Mobile commerce and device specific perceived risk

Abstract

This study examines the role of perceived risk and access device type on consumers’ on-line purchase decisions. We use a two-step hurdle approach to estimate consumer behavior. In the first step, the decision of whether to engage in eCommerce is estimated and in the second step, how many orders to place is estimated. We use a large multi-year survey sample of households from Canada’s national statistical agency—Statistics Canada. The sample size is such that we are able to conduct sub-sample analysis of PC-only users, mobile-only users, and other-users. We show that online security and price significantly influence mobile eCommerce. We also show that there is a statistically significant difference in the intensity of eCommerce engagement across device type and consumer risk type (high/low). One of our main findings is that perceived risk affects purchase decisions for mobile users more than PC users, however additional comparisons are carried out with our analysis.