Research on Customer Perceived Risks in Internet Group Buying

The research and elimination of perceived risks by customers shopping online in groups furthers the development of the business model. With the review and summary of perceived risks by customers in traditional e-commerce environment, special risks resulted from online group buying ware discovered by interviews with customers and experts in order to develop initial scale of perceived risks by online group buying customers. Through data collection and factor analysis by SPSS, five perceived risk constructs are concluded: risk of choosing partners, core services risk of website, risk of information service, performance risk and financial risk. Finally, measures to eliminate perceived risks are suggested from both website and customers perspectives respectively.