Online Perceived Risk Of The Regulatory Role Of Brand Credibility And Price Sensitivity Study

With the advent of Internet epoch, it brings some new academic research projects in consumer behavior theory field. According to annual statistical data by CNNIC and 'China online shopping research report 2003' by Shanghai iResearch Co., Ltd, and felling back on studying lots of relevant literatures, this paper brings forward that brand credibility decreases price sensitivity of online shopping, and consumer perceived risk has moderating effect on the relationship between brand credibility and price sensitivity, which ground on traditional research result.Taking some mobile brands on line market as example, this paper employs positive study to discuss perceived risk' effect on the relationship between brand credibility and price sensitivity. The paper first defines what are brand credibility, price sensitivity and perceived risk. Then proposes a moderating effect model of perceived risk based on literature review, and the hypothesis. Following is scale development, research design and data collection. The research shows that perceived risk has a positive moderating effect on the relationship between brand credibility and price sensitivity, and the intensity of moderating effect varies according to different dimension of perceived risk.The paper belongs to basal research, moreover, has some guidance to practice. The theoretical significance is that introducing perceived risk as a moderating variable to the traditional relationship model of brand credibility and price sensitivity, and testing the impact of brand credibility on price sensitivity of online shopping, which extends research of the relationship between brand credibility and price sensitivity into online shopping. The practical significance of this paper is that price sensitivity results in low-price competition and profit diminish, however product brand credibility is an important factor to decrease consumer's price sensitivity. Research of the paper will help brand manager understand the relationship of brand credibility and price sensitivity on line shopping.