Skewing users' rational risk considerations in social commerce: An empirical examination of the role of social identification

Social commerce has emerged as a new platform that enables users to conduct shopping assisted by inputs from other members and to publicly comment on transactions or products. It therefore adds a social aspect to traditional online commerce environments. Nevertheless, the role of the social facet embedded in such transactions in influencing user behaviors is not fully understood. In this study, we rely on theories of risk deterrence in decision-making and the "risky/choice shift" logic to suggest that the social identification of users regarding their community members skews the way they consider risks in decision-making on these sites. Using data from 175 users of etsy.com, we show that perceived commerce risk reduces intentions to buy from the website and that perceived participation risk curtails intentions to post comments on social commerce forums. The findings further show that the influence of these risk assessments is reduced when the degree of social identification with the website community increases; these risk considerations become negligible in decision-making processes when 'social identification is one standard deviation above the mean. Hence, users' social identification with the social commerce website community skews their rational decision-making.