The role of redress in consumer online purchasing

This thesis reports a study which examines the influences of the availability of redress procedures on the decisions of consumers to purchase online. Availability of redress procedures in this concept is when consumers have access to uncomplicated complaint procedures that offer timely resolution and effective compensation and handling. Previous research has shown that many factors such as product price, availability, merchant reputation and integrity, consumer attitude, perceived convenience, enjoyment and pleasure, and service quality influence the decisions of consumers to purchase on line. This study focuses on the availability of redress procedures on the decisions of consumers to purchase online and the importance role of redress in that process. Data was collected initially in face-to-face interviews with both consumers, who buy online, and merchants who sell online. Then Focus Group discussions with consumers were conducted to further understand and confirmed the findings emerged from the interview process. The research shows that price was always the first and most significant influence in consumers’ decisions to purchase online. Likewise, consumers also make decisions about online purchasing because of product availability and the range of product choices available to them. Consumers are also sensitive to shipping fees when deciding to purchase online. It also shows that any delay or longer delivery time also influences consumers’ decisions in switching back to offline purchasing. Lastly, consumers choose to purchase online because they enjoy the fun and excitement during the process of online purchasing. A model showing the influence of these factors was created, adding the effects of the availability of redress on those decisions. <br><br>This research shows that the availability of redress does not always influence consumers in making decisions to purchase online. If most transactions are fulfilled according to the consumer’s expectations, then consumers have little, if any, concern with redress. Sometimes factors such as merchant reputation, low risk transactions, guaranteed purchase fulfilment, product price and availability, enjoyable online purchasing experience, shipping cost and delivery time seem to be a more important influence on consumers in their decisions to purchase online. This research concludes that the availability of redress can and does indirectly influence consumer confidence and trust ix in online purchasing and therefore impacts on their decision to purchase, if and only if, one of these three circumstances happens: <br><br>1. When problems occur in online purchasing process and subsequently consumers require an immediate access to a complaint handling system; <br><br>2. When risk is perceived to be present in the purchasing process then the availability of redress policy and/or procedures is required by consumers to guarantee that they are well protected from financial loss; and <br><br>3. When redress initiatives are offered that allow consumers to assess the merchant’s accountability in offering satisfactory online purchasing fulfilment.