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

By Shaizatulaqma Kamalul Ariffin, T. V. Krishna Mohan, Yen-Nee Goh. Journal of Research in Interactive Marketing, 2018

448 citations recorded by the source corpus.

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.

Subfields: Information Systems and Management, Marketing, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/786b438c6df8969d97700a765e3ca931a34a40c4

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Information Systems and Management

In Marketing

In Sociology and Political Science

Citations in the corpus

Effects of perceived service quality, website quality, and reputation on purchase intention: The mediating and moderating roles of trust and perceived risk in online shopping (2021, methodology): “Perceived risk was measured using 23 items [financial risk (five items), product risk (five items), security risk (five items), time risk (four items) and social risk (four items)] adapted from Kamalul Ariffin et al. (2018).”
MODEL PERCEIVED RISK AND TRUST: E-WOM AND PURCHASE INTENTION (THE ROLE OF TRUST MEDIATING IN ONLINE SHOPPING IN SHOPEE INDONESIA) (2021, background): “(Kamalul Ariffin et al., 2018) that the perceived risk perception has a significant negative influence on the intention of online purchases.”