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Keywords
Risk, Perception, Consumer behaviour, Internet, Business development, Marketing
Abstract
Previous research suggests that perceived risk is an important ingredient in the consumer decision-making process. The purpose of the present study is to investigate what are the perceived barriers to Internet usage and e-marketing by both users and non-users. By understanding these potential obstacles, more efficient marketing strategies will become available that will drive Internet use and e-commerce. A detailed perceived risks map has been developed using a qualitative research paradigm. We suggest a model with the factors affecting the Internet's perceived risk elements. The factors are demographic traits and usage behavior characteristics. The model is tested against a sample of 465 employed adults.
Introduction
Internet usage is growing rapidly all over the globe. As reported by Nua, Internet users over the world amounted to 513 million in August 2001, 8.5 per cent of the world's population (nua.com). Global usage growth rate for the previous 12 months is estimated at 40 per cent. In the USA and Canada 166 million were online in August 2001, 60 per cent of the population (NielsenNetRatings, 2001 a). In Israel, 39 per cent of the population above 16 has home Internet access, 18 per cent have work access, and 15 per cent have access at other places (NielsenNetRatings, 2001b). The recent slowdown in Internet business does not necessarily have an immediate effect on usage trends and rates.
Although these figures seem quite impressive, especially in view of the short and bumpy history of the Internet, they by no means indicate usage peaks or saturation. On the contrary, sellers of Internet time have much left to do. Marketing efforts intended to enhance Internet use are expected to follow a twofold strategy: turn non-users into new users and expand usage of current users.
Theoretically, both strategic avenues seem plausible. Nonetheless, the job is not an easy one to perform. As is the case with more traditional products, no success prescription can be guaranteed. Consumers make their own decisions as to how much to consume and/or use of an abundant array of products and services. Decisions of this type are made for each good by weighing various utilities derivable from using an item against what it takes from...