer purchase intention in counterfeit goods by experimental design including those three variables. It is found risk preferences on consumers and risks in purchase environment must be considered in the same time, because the interaction between risk preference of consumers and risks in online purchase environment for impact on purchase intention will be significant. The product itself like product with logo or not is the biggest factor to attract consumers to purchase. Risk will not affect consumer purchase intention while there are no other variables; but it would affect consumers purchase intention while consumers consider brand logo at same time.