Factors affecting social commerce acceptance: Perceived risks and social networking sites (SNS) use

Abstract

As social media penetrates more deeply into people’s everyday lives, social commerce (a type of commerce that combines SNS features and possibility for commercial transactions) has enjoyed unprecedented growth. Shopping on Facebook is a representative example of social commerce platform that allows consumers to interact with other users, exchange information and purchase products without leaving a Facebook page. Social commerce presents great opportunities for marketers in terms of leveraging social aspects of shopping experience. It also offers a large potential for Korean companies to reach various target markets, as well as establish their presence abroad. Yet, acceptance of social commerce as a legitimate shopping channel has been slow, and consumers are still hesitant to shop via Facebook. This study draws on uses and gratification theory and the concept of perceived risk to examine how different motives for SNS use and the associated types of perceived risks can affect the purchase intention on the platform. Empirical data from 288 young users of Facebook were analyzed. Findings identified two main motives for SNS use: information-related motive and communication-related motive. Information-related motive significantly affected the intention to shop on Facebook, whereas communication-related motive did not have any significant influence. Risks associated with shopping via Facebook included delivery risk, security risk, social risk and economic risk. Overall, consumers perceived a higher level of security and social risk associated with shopping on Facebook. However, only social risk had a significant negative influence on the purchase intention. Awareness and previous experience of buying via social commerce platform positively affected consumers’ purchase intention.