The effect of review quality on purchase intention in cross-border e-commerce: The case of Hungary

Abstract

This study investigates the impact of review quality (a situational stimulus) on consumers' risk perception and purchase intention in cross-border e-commerce based on the Stimulus-Organism-Response (SOR) model. In doing so, quantitative research involving 400 Hungarian respondents was performed. The data were analysed using composite-based structural equation modelling (SEM). The study concludes that an experience created through highly qualified online reviews of previous consumers has a significant effect on mitigating consumers' risk perception while increasing their purchase intentions. The study also differentiates two aspects of risk, including perceived risk and affective risk, and reveals the two-fold mechanism of the decision-making journey. These results enrich the existing literature by supporting the use of the SOR model and introducing review quality as a situational stimulus to explain consumers' risk perception and purchase behaviours in cross-border e-commerce. Additionally, the study also provides valuable guidance in website design that can stimulate purchasing while lowering online perceived risk.