Risk-Reduction Strategies for Internet Shopping of Search Goods and Experience Goods

In Business-to-Consumer electronic commerce, enterprises have to contact with the consumers directly. Understanding the consumers is one of the most important things to enterprises. The characteristic of internet shopping is the purchase risk on internet is larger than that in physical stores. According to the risk degree consumers have perceived, products can be divided into three patterns: search goods, experience goods and credence goods. However, while doing internet shopping, it is not easy for consumers to evaluate credence goods; the study, therefore, tries to investigate the risk-reduction strategies used by consumers in purchasing search goods and experience goods. This paper examines in-depth the risk-reduction strategies of consumers when they select and purchase search goods and experience goods and compares its finding with literature regarding risk-reduction strategies. It is hoped that this finding serves as a reference for the companies that sell search goods and experience goods in their formulation of marketing strategies.