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The effect of encryption on Internet purchase intent in multiple vendor and product risk settings

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Abstract

Despite rapid growth, e-commerce proponents argue that individuals are still reluctant to reveal confidential information such as credit card account numbers to unknown third parties. To reduce individual transmission and privacy risk concerns, several web sites employ encryption techniques while others include assurance seals.

We examine the impact of encryption on Internet purchase intent (PI) in multiple vendor and product risk settings. One hundred twenty-one MBA subjects completed our online experiment. Results indicate that the presence of encryption increases the likelihood that participants make an online purchase. Further, subjects assign similar PI to encryption and assurance seal scenarios. Vendor risk moderates product risk. When the vendor was unknown, increases in product risk (i.e. higher product price) result in decreases in PI. However, when the vendor was known, increases in product risk result in increases in PI.

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Authors and Affiliations

  1. University of Wisconsin, Oshkosh, USA

    Maureen Francis Mascha

  2. Wayne State University, Detroit, USA

    Cathleen L. Miller

  3. Iowa State University, Ames, USA

    Diane J. Janvrin

Authors
  1. Maureen Francis Mascha
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  2. Cathleen L. Miller
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  3. Diane J. Janvrin
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Correspondence to Diane J. Janvrin.

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Mascha, M.F., Miller, C.L. & Janvrin, D.J. The effect of encryption on Internet purchase intent in multiple vendor and product risk settings. Electron Commer Res 11, 401–419 (2011). https://doi.org/10.1007/s10660-011-9080-6

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  • DOI: https://doi.org/10.1007/s10660-011-9080-6

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