Abstract
Increasingly, retailers are combining Internet and store based operations to become “multi-channel” as they attempt to attract and retain customers. This study investigates how the type and level of perceived product risk (specifically economic and psychosocial risk) influence patronage preference for shopping from three types of e-tailers. The e-tailer formats studied are: pure play e-tailers (e.g., Overstock.com), value-oriented store based e-tailers (e.g., Wal-Mart.com), and prestigious store based e-tailers (e.g., Bloomingdales.com). The hypotheses, based upon prior research in the area of perceived product risk, show that type and level of risk do matter. Further, e-tailers linked with prestigious stores have an advantage over both other e-tailer types. Results also show an interaction between perceived product risk and the e-tail format. Based on samples from the Northeast and Southeast USA, the results are found to be similar in these diverse regions, improving the generalizability of the findings.
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