Abstract:

In the emerging markets, the unbalance development of e-commerce leads to consumer’s high perceived risk. Therefore, companies offers different payment methods for consumers, such as cash on delivery (COD) and online payment. This study investigates how consumer’s shopping channel and order size affect the payment methods, and we also test the moderating effects of purchase experience. 60484 consumers of JD.com are selected in our study. Based on their purchase data, we find the main results by using panel data model that (1) The using of mobile channel has a positive effect on COD, implying that when consumers use mobile to purchase, they have a higher possibility to use COD. (2) The order size has a positive effects on COD, that is to say, when the purchase amount increase, the possibility of using COD also increase. (3) Furthermore, when consumers’ purchase experience abound, mobile channel’s positive effect on COD will be decreased, but it doesn’t affect the positive effect between order size and COD. Our study investigates consumer’s behavior before the payment decision, which contributes to the payment theory. Moreover, the results about shopping channel, order size and purchase experience are also important to the companies.

Key words:  Mobile Channel, Order Size, Purchase Experience, Payment Methods