Perceived risks and customer needs of geographical accessibility in electronic commerce

Customer needs of geographical accessibility still plays an important role in electronic commerce, though the extent to which it does so varies according to the characteristics of products, services and the market strategies of firms. In this study, factors affecting customer needs of geographical accessibility and their structural relationships were investigated through a customer survey and statistical analysis using the methods of confirmatory factor analysis and structural equation modeling. The result shows that the three independent factors, unease of delivery, complexity of services, and trust and reliability affect significantly customer needs of geographical accessibility, with perceived risks of distant orders being a mediating factor in the relationship.