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Perceived Purchase Risk
Perceived purchase risk is present when people fear and are concerned about wasting or losing money when purchasing or using products or services online. This risk includes making transaction mistakes, not receiving goods, and processing errors. Many older adults are concerned about using online banking and making errors which could result in them losing money. Others are worried about not understanding products, services or payment methods when attempting to purchase items.
For Rosa, these perceptions of risk manifest in the following ways:
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Example 1
“I worry my transactions and payments will be processed incorrectly.”
Example 1
Purchase risks may manifest as a fear of the transaction or payment not being processed correctly. For instance, Rosa is planning a trip back to her home country. She has found some cheap airfares online, but she is unsure if she can trust sending funds as she doesn’t know the company.
Example 2
“I worry the goods I purchased online will not show up.”
Example 2
This is manifested as a fear of not receiving the goods ordered in an online store. For example, Rosa bought a shirt for her husband from an overseas online store she didn’t know. Weeks later, nothing has shown up, and she is concerned about having used her credit card in this store.
Individual Strategies for Managing Purchase Risk
01
Do your research. Scrutinise online reviews when considering purchasing something. For example, If the review is filled with nothing but glowing praise or complete hatred, it may be worth a closer look. Pay attention to facts more than opinions. This includes using tools that compare prices and reviews. Remember to include the total price (delivery, GST, import taxes and other fees).
02
Be wary. When considering purchasing something online, be careful and critical, scrutinise the sites’ reputation and read customers’ reviews. Stop if you notice anything unusual, it might be hackers or scams. If it’s too good to be true, it’s probably not true. You can always find safer alternatives.
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Be wary. ACCC website has a great resource to help you navigate online reviews.
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Start with small purchases. You and your partner can learn online purchasing by making small purchases from online websites of reputable physical stores that you know. They will often be able to help you if anything goes wrong.
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Address details. Double-check if you have included the correct contact details - your name, email, and address.
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PayPal. Use PayPal for added security as you don’t share your financial details with the provider. PayPal also reimburses you when your goods are not delivered. Alternatively, arrange a low limit credit card dedicated to purchasing online products.
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Prepaid cards. Another safe option for online purchases is prepaid cards from supermarkets.
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Banks and financial institutions.
• Go onto your financial institutions’ website and explore their tutorials on online banking. Alternatively, go into a branch and ask for assistance and take notes.
• Remember to check your accounts for unusual activities regularly.
• If you make a mistake or notice something unusual in your bank account – go to your financial institution immediately.
Relational Strategies for Managing Purchase Risk
01
Seek recommendations. Read reviews and seek advice from others who have more ICT knowledge than you or are more used to those stores and environments.
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Research. Actively google the store name and customer reviews. Then, do your due diligence to make sure the store, the product and the online channel are legit.
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Seek recommendations. Ask family members/friends who shop online to provide references for safe places to buy.
04
Get some help. When purchasing online for the first time, consider asking your family members/friend to guide you step by step. Remember to take notes so that you can repeat it later.
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Share your knowledge. Share your online shopping experiences with your family and friends. Share advice and learn from their experiences.
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Banking and financial institutions. If you make a mistake or notice something unusual in your bank account – go to your financial institution immediately.
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Courses. Join ICT (computer, tablet, smartphone) courses for beginners developed for older adults. Discuss what you need with your tutors. Share your purchase experiences with your friends.
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Communities. Consider creating a trusted database of trustworthy and efficient sites for delivering online goods with a group of friends.
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Strategies to Managing Perceived Purchase Risk
Perceived purchase risks are aligned both with the person’s ICT ability and the person’s confidence to overcome the perceived risk when engaging with the digital device. There are individual strategies people can do themselves to manage this risk, as well as relational strategies which consider the role of social influence on a person’s ability to try new things and interact with ICT.
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Other potential risks that Rosa is facing:
Rosa Strategy 4
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