Perceived Risk and Consumer Behavior Towards Online Shopping: An Empirical Investigation

The past decade has witnessed the beginning of a major directional change of consumer behaviour, from physical stores purchasing to online purchasing behaviour, in the retailing industry. In India, internet is still considered as a new medium to link customers with retailers. Still Indian people have been attached to the traditional brick and mortar stores, they take online shopping as a risk. In this study author have attempted to find out the factors leading to perceived risk with online shopping. Reliability coefficient for the scale containing 18 variables was satisfactory and factor analysis generated 6 major factors: product risk, financial performance risk, psychological risk, time risk, delivery capability risk and website performance risk.