Online Shopping of Electric Vehicles in Jordan: An Analysis of Customers' Risk and Reward Perceptions and the Role of Trust
Authors:   , El Shboul Anwar Raid 
Published: April 2024

The market for online trading of electric cars in Jordan is expanding. However, buyers hesitate to trust sellers due to past experiences of products not meeting their descriptions online. In many countries, this lack of trust in the industry is exacerbated by inadequate regulatory measures to protect customer interests. Despite this, there is a growing trend of customers willing to purchase electric cars online, indicating that they are willing to overlook some level of mistrust but have a limit to their willingness to pay if the mistrust reaches an unacceptable level. This risk appetite is influenced by factors such as the car's value, brand, and the buyer's financial capacity. Customers also consider various factors when purchasing a new technology, such as an electric car, and online buying platforms should provide answers to questions that customers may have. Therefore, it is important to identify the factors influencing a customer's decision to purchase an electric car online and explore the interrelationships between these factors. This study studied buyers’ (consumers’) risk and reward perception in Jordan’s online purchase of electric vehicles. The main purpose of the study: is to analyse customer risk and reward perception in purchasing EVs. Background: The growth of the online Electric Vehicles (EVs) trading market in Jordan is accompanied by many risks and concerns related to the trust, credibility, and privacy of users. Customers in Jordan still prefer the conventional on-site face-to-face showroom view and purchase rather than complete online transactions. This is mainly due to the mistrust of several factors, including potential fraud, information asymmetry, hidden costs, etc. This is one of the key obstacles to EV’s online market growth. This study examines customers’ perception of the online trading of EVs within a risk-reward framework. Design and Methodology: Mixed method study, We collected two sets of primary data from face-to-face interviews and a questionnaire survey in Jordan. The data was analysed using Thematic Analysis and Structural Equation Modelling (SEM) techniques. Findings: We found that perceived rewards and customer trust significantly positively impact the willingness to buy EVs online in Jordan. However, the perceived risks were found to have a negative impact, meaning that at higher risks, the willingness to buy is low. This highlights the importance of addressing customer concerns, building trust, and implementing measures to mitigate risks in online transactions. The findings have practical implications for businesses, policymakers, and regulators, guiding them to tailor marketing strategies, enhance cybersecurity measures, and develop policies that protect consumer rights and promote secure online transactions. Originality and Value: The findings of this study can help policymakers revise and update the relevant legislations that regulate the online EVs market in the country. Furthermore, at the practical level, the sellers can foster their sales through the correct utilisation of buyers’ risk-reward perceptions and boost sales by addressing anxiety and promoting the benefits of EVs.