Online risk control mechanisms, perceived risk, trust and consumers' behavioral intention for price errors

Unlike the physical sellers' ability to catch a pricing error quickly, thousands of orders can be placed with online sellers before they detect the problem. Disputes over contractual validity between the consumers and sellers may cause consumer dissatisfaction, as well as reputational damage and significant financial losses to sellers that are detrimental to the development of e-commerce. Based on the attitude theory proposed by Engel, Blackwell, and Miniard (1995), we conducted an online survey with consumers that have e-commerce experiences using the survey method. The statistical and empirical analysis results show that when online pricing errors occur, consumers' perceived risks affect their trust toward Web sites and sellers, and this subsequently affects consumers' purchase intentions. Additionally, when pricing errors occur, risk management mechanisms can be implemented to enhance consumers' trust toward Web sites and sellers. However, these risk management mechanisms cannot effectively reduce the effects of perceived risks on consumer trust.