ON(THE)LINE!

ON(THE)LINE!: ONLINE SHOPPING RISK ASSESSMENT BASED ON FACEBOOK SHOPPING ENVIRONMENTS

ABSTRACT: Rooted in the integrated theories of Prominence-Interpretation and Corritore, et. al.’s Model of Online trust, this study seeks how the shopping environments on Facebook are evaluated by Filipino online shoppers in their formation of risk, taking into consideration the contexts behind them, and how these assessments affect their online shopping behaviors. To achieve this, a profiling of five (5) selected Facebook shops was conducted as well as 20 in-depth interviews of millennial online shoppers. The results have provided a model of risk that would explain the decision-making process of Filipino online shoppers in assessing Facebook shopping environments.

Upon visiting a Facebook shop, shoppers first notice the following prominent factors: (1) branding and aesthetics, (2) page likes, (3) product images, (4) content appropriateness, (5) seller identity, and (6) post-transaction sentiments available on the page. They are evaluated with the assistance of the shoppers’ (a) existing assumptions, (b) comparison with other shops, (c) ability to navigate Facebook shops, and (d) previous experiences.

Shoppers equate risks of Facebook shops with the concepts of understandability, consistency, dedication, professionalism, credibility, and transparency. Their risk assessment of a Facebook shop, then, determines their purchase intention, revisit intention, and willingness to participate in online and offline word-of-mouth.

KEYWORDS: Facebook, Risk Assessment, Online Shopping, Online Environments, Environmental Factors, Shopping Behavior, Purchase Intention, Revisit Intention, Word-of-Mouth

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