Does freight insurance really work? Effect of freight insurance on consumers' attitude in online shopping
by Tong Chen; Ke Ma; Chundong Zheng
International Journal of Internet Marketing and Advertising (IJIMA), Vol. 12, No. 3, 2018

Abstract: This research examines the effects of free freight insurance on consumers' product purchase intention and product return intention. Through an empirical study (study 1), the results show that free freight insurance will have a positive impact on consumers' product purchase intention, but it is also demonstrated that free freight insurance may lead to higher product return intention. Specifically, consumers react more perceived benefits and less perceived risks toward free freight insurance during online shopping. Furthermore, product category and product price have an interaction moderation effect on the effect of free freight insurance on consumers' purchase intention. For experience product with higher price, free freight insurance was demonstrated that it does not functions well, and the results in study 2 (an actual experiment) also verify on this point. The results of this study have important and meaningful implications for online retailers.

Online publication date: Wed, 25-Jul-2018

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