3rd International Conference on Management, Education, Information and Control (MEICI 2015)

Online Trading Risk Impact on Consumer Behavior Research

Tu Min
jiangxi university of technology-engineer training center

Keywords: Online transaction; Consumer; Risk analysis; Research of countermeasures

Abstract. With the development of modern economy, online transaction occupies an increasing
proportion in all transactions. However, Chinas e-commerce started relatively late, so its
development is not perfect. Therefore, risks in the process of online transaction influence
consumers. In China, with the development and popularization of computer and network
technologies and the rapid rise of e-commerce, many information technology companies, venture
capital firms and production circulation enterprises begin to carry out e-commerce. This paper
explores and analyzes the current situation of Chinas online transaction from the aspects of
online trading environment, its prospect and existing problems as well as the influence of its risks
on the consumer group.

Purpose and Significance of Research about Online Transaction Risks Influence on

Consumer Behavior
According to the current situation of each countrys online transactions, the risk of online
transaction is a universal problem in each country. For China, where e-commerce started
relatively later, this problem seems to have a more profound influence on the public s trust in
online transaction. Chinese consumers accustomed to the traditional face-to-face transactions.
When facing the new online transaction, their habits of avoiding unknown things hold up the
development of initial e-commerce and online consumption. However, Chinese people gradually
realize the benefits brought by online consumption and accept this new consumption pattern.
Since then, its drawbacks and risks also gradually appear.
In the context of increasing risks, it is more worthwhile to research the risks of online
transactions. In order to avoid the online consumption risks as much as possible, it is of great
practical significance to research the online transaction risks and their impact on consumers. The
online transaction risks are as follow:
1) It can further promote the development of online consumption
2) It plays a great role in avoiding risks of online transactions
3) It can effectively anticipate consumers consumption behaviors

Causes of Online Transaction Risks

The developing prospect of e-commerce is appealled to all people as well as its security issue.
Generally, e-commerce can be divided into two parts: computer network security and business
transaction security. That is to say, both the Internet and the business process will generate
security risks.
Security risks of the Internet refer to the security threats hiding in the Internet, such as network
tampering, attacks of denying services, Trojans and phishing. Since e-commerce develops based

2015. The authors - Published by Atlantis Press 1195

on the Internet, so it naturally inherits these shortcomings. To people engaged in online
transactions, the problem of Internet, insecurity means the trading field is surrounded by ambush
and online transactions are lack of basic protection and with high risks. These are also the major
reasons large enterprises are reluctant to accept e-commerce. In order to achieve complete security
of the network, it is necessary to have a safe Client, a safe server, a safe operation system, a safe
database, a safe middleware and a safe network.
The security risks in e-commerce refer to the security issues when the application of traditional
business on the Internet while the network is safe. For example, there are frauds in the process of
traditional business, and these frauds exist in a unique form on the Internet. Currently, buyers can
only judge the credibility of a seller from the data such as human-made ratings and pictures
uploaded by the seller. In order to guarantee the security of business process, it is necessary to
guarantee confidential, integral and identifiable e-commerce as well as its non-repudiation. This
makes trust the decisive factor in the success of online transactions.

Influence of Online Transaction Risks on consumers

Online transactions have many influence on consumers, and this paper only lists its three
aspects to consumer behavior under the e-commerce environment. Compared to the traditional
business patterns, consumers under the e-commerce environment are still restricted by traditional
shopping concepts. But online shopping with the advantages of convenience and saving time,
consumers gradually accept this brand new business pattern. While enjoying online shopping,
consumers consumption mentality is changing and demonstrating new characteristics, such as
segmentation of the consumption market, emphasizing on personal consumption, advocating
diversified consumption, proposing higher requirements for the convenience of shopping and
being highly sensitive to prices.
Impact on Information Search Behaviors. The access information helps consumers to make
a favorable choice, and the consumers acknowledgement of risks will change with the access
information, so as to improve the economic efficiency. In addition, the process of consumers
purchase is also the process of information processing. The more information the consumers get,
the lower probability of risks they are taking. Thus we can know that the influence to consumers
purchase behavior is in inversely proportion to the information searching. Therefore, if consumers
are engaged in e-commerce exchanges with great risks, they should conduct comprehensive
research of the seller and timely get the accurate information so as to reduce the possible risks.
Impact on consumers Behavior of Choosing Brands. Lets analyze the consumers behavior
of choosing brands. Many retailers recommend their relatives to buy products or take advantage
of online communities to gain favorable evaluation, so as to improve the credit rating of their
online shops. Therefore, many enterprises will make brand plannings when develop new products,
because brand plays a vital role in shopping choice and reduces the information searching cost of
consumers.
Impact on consume rs Purchase Decisions. So as to the consumers purchase decision, it
includes influence of pre-purchase behaviors, purchase behaviors and after-purchase behaviors. In
pre-purchase phase, many consumers will try to collect relevant information about the commodity
on the Internet as much as possible to get to know its property. However, with the virtuallity of
the network, consumers still concern about the reliability of the commodity; in the purchase phase,
when consumers has choosen a certain commodity, they begin to worry their losses of money, the

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quality of the commodity and whether the commodity will be delivered, etc.; and in the
after-purchase phase, when consumers finally get their commodities, and the impact of risks on
consumers purchase decision ends here.

Online Marketing based on Consumers Mentality.

With the popularization and rapid development of the Internet and the constantly increasing
amount of Internet users in China, corresponding changes also take place in the Internet users
characteristics and structure. It is the primary task for enterprises in online marketing as how to
recognize their potential consumers from the large group of Internet users and analyze
characteristics of their mentality and behaviors.
Analysis of Factors Restricting consume rs Online Shopping Mentality. Lack of Trust in
Online Shopping:
A distinct characteristic when enterprises application on the Internet is that all enterprises are
demonstrated by a websites and a visual environment, which increases the difficulties and risks
for consumers to identify and choose enterprises or products, making consumers unable to
effectively judge the quality of anticipated products and services in the real world. In addition, it
is easy to set online shops, thus it is easy to cheat. The recent CNNIC investigation reports also
show a trend of decline of the Internet users trust in the Internet, from 50.7% in 2005 to todays
35.1%. In addition, the higher the the Internet users education background is, the less trust he has
in the Internet.
Security of Online Transactions cannot be guaranteed:
The Internet is an open and free system. If consumers are conducting an electronic payment or
making bank settlement when the network is being attacked by hackers, consumers personal
information and credit card password may be stolen, which would cause great losses. In a 2006
CNNIC survey of investigating reasons the Internet users not conducting online transactions, the
first reason is the concern of transaction security, accounting for 61.5% of the total respondents.
A majority of 70.1% Internet users responded that they were attacked by hackers or virus in recent
half a year.
Product Quality and After-Sale Service cannot be guaranteed:
In traditional marketing, if there is a quality issue in products, consumers can ask the seller for
return, exchange or warranty. However, most online transactions are remote sales. When such
problems appear, return and warranty become difficult. Previous surveys of CNNIC show that
more and more consumers are concerned about this problem, from 28.3% in July 2000 to 45.7%
in July 2006.
Online Consumption cannot Satisfy consumers Some Specific Mentality:
Although online shopping can partly replace interpersonal relationship, it cannot satisfy
consumers needs for personal social motivation. For example, housewives or friends hope to
maintain the relationship and friendship through shopping together. In addition, visual shops
cannot make consumers receive attention and respect due to shopping or show their social status,
achievement or affordability in the process of shopping.
(1) Marketing Strategies Aiming at Restricting Factors of Online
Cons umption.Strengthen the construction of websites and improve credit rating of products and
online shops.

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 Characteristic operation. If a website without characteristics will soon be immersed in the
sea of websites. So if a web needs to take its root in the mind of users, it must attract users with
characteristics.
Renewal and development of information contents. Renewal of Web contents includes
updating information and adjusting the column as information has strong timeliness, so the
demands must be renewed constantly so as to make consumers get timely information about the
online shop and its products.
Reliable information and guarantee of products quality. Simplify Payment Procedure and
Strengthen Shopping and Payment Security.
Simplified payment procedure can reduce the discontent of consumers due to cumbersome
payment procedures. After a series of online shopping links, consumers can easily be fed up with
the complicated operation. If the transaction procedure is also troublesome, it is likely that
consumers may give up the purchasing. It will help to solve online transactions technical problem
of security to strengthen the construction of safe online payment and establish a research team.
Perfect Logistic Distribution:
Logistic distribution is a link that consumers directly contact, and the high-quality logistic
distribution can increase consumers satisfaction. In comparison, under the condition of the same
distance and product quality, if A is distributed faster than B with better service, it is likely for
consumers to choose commodity of shop A at the second consumption. Perfect logistic
distribution can create a good reputation and publicize the commodity without any costs.

Conclusion
For sellers, do researches on the influence of online consumption risks on consumer behavior
can urge them to better establish their own e-commerce system more rapidly, strengthen the
construction of their own websites and guarantee the quality of their commodity so as to create a
good reputation among consumers. Simplified payment procedure and operation will attract more
consumers. The problem of logistic distribution needs to be taken seriously because this is a link
directly contacting consumers and rapid and flawless distribution can leave a good impression on
consumers, contribute to consumers second purchase or introducing the commodity to others so
as to achieve an intangible promotion effect. To perfect the after-sales services so as not to make
consumers worry. On the basis of completing all these, keep close contact with consumers and
timely master their conditions and demands for the ever-lasting development of the enterprise.

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