Effect of Cybercrime On Consumer Internet Behavior
Student’s Name
Institution Affiliation
Effect of Cybercrime on Consumer Internet Behavior
The evolution of the internet has had both positive and negative impacts in the online business sector. It has revolutionized how consumers gather product information, allowing them to quickly sort, compare prices, and make purchases at their comfort. Despite the enhancement of consumer conveniences when transacting business through the World Wide Web platform, there has been increasing criticism and fear among online customers due to cybercrime threats. In addition to its economic implications, cyber-attacks have significantly influenced internet activities globally. Cybercrime impacts consumers’ internet behavior by limiting product and service information gathering, and negatively altering shopping behavior, hence reducing the overall internet’s appeal as a viable retailing platform.
The surge in the cases of cyber-attacks on web-enabled business continues to adversely affect the customers’ perceptions of risk associated with transacting business or sourcing products and services’ information online. Consumers globally are informed of the fraudulent internet activities such as spamming, unauthorized sharing of data with third parties, usage tracking, and data collection, resulting in the theft of personal data. According to Goldberg (2016), 45% of the participants in the National Telecommunications and Information Administration’s research identified cyber insecurity as the reason behind their reduced engagement in online activities, including deterrence from looking up information online. The fear of privacy violation has made most of them shy away from searching for products or services’ information on the internet. Metzger and Flanagin (2015) explain that users’ online experiences and knowledge influence their credibility beliefs. In this case, cyber-attacks lowers their trust in the integrity of information posted online. Some choose to employ other channels like brick-and-mortar establishments to get the products and services’ info. Subsequently, their frequency of inquiring and acquiring products and services online reduces.
The consumer experiences directly correlate with their repeat purchase behavior both in online and physical stores. Their awareness and ordeals from internet crimes erode the existing trust between them and web-enabled business, minimizing their engagement in relationship exchanges. According to Goldberg (2016), the prominence of data breaching reports, security controversies of online business platforms, and cybersecurity incidents limit online activities. Cybercrime victims are inclined to avoid repeating the same mistakes out of fear of the consequence they faced. Jordan, Leskovar, and Marič (2018) explain that consumers’ tendency to procure products or services depends on their purchase intentions influenced by the subjective feelings of certainty of positive acquisition outcomes. The perceived risk of engaging in online transactions increases with the rise in the possibility of theft of financial or personal data. Consequently, negative past experiences or external stimuli such as media reports on cyber-attacks lessen a customer’s purchase intentions because of high perceived risks, thus lowering the possibility of repeat purchases.
In summary, awareness and experiences of fraudulent online activities discourage consumers from looking up products and services and significantly reduces their intention of repeat purchases. Cybercrime lowers the internet’s informational value and trust between the clients and the web-based business, forcing them to seek alternative channels to get their desired product and services’ information. Moreover, cybercrime victims find the internet unsafe to conduct their online transactions. The resulting increase in perceived risk lowers their likelihood of a repeat purchase. Therefore, there would be a positive change in consumer internet behavior with the enactment of cybercrime countermeasures. They will feel safer and more confident to carry out their business transactions over the internet.
References
Goldberg, R. (2016, May 13). Lack of Trust in Internet Privacy and Security May Deter Economic and Other Online Activities. Retrieved August 19, 2020, from https://www.ntia.doc.gov/blog/2016/lack-trust-internet-privacy-and-security-may-deter-economic-and-other-online-activities
Jordan, G., Leskovar, R., & Marič, M. (2018). Impact of Fear of Identity Theft and Perceived Risk on Online Purchase Intention. Organizacija, 51(2), 146-155. doi:10.2478/orga-2018-0007
Metzger, M. J., & Flanagin, A. J. (2015). Psychological Approaches to Credibility Assessment Online. The Handbook of the Psychology of Communication Technology, 445-466. doi:10.1002/9781118426456.ch20