The Effect of Service Guarantees on Online Customers â•Ž Purchase Intention

With the rapid development of the Internet and e-commerce, the Internet has become an important channel for consumers to purchase goods. Because online shopping has characteristics of virtual and remote presence, consumers take greater psychological risks while they purchase online and they will make more cautious purchasing decisions. So they build their confidence and reduce the perceived risks only through searching more service information and choosing those online stores with service guarantees. Based on domestic and international reviews of service guarantee, price and purchase intention, this paper researched the effect of service guarantee strength and process of invoking service guarantee on online consumers’ purchase intention as well as the moderating effect of price on these relationships combing with the actual situation of China’s online shopping market. The results show that service guarantee strength has a significant positive effect on online consumers’ purchase intention. Process of invoking service guarantee has a significant negative effect on online consumers’ purchase intention. Price significantly moderates the effect of process of invoking service guarantees on online consumers’ purchase intention. Results of this study provide some theoretical guidance for businesses to implement effective