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Purpose

This paper aims to explore consumer perceptions of Internet‐based e‐retailing in a highly concentrated retail market environment.

Design/methodology/approach

The present research incorporates market and social factors to examine consumer attitude and behavioral intention to use internet‐based e‐retailing based on the survey data collected from individuals in Hong Kong.

Findings

The empirical results suggest that perceived usefulness and perceived ease of use have positive impact on consumer attitude towards e‐retail business. The easily accessible local retail market and the concern about risk in the virtual environment significantly affect consumer attitude and behavioral intention to use e‐retailing. However, consumers may consider using e‐retailing if they are influenced by particular social groups.

Research limitations/implications

Future research can be carried out along similar contextual dimensions to explore consumer behavior and critical success factors of e‐retail business in different geographical environments and social contexts.

Originality/value

The present findings have theoretical and practical implications for managing and developing e‐retail business.

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