Influence of Perceived Risks on Consumers' Online Purchase Behaviour

This article describes how online shopping has been emerging as an important part of consumers' life style in almost all developed countries as well as developing countries. People can buy anything at any time and from anywhere through online shopping. Consumers have to deal with risks they perceive about the product, the environment, or the buying process. Beside the vast benefits of online shopping, consumers perceive different type of risks involved in online shopping environments. Therefore, consumers have to deal with the risks they perceive in relation to financial risk, product performance risk, convenience risk, security & privacy risk and health risk. These perceived risk factors determine the consumers' purchase behaviour towards online shopping. The purpose of this article is to analyze the dimensions of risk and the perceptions of the consumers in online shopping processes. The findings of the study would help the e-retailers to have a better understanding and to develop strategies to eliminate or reduce risk perceptions of the target consumers.

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THE EFFECT OF WEB VENDOR TRUST ON TURKISH ONLINE SHOPPERS BUYING BEHAVIOR

Australian Journal of Business and Management Research ◽

10.52283/nswrca.ajbmr.20110106a09 ◽

2012 ◽

Vol 01 (06) ◽

pp. 87-96

Author(s):

Tolon Metehan ◽

Zengin Asude Yasemin

Keyword(s):

Customer Loyalty ◽

Perceived Risk ◽

Risk Perceptions ◽

Online Shopping ◽

Point Of View ◽

Purchase Behavior ◽

Buying Behavior ◽

Online Purchase ◽

Online Shoppers ◽

Virtual Platform

Firms’ primary objectives are gaining profit and providing continuity. During the recent years virtual platforms are the most popular and strategic way to achieve these objectives. According to this, firms try find different markets to improve their market share as well as their profits. From this point of view increase in sales at virtual platform depends on customers’ trust upon total online system in the related market. In order to create customer loyalty at virtual platform, firms must build trust between firm and customer. For this purpose, it is of strategic importance for e-commerce to create trust among their customers. At this point, firms have to determine trust and perceived risk related to online shopping. Especially firms which want to operate in internet have to analyze trust dimensions and risk perceptions of customers in related online shopping. In this study, the effect of the trust and perceived risk of Turkish customers over online purchase behavior/online shopping has been presented empirically.

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THE EVALUATION OF THE RELATIONSHIPS AMONG PERCEIVED RISK OF DELIVERY, ONLINE PURCHASE ATTITUDE, AND INTENTION OF CONSUMERS

Business And Management Studies An International Journal ◽

10.15295/bmij.v8i4.1724 ◽

2020 ◽

Vol 8 (4) ◽

pp. 445-463

Author(s):

Hayriye Nur BAŞYAZICIOĞLU

Keyword(s):

Perceived Risk ◽

Purchase Intention ◽

Financial Risk ◽

Online Shopping ◽

Product Variety ◽

Essential Elements ◽

Primary Data ◽

Survey Method ◽

Face To Face ◽

Online Purchase

Although online shopping offers many benefits to consumers such as product variety, price comparison opportunity, space, and time convenience, it is seen that the online purchase intention of consumers is affected by the risks of online shopping. In the literature, the risks of online shopping have been examined in general, but it has been found that delivery risk, one of the essential elements of online shopping, has not been addressed in detail. Therefore, this study aims to examine the perceived delivery risks of consumers in online shopping. For this purpose, primary data was collected with a face-to-face survey method from 482 respondents. The confirmatory factor analysis determined that the perceived delivery risk consisted of four factors, namely product risk, non-delivery risk, financial risk, and time risk. In the second stage, the effects of these risks on online purchase attitude and intention were analysed with path analysis. Therefore, this study is thought to fill an essential gap in the literature and will guide future studies.

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Factors Influencing Online Shopping Behavior of Urban Consumers in India

International Journal of Online Marketing ◽

10.4018/ijom.2015010103 ◽

2015 ◽

Vol 5 (1) ◽

pp. 38-50 ◽

Cited By ~ 4

Author(s):

Rajyalakshmi Nittala

Keyword(s):

Perceived Risk ◽

Financial Risk ◽

Online Shopping ◽

Shopping Behavior ◽

Factors Influencing ◽

Internet Users ◽

Online Retailers ◽

Product Risk ◽

Electronic Marketing ◽

Online Shopping Behavior

This study examines the factors influencing online shopping behavior of urban consumers in the State of Andhra Pradesh, India and provides a better understanding of the potential of electronic marketing for both researchers and online retailers. Data from a sample of 1500 Internet users (distributed evenly among six selected major cities) was collected by a structured questionnaire covering demographic profile and the factors influencing online shopping. Factor analysis and multiple regression analysis are used to establish relationship between the factors influencing online shopping and online shopping behavior. The study identified that perceived risk and price positively influenced online shopping behavior. Results also indicated that positive attitude, product risk and financial risk affect negatively the online shopping behavior.

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Impact of Perceived Risk on Consumers Technology Acceptance in Online Grocery Adoption amid COVID-19 Pandemic

Sustainability ◽

10.3390/su131810221 ◽

2021 ◽

Vol 13 (18) ◽

pp. 10221

Author(s):

Sufyan Habib ◽

Nawaf N. Hamadneh

Keyword(s):

Perceived Risk ◽

Purchase Intention ◽

Online Shopping ◽

Research Work ◽

Mobile Internet ◽

Growth Potential ◽

Internet Technology ◽

Consumer Trust ◽

Online Purchase ◽

The Impact

E-commerce industry has witnessed a phenomenal growth globally due to the sudden spread of the COVID-19 pandemic and the advancement of mobile Internet technology, with fast adaption of online shopping technologies by the customers. Previously, online shopping was only available in a few product categories and to a select group of consumers. The COVID-19 guidelines related to safety, physical distancing, closure, lockdown, and other restrictions have insisted that consumers shop online. Because of e-commerce growth, the grocery (FMCG) industry is also equipped with advanced technologies such as the Internet of Things (IoT), cloud computing, and block chain technology. This paper analyzes the UTAUT2 model and its influence on perceived risk and consumer trust in online purchase intention of grocery categories of products among Indian customers. We tried to analyze the growth potential of new technologies in grocery retail and formulated the hypotheses. The results showed that the spread of COVID-19 pandemic had a significant influence on the online shopping behavior of Indian customers. The outcome of the study partly assists businesses in understanding the impact of the factors of consumer adaption of technology, perceived risk associated with online transaction, consumer trust in online technologies and consumer online purchase intention of grocery products. To promote e-commerce in India, the current study suggests that marketers should try to develop consumer trust and lowering the perceived risk associated with online shopping. Some management implications and future area of study based on empirical findings are also highlighted in the present research work.

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Factors Influencing Online Shopping Behavior of Urban Consumers in India

Multigenerational Online Behavior and Media Use ◽

10.4018/978-1-5225-7909-0.ch064 ◽

2019 ◽

pp. 1171-1185

Author(s):

Rajyalakshmi Nittala

Keyword(s):

Perceived Risk ◽

Financial Risk ◽

Online Shopping ◽

Shopping Behavior ◽

Factors Influencing ◽

Internet Users ◽

Online Retailers ◽

Product Risk ◽

Electronic Marketing ◽

Online Shopping Behavior

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MODEL PERCEIVED RISK AND TRUST: E-WOM AND PURCHASE INTENTION (THE ROLE OF TRUST MEDIATING IN ONLINE SHOPPING IN SHOPEE INDONESIA)

Dinasti International Journal of Digital Business Management ◽

10.31933/dijdbm.v2i2.651 ◽

2021 ◽

Vol 2 (2) ◽

pp. 204-221

Author(s):

Ridho Rafqi Ilhamalimy ◽

Hapzi Ali

Keyword(s):

Data Analysis ◽

Perceived Risk ◽

Purchase Intention ◽

Design Methodology ◽

Online Shopping ◽

Practical Implication ◽

Analysis Method ◽

Online Purchase ◽

Data Analysis Method

Purpose. This study discusses the Role of Trust in Mediating eWOM and Perceived Risk of Online Purchase Intention in Shopee. Design / methodology / approach. This study was conducted in Jakarta using 185 samples using SEM-PLS data analysis method. Findings. Trust is able to act as mediating between ewom and also perceived risk of online purchase intention in shopee. Practical implication. Shopee companies should be able to provide reliability in services and various features, and also increase security when consumers shop online at Shopee, because it can create an interest in buying online on an ongoing basisTheoretical implications. This research has limitations that can be used as advice or input for further research.

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Consumer perceived risk in online shopping environment via Facebook as medium

International Journal of Engineering & Technology ◽

10.14419/ijet.v7i2.18.11017 ◽

2018 ◽

Vol 7 (4) ◽

pp. 2485 ◽

Cited By ~ 1

Author(s):

Charu Panwar

Keyword(s):

Perceived Risk ◽

Financial Risk ◽

Online Shopping ◽

Shopping Behavior ◽

Purchase Behavior ◽

Primary Study ◽

Product Risk ◽

Considerable Impact ◽

And Gender ◽

Online Shopping Behavior

The study aims to understand the consumer buying behavior while shopping online. The study unveils the multidimensional perceived risk in online shopping that will be helpful for the marketers in mitigating the perceived risk. The study used universally accepted determinants of consumers’ perceived risk namely financial risk, product risk, delivery risk, time risk and privacy risk. This multi-pronged perceived risk has significant impact on the online shopping behavior of the customer and adversely affects their purchase behavior. The total number of 180 respondent has been selected for the primary study. The convenient sampling method of non-probability sampling has been used for selection of respondents. The study found that the demographics have a major role to play on consumers’ perception towards online shopping. Income and gender are the two important factors identified that may have considerable impact on consumers’ perception towards online shopping. T-test, ANOVA and regression analysis has been used for data analysis purpose.

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THE EFFECTS OF PERCEIVED RISK ON THE WORD-OF-MOUTH COMMUNICATION DYAD

Social Behavior and Personality An International Journal ◽

10.2224/sbp.2006.34.10.1207 ◽

2006 ◽

Vol 34 (10) ◽

pp. 1207-1216 ◽

Cited By ~ 18

Author(s):

Tom M. Y. Lin ◽

Cheng-Hsi Fang

Keyword(s):

Perceived Risk ◽

Financial Risk ◽

Word Of Mouth ◽

Negative Relationship ◽

Social Risk ◽

Positive Effects ◽

Performance Risk ◽

Expected Performance ◽

And Performance ◽

Product Familiarity

This study examined the effects of perceived risk on the sender and the receiver of word-of-mouth (WOM) communication. Regression analysis of 675 questionnaires administered in Taiwan metropolitan areas confirmed that financial risk and performance risk have significant positive effects on WOM's influencing of the receiver's purchase decision, whereas social risk and psychological risk have significant positive effects on the sender's intention of WOM spread. Product familiarity was identified as a moderator of the relationship between expected performance risk and WOM spread. There was a negative relationship between expected performance risk and WOM spread when people were unfamiliar with the product.

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Influence of consumers’ perceived risk on consumers’ online purchase intention

Journal of Research in Interactive Marketing ◽

10.1108/jrim-11-2017-0100 ◽

2018 ◽

Vol 12 (3) ◽

pp. 309-327 ◽

Cited By ~ 18

Author(s):

Shaizatulaqma Kamalul Ariffin ◽

Thenmoli Mohan ◽

Yen-Nee Goh

Keyword(s):

Perceived Risk ◽

Purchase Intention ◽

Online Shopping ◽

Social Risk ◽

Security Risk ◽

Content Type ◽

Perceived Risks ◽

Online Purchase ◽

Online Retailers ◽

The Relationship

Purpose This paper aims to examine the relationship between six factors of consumers’ perceived risk and consumers’ online purchase intentions. In particular, this study will examine the relationship between financial risk, product risk, security risk, time risk, social risk and psychological risk and online purchase intention. Design/methodology/approach Survey method was used for the purpose of data collection, and quantitative analysis was used to test the hypotheses. A total of 350 respondents participated on an online survey, and data were quantitatively analyzed via IBM SPSS Statistics 24. Findings The findings from this study suggest consumers’ perceived risks when they intend to purchase online. Five factors of perceived risk have a significant negative influence on consumer online purchase intention, while social risk was found to be insignificant. Among these factors, security risk is the main contributor for consumers to deter from purchasing online. Practical implications This study provides useful information to online retailers in electronic commerce (e-commerce) activities. Previous studies show that many online retailers are still facing some risks in online business, and this will affect the transaction and performance of the retailers. It is hoped that the findings can help online retailers to formulate strategies to reduce risks in the online shopping environment, especially security risks for better e-commerce. Originality/value The development of online shopping has led to some challenges to consumers, which comprise security of payment, data protection, the validity and enforceability of e-contract, insufficient information disclosure, product quality and enforcement of rights. This issue emerged because many online retailers do not understand the main factors that will contribute to consumers’ perceived risk. Consumers’ perceived risks will influence consumer attitudes toward online shopping and purchase behaviors. Studies on consumers’ perceived risks toward online purchase intentions are still inconclusive. Thus, this paper fills the gap in the research area.

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Online and Offline Shopping Motivation of Apparel Consumers in Ibadan Metropolis, Nigeria

International Journal of Marketing Studies ◽

10.5539/ijms.v8n1p150 ◽

2016 ◽

Vol 8 (1) ◽

pp. 150 ◽

Cited By ~ 3

Author(s):

Bukola Olamidun Falode ◽

Adetoun Adedotun Amubode ◽

Mojisola Olanike Adegunwa ◽

Sunday Roberts Ogunduyile

Keyword(s):

Online Shopping ◽

Developed Countries ◽

Sampling Techniques ◽

Motivating Factors ◽

Apparel Shopping ◽

Multi Stage ◽

Convenience Sampling ◽

Almost All ◽

Shopping Motivation ◽

Hedonic Shopping

Shopping today is much more than just buying, it is an experience itself. Consumers now value convenience and choice as well as getting value for their hard-earned money. Motivation is where consumption starts, where it all begins, with the acknowledgement of a need. Online shopping has shown to provide more satisfaction to modern consumers seeking convenience and speed, however, in a country like Nigeria, consumers still buy a lot from shops and malls thereby still making offline shopping very relevant. This research made use of multi-stage sampling; using purposive, simple random and convenience sampling techniques. A four point Likert Scale was used to measure consumers’ shopping motivation and preferred shopping platform.Most of the research on online shopping focuses on consumers in developed countries with little or none among Nigerian consumers. Consequently, this study provides information on apparel shopping motivation (utilitarian and hedonic) of the average Nigerian; such information is beneficial for online and offline Fashion merchants that seek to retain customers.Consumers of this study were affected by all the utilitarian motivating factors as well as almost all the hedonic shopping motivations measured. It was revealed that the respondents preferred to shop offline than online shopping platforms.In conclusion, the consumers of this study are fashion conscious, utilitarian and hedonic shoppers, however, they prefer the offline shopping platforms.

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