In this study, a research model is developed based on risk-taking theory. Risk-taking
theory suggests that risk perception of individuals affect their risk behavior (Sitkin and
Pablo, 1992). Cunningham (1967) defined perceived risk as composed of two
dimensions: uncertainty and consequence. Uncertainty refers to the probability of
negative outcome, and consequence refers to the magnitude of negative outcome. In
online markets, perceived risk is the buyer’s perception of the uncertainty and the
possible adverse consequences of buying from a seller (Dowling and Staelin, 1994). BIN
purchase is studied as a risk taking behavior, while risk relief service adoption is
studied as a risk reducing behavior. They are both expected to be determined by the
buyer’s perceived risk in the BIN transactions. Product factors (product price, product
type), seller factor (seller reputation), and buyer factor (risk attitude) are antecedents to
perceived risk because they are related to either dimension of perceived risk. Risk
attitude is expected to have direct impacts on BIN purchase and risk relief service
adoption because risk-taking theory implies that risk propensity of individuals may
affect their risk behavior.