ANVESHAK-International Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Perceived Risk in Online Buying: A Review


Affiliations
1 Research Scholar, Department of Business Administration, Aligarh Muslim University, Aligarh –202001, Uttar Pradesh, India
2 Associate Professor, Department of Business Administration, Faculty of Management Studies & Research, Aligarh Muslim University, Aligarh – 202001, Uttar Pradesh, India
3 Associate Professor, Banarsidas Chandiwala Institute of Professional Study, GGSIP University, Dwarka – 110075, New Delhi, Delhi, India
     

   Subscribe/Renew Journal


The tremendous increase in use of Internet and high growth of technology across the world including India has changed the business environment. Internet has become a major channel of communication. Use of smart phone has increased and has become very popular mode of accessing Internet. Online buying is growing at very fast rate in the world and India. Electronic commerce is also expanding. But the current level of online sales is a small percentage of the total retail sales in India. Amongst the many factors, perceived risk is considered to be a vital factor that affects online consumers’ buying intentions. Hence, to minimize perceived risk, understanding consumers’ online buying behavior and their risk perceptions are required. This study has been done to review and analyze available research to bring out factors influencing perceived risk, types of perceived risk and consequence of perceived risk on intention to online purchase. This will help marketers to plan the strategy to reduce consumers’ risk for online shopping and induce offline shoppers to become potential online customer, and provide suggestion to researchers. 


Keywords

E-commerce, Online Buying Intention, Perceived Risk
Subscription Login to verify subscription
User
Notifications
Font Size


  • Andrew, R.L. & Curim, A.S. (2004). Behavioural differences between consumers attracted to shopping online versus traditional supermarkets: Implications for enterprise design and marketing strategy. International Journal of Internet Marketing and Advertising. 2004, Vol. 1, No. 1, pp. 38-61.

  • Arasuraja, G. (2017). A study on buying behavior consumer satisfaction and loyalty towards online purchase. (Doctor al Dissertation). Retrieved from Sodhganga INFLIBNET.

  • Arshad, A., Zafar, M., Fatima, I & Khan, S.K. (2015). The impact of perceived risk on online buying behavior. International Journal of New Technology and Research (IJNTR), 2015, Vol. 1, No. 8, pp. 13-18.

  • Ba, S., & Pavlou, P. A. (2002). Evidence of the effect of trust in electronic markets: Price premiums and buyer behavior. MIS Quarterly, 2002, Vol. 23, No. 4, pp. 243-268.

  • Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs. NJ: Prentice Hall.

  • Bashir, I. & Madhavaiah, C. (2014). Determinants of young consumers’ intention to use Internet banking services in India. Vision, 2014, Vol. 18, No. 3, pp. 153-163.

  • Batra, R., & Ahtola, O. (1990). Measuring the hedonic and utilitarian sources of consumer attitude. Marketing Letters, 1990, Vol. 2, No. 2, pp. 159-170.

  • Bauer, R.A., 1960. Consumer behavior as risk taking. Robert Hancock(Ed.). Dynamic Marketing for a Changing World, Proceedings of the 43rd. Conference of the American Marketing Association, 389-398.

  • Bhatnagar, A. & Ghosh, S. (2004). A latent class segmentation analysis of E-Shoppers. Journal of Business Research, 2004, Vol. 57, No. 7, pp. 758-767.

  • Bhatt, S. & Bhatt, A. (2012). Factors influencing online shopping: An empirical study in Ahmedabad. The IUP Journal of Marketing Management, Vol. XI, No. 4.

  • Bhatnagar, A, Mishra, S. & Rao, H.R. (2000). On risk, convenience and internet shopping behavior. Communication of the ACM, 2012, Vol. 43, No. 11, pp. 98-105.

  • Boshoff, C., Schlechter, C & Ward, S.J. (2011). Consumers’ perceived risks associated with purchasing on a branded web site: The mediating effect of brand knowledge. South African Journal of Business Management. 2011, Vol. 42, No. 1, pp. 45-54.

  • Bower, A.B. & Maxhem, J.G. (2012). Return shipping policies of online retailers: Normative assumptions and the long-term consequences of fee and free returns. Journal of Marketing, (September 2012), Vol. 76, pp. 110-124.

  • Brown, M., Pope, N. & Voges, K. (2003). Buying or browsing? An exploration of shopping orientations & online purchase intention. European Journal of Marketing, 2003, Vol. 37, No. 11, pp. 1666-87.

  • Chang, H.H. & Chen, S.W. (2008) The impact of online store environment cues on purchase intention: Trust and perceived risk as a mediator. Online Information Review, 2008, Vol. 32, No. 6, pp. 818-841.

  • Chang, C.M, Hsu, M.H & Lee, Y.J. (2016). How can social networking sites help build customer loyalty? An empirical investigation. Total Quality Management, 2016, Vol. 27, No. 1, pp. 111-123.

  • Chao, Wen, B.S, M.S. (2012). The impact of quality on customer behavioral intention based on the consumer decision making process as applied in e-commerce. (Doctoral Dissertation) Available from ProQuest Dissertations and Theses database. (UMI No. 3538138)

  • Chen, Liquiang (2009). Online consumer behaviour: An empirical study based on theory of planned behavior (Doctoral dissertation). Available from ProQuest Dissertations and Theses database. (UMI No.

  • Chen, R. & He, F. (2003). Examination of brand knowledge, perceived risk and consumers’ intention to adopt an online retailer. TQM & Business Excellence, 2003, Vol. 14, No. 6, pp. 677-693.

  • Chiang, K.P. & Dholakia, R.R. (2003). Factors driving consumer intention to shop online: NG An empirical investigation. Journal of Consumer Psychology, 2003, Vol. 13, No. (1&2), pp. 177-183.

  • Childers, T. L., Carr, C. L., Peck, J., & Carson, S. (2001). Hedonic and utilitarian motivations for online retail shopping behavior. Journal of Retailing, 2001, Vol. 77, pp. 417-424.

  • Dahiya, R. (2012). Impact of demographic factors of consumers on online shopping Behaviour: A study of consumers in India. International Journal of Engineering and management.

  • Dowling, G. R. & Staelin, R. (1994). A model of perceived risk and intended risk handling activity. Journal of Consumer Research, 1994, Vol. 21, pp. 119-134.

  • Eastin, M. S., & LaRose, R. (2006). Internet self-efficacy and the psychology of the digital divide. Journal of Computer-mediated Communication, 2006, Vol. 6, No. 1, pp. 1-18.

  • Eggert, A. (2006). Intangibility and perceived risk in online environments. Joumal of Marketing Managetnent, 2006, Vol. 22, No. (5-6), pp. 553-572.

  • Faldu, R. B. (2013). Does E-trust matter? Study of risk perceptions in internet shopping (Doctoral Dissertation). Retrieved from Sodhganga INFLIBNET.

  • Faqih, Khalid M.S. (2013). Exploring the influence of perceived risk and internet self-efficacy on consumer online shopping intentions: Perspective of technology acceptance model. International Management Review. 2013, Vol. 9, No. 1, pp. 68-78.

  • Featherman, M. S., & Pavlou, P. A. (2003). Predicting e-services adoption: A perceived risk facets perspective‖. International Journal of Human Computer Studies, 2003, Vol. 59, pp. 451-474.

  • Flick, K.L (2009). Assessing consumer acceptance of online shopping: Examining factors affecting Purchase intentions. (Doctoral Dissertation). Available from ProQuest Dissertations and Theses

  • database. (UMI No. 3353661)

  • Folarin, T.O. & Ogundare, E.A. (2016). Influence of customers’ perceived risk on online shopping intention in Malayasia’s apparel industry. International Journal of Information System of Engineering,

  • , Vol. 4, No. 2, pp. 69-81. ISSN: 2289-7615.

  • Forsythe, S.M., & B. Shi. (2003). Consumer patronage and risk perceptions in internet shopping. Journal of Business Research, 2003, Vol. 56, No. 1, pp. 867-875.

  • Forsythe, S., Liu, C., Shannon, D., & Gardner, L. (2006). Development of a scale to measure the perceived benefits and risks of online shopping. Journal of Interactive Marketing, 2006, Vol. 20, No. 2, pp. 55-75.

  • Garbarino, E., & Strahilevitz, M. (2004). Gender differences in the perceived risk of buying online and the effects of receiving a site recommendation. Journal of Business Research, 2004, Vol. 57, pp. 768-775.

  • Gerrard, P. & Cunningham, J.B. (2003). The diffusion of internet banking among Singapore consumers. International Journal of Bank Marketing, 2003, Vol. 22, No. 2, pp. 26-28.

  • Goldsmith, R. E. (2000). Characteristics of the heavy user of fashionable clothing. Journal of Marketing Theory and Practice, 2000, Vol. 8, No. 4, pp. 21-28.

  • Guo, Li (2011). A research on influencing factors on consumer purchasing behaviors in cyberspace. International Journal of Marketing Studies, August 2011, Vol. 3, No. 3, pp. 182-188. ISSN 1918-719X, E-ISSN 1918-7203.

  • Guo, Y. and Barnes, S. (2011). Purchase behavior in virtual worlds: An empirical investigation in second life. Information and Management, 2011, Vol. 48, pp. 303-312.

  • Hanjun, K., Jaemin, J., Joo-Young, K., & Sung-Wook, S. (2004). Crosscultural differences in perceived risk of online shopping. Journal of Interactive Advertising, 2004, Vol. 4, No. 2, pp. 20-29.

  • IBEF. (2019, July). e-commerce. Retrieved from https://www.ibef.org/download/Ecommerce-July-2019.pdf

  • Janakiraman, N., Meyer, R.J. & Hoch, S.J. (2011). The psychology of decisions to abandon waits for service. Journal of Marketing Research, 20011, Vol. 48, No. 6, pp. 970-984.

  • Jiang, P. & Rosenbloom, B. (2004). Customer intention to return online: Price perception, attribute-level performance, and satisfaction unfolding over time. European Journal of Marketing, 2004, Vol. 39, No. (1/20), pp. 150-174.

  • Jordon, G., Leskovar, R. & Maric, M. (2018). Impact of fear of identity theft and perceived risk on online purchase intention. Organizacija, 2018, Vol. 51, No. 2, pp.146-155.

  • Joshi, M.S. (2017). A study of online buying behavior among adults in Pune City. SIES Journal of Management. 2017, Vol. 13, Iss. 1, pp. 29-37.

  • Joshi, D. & Achutan, S. (2016). E-commerce buying behavior in India: The role of website features in e-loyalty. South Asian Journal of Management, 2016, Vol. 23, No. 1, pp. 56-88.

  • Koufaris, M. (2002). Applying the technology acceptance model and flow theory to online consumer behavior. Information Systems Research, 2002, Vol. 13, No. 2, pp. 205-223.

  • Khan, A. (2017). A study on E-tailing: Factors affecting online buying behavior of Indian consumers. (Doctoral Dissertation). Retrieved from Sodhganga INFLIBNET.

  • Khurana, A. & Mehra, J. (2015). The consumer risk perception towards online shopping at different age groups. International Journal of Informative and Futuristic Research, 2015, Vol. 3, Iss. 4. ISSN:23471697.

  • Kim, Iksuk (2001). Investigating effect of consumer’s perceived risk on purchase intention in internet shopping (Doctoral dissertation). Available from ProQuest Dissertations and Theses database. (UMI No. 3043743)

  • Kim, S.H. & Byramjee, F. (2014). Effects of risks on online consumers’ purchasing behavior: Are they risk-averse or risk-taking? The Journal of Applied Business Research, 2014, Vol. 30, Iss. 1, pp. 161-171.

  • Kim, J. & Forsythe, S. (2010), Factors affecting adoption of product virtualization technology for online consumer electronics shopping. International Journal of Retail & Distribution Management, 2010, Vol. 38, No. 3, pp. 190-204.

  • Kim, Y.H., & Kim, D.J. (2005). A study of online transaction selfefficacy, consumer trust and uncertainty reduction in electronic commerce transaction. Proceedings of the 38th Hawaii International Conference on System Sciences.

  • Kim, J., & Lennon, S. J. (2013). Effects of reputation and website quality on online consumers’ emotion, perceived risk and purchase intention. Journal of Research in Interactive Marketing, 2013, Vol. 7, pp. 33-56.

  • Kumari, N. (2017). Segmenting the online consumer market by online purchase behavior in Eastern India perspective. Retrieved from Sodhganga INFLIBNET.

  • Lewis, W., Agarwal, R. & Sambamurthy, V. (2003). Sources of influence on beliefs about information technology use: an empirical study of knowledge workers. MIS quarterly, 2003, pp. 657-678.

  • Lim, N. (2003). Consumers Perceived Risk: Sources verses Consequences. Electronic Commerce Research and Applications 2003, Vol. 2, pp. 216-228.

  • Lim, W.M. (2017). Untangling the relationships between consumer characteristics, shopping values, and behavioral intention in online group buying. Journal of Strategic Marketing, 2017, Vol. 25, Iss. 7, pp. 547-566.

  • Littler, D. & Melanthiou, D. (2006). Consumer perceptions of risk and uncertainty and the implications for behaviour towards innovative retail services: the case of internet banking. Journal of Retailing and

  • Consumer Services, 2006, Vol. 13, Iss. 6, pp. 431-443.

  • Lwin, M., Wirtz, J., & Williams, J. (2006). Promises, promises: How consumers respond to warranties in internet retailing. The Journal of Consumer Affairs, 2006, Vol. 4, Iss. 2, pp. 236-257. Retrieved February 2, 2007, from ProQuest database

  • Malik, G. & Gupta, A. (2013). An empirical study on behavioral intent of consumers in online shopping. Business Perspectives and Research, July-December, 2013.

  • Manning, K. C., Bearden, W.O. & Madden, T.J. (1995), Consumer innovativeness and the adoption process. Journal of Consumer Psychology, 1995, Vol. 4, Iss. 4, pp. 329-345.

  • Martin, S. S., Camarero, C. (2008). Consumer trust to a web site: Moderating effect of attitudes toward online shopping. Cyb. Psychol. Behav., 2008, Vol. 11, No. 5, pp. 549-554.

  • Masoud, E. Y. (2013). The effect of perceived risk on online shopping in Jordan. European Journal of Business and Management, 2013, Vol. 5, No. 6, pp. 76-87. Retrieved from www.iiste.org

  • Midgley, D.F., & Dowling, G.R. (1978). Innovativeness: The concept and its measurement. Journal of Consumer Research, 1978, Vol. 4, No. 4, pp. 229-242.

  • Mishra, S. (2009). A conceptual framework for creating customer value in e-retailing in India. South Asian Journal of Management, 2009, Vol. 16, No. 4, pp. 127-147.

  • Mishra, S. (2013). Analyzing perceived risks and website attributes in e-retailing: A study from India. Journal of Internet Banking and Commerce, Vol. 18(2). (http://www.arraydev.com/commerce/jibc/)

  • Miyazaki, A. D. Fernandez. (2001). A. Consumer perceptions of privacy and security risks for online shopping. The Journal of Consumer Affairs, 2001, Vol. 35, No. 1, pp. 27-44.

  • Mohammad J, Hossein, D, Mojtaba, N, & Amir, P (2012). An analysis of factors affecting on online shopping behavior of consumers. International Journal of Marketing Studies, Vol. 4, No. 5, pp. 81-98.

  • Mukherjee, A. & Nath, P. (2003). A model of trust in online relationship banking. International Journal of Bank Marketing, 2003, Vol. 21, No. 1, pp. 5-15.

  • Naiyi, Y.E. (2004). Dimensions of consumers’ Perceived risk in online shopping. Journal of electronic Science and Technology of China, Sept. 2004, Vol. 2, No. 3, pp. 177-182.

  • Ndubisi, N. O., & Sinti, Q. (2006). Consumer attitudes, system’s characteristics and internet banking adoption in Malaysia. Management Research News, 2006, Vol. 29, No. (1/2), pp. 16-27.

  • Nicolaou, A.I. & McKnight, D.H. (2006). Perceived information quality in data exchanges: effects on risk, trust, and intention to use.

  • Information Systems Research. (December 2006), Vol. 17, No. 4, pp. 332-351

  • Overby, J. W., & E.-J. Lee. (2006). The effects of utilitarian and hedonic online shopping value on consumer preference and intentions. Journal of Business Research, 2006, Vol. 59, pp. 1160-1166. [73] Park, C. & Jun, J. (2003). A cross-cultural comparison of internet buying behavior: Effects of internet usage, perceived risks, & innovativeness. International Marketing Review, 2003, Vol. 20. Iss. 5, pp. 534-53.

  • Park, C. H., & Kim, Y. G. (2003). Identifying key factors affecting consumer purchase behavior in an online shopping context. International Journal of Retail & Distribution Management, 2003, Vol. 31, Iss. 1, pp. 16-29.

  • Pavlou, P. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 2003, Vol. 7, pp. 101-134.

  • Pavlou, P. A. & Fygenson, M. (2006). Understanding and predicting electronic commerce adoption: An extension of the theory of planned Behavior. MIS Quarterly, 2006, Vol. 30, Iss. 1, pp. 115-143.

  • Prasad, J.S. & Aryasri, A. R. (2009). Determinants of shopper behaviour in E-tailing: An empirical analysis. Paradigm, 2009, Vol. XIII, No. 1.

  • Rahman, S.S. (2018). A study of growth in online buying and its impact on conventional buying in Hyderabad. (Doctoral Dissertation). Retrieved from Sodhganga INFLIBNET

  • Raman, P. (2017). What women want? An analysis of demographics and different factors influencing online shopping in India. Journal of Business and Management, 2017, Vol. 23, Iss. (1/2), pp. 82-118.

  • Rathee, V. & Prakash, C. (2017). A Study of impact of Demographic factors on perception of online shopping risk. International Research Journal of Commerce Arts and Science. 2017, Vol. 8 Issue 9, pp. 156163. ISSN 2319 – 9202. Available at http://www.casirj.com

  • Rubab, N. & Shoukat, S. (2018). The impact of website designing factors on online purchase intention: Evidence from fashion brands. The IUP Journal of Marketing Management, 2018, Vol. XVII, No. 1, pp. 53-72.

  • Sahney, S., Srivastava, A. & Bhimalingam, R. (2008). Consumer attitude towards online retail shopping in the Indian context. The Icfai University Journal of Consumer Behavior, 2008, Vol. III, No. 4.

  • Sarkar, A. (2011). Impact of utilitarian and hedonic shopping values on individual’s perceived benefits and risks in online shopping. International Management Review. 2011, Vol. 7, No. 1.

  • Schiffman, L. & Kanuk, L. L. (2007). Consumer behavior, Eighth Edition. Pearson Education

  • Shafeeque, A.P. M. & Thomachan, K.T. (2017). Risk perception in e-commerce: A holistic review of emerging online shopping in India. International Journal of Retail & Distribution Management, 2003, Vol. 31, Iss. 1, pp. 16-29.

  • Pavlou, P. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 2003, Vol. 7, pp. 101-134.

  • Pavlou, P. A. & Fygenson, M. (2006). Understanding and predicting electronic commerce adoption: An extension of the theory of planned Behavior. MIS Quarterly, 2006, Vol. 30, Iss. 1, pp. 115-143.

  • Prasad, J.S. & Aryasri, A. R. (2009). Determinants of shopper behaviour in E-tailing: An empirical analysis. Paradigm, 2009, Vol. XIII, No. 1.

  • Rahman, S.S. (2018). A study of growth in online buying and its impact on conventional buying in Hyderabad. (Doctoral Dissertation). Retrieved from Sodhganga INFLIBNET

  • Raman, P. (2017). What women want? An analysis of demographics and different factors influencing online shopping in India. Journal of Business and Management, 2017, Vol. 23, Iss. (1/2), pp. 82-118.

  • Rathee, V. & Prakash, C. (2017). A Study of impact of Demographic factors on perception of online shopping risk. International Research Journal of Commerce Arts and Science. 2017, Vol. 8 Issue 9, pp. 156-163. ISSN 2319 – 9202. Available at http://www.casirj.com

  • Rubab, N. & Shoukat, S. (2018). The impact of website designing factors on online purchase intention: Evidence from fashion brands. The IUP Journal of Marketing Management, 2018, Vol. XVII, No. 1, pp. 53-72.

  • Sahney, S., Srivastava, A. & Bhimalingam, R. (2008). Consumer attitude towards online retail shopping in the Indian context. The Icfai University Journal of Consumer Behavior, 2008, Vol. III, No. 4.

  • Sarkar, A. (2011). Impact of utilitarian and hedonic shopping values on individual’s perceived benefits and risks in online shopping. International Management Review. 2011, Vol. 7, No. 1.

  • Schiffman, L. & Kanuk, L. L. (2007). Consumer behavior, Eighth Edition. Pearson Education [85] Shafeeque, A.P. M. & Thomachan, K.T. (2017). Risk perception in e-commerce: A holistic review of emerging online shopping in India.

  • Tsen, H.L., Lee, Y.C. & Chu, P.Y. (2015). Improvisational capabilities in e-commerce adoption: A multiyear comparison. Journal of Global Information Technology Management, 2015, Vol. 18, Iss. 1, pp. 48-66.

  • Wadera, D. & Sharma, V. (2018). Impulsive buying behavior in online fashion apparel shopping:An investigation of the influence of the internal and external factors among Indian shoppers. South Asian

  • Journal of Management, 2018, Vol. 25, No. 3, pp. 55-82.

  • Wang, Y.S., Wang, Y.M., Lin, H.H. & Tang, T.I. (2003). Determinants of user acceptance of internet banking: an empirical study. International Journal of Service Industry Management, 2003, Vol. 14, No. 5, pp.

  • -519.

  • Youn, S. (2009). Determinants of online privacy concern and its influence on privacy protection behaviors among young adolescents. Journal of Consumer Affairs, 2009, Vol. 43, No. 3, pp. 389- 418.

  • Zhang, L., Tan, W., Xu, Y. & Tan, G. (2011). Dimensions of consumers’ perceived risk and their influences on online consumers’ purchasing behavior. Communications in Information Science and Management Engineering, 2011, Vol. 2, Iss. 7, pp. 8-14. www.jcisme.org C 2011-2012 World Academic Publishing https://www.emarketer.com/


Abstract Views: 566

PDF Views: 0




  • Perceived Risk in Online Buying: A Review

Abstract Views: 566  |  PDF Views: 0

Authors

Ram Narayan Ray
Research Scholar, Department of Business Administration, Aligarh Muslim University, Aligarh –202001, Uttar Pradesh, India
Mohammed Naved Khan
Associate Professor, Department of Business Administration, Faculty of Management Studies & Research, Aligarh Muslim University, Aligarh – 202001, Uttar Pradesh, India
Shamsher Singh
Associate Professor, Banarsidas Chandiwala Institute of Professional Study, GGSIP University, Dwarka – 110075, New Delhi, Delhi, India

Abstract


The tremendous increase in use of Internet and high growth of technology across the world including India has changed the business environment. Internet has become a major channel of communication. Use of smart phone has increased and has become very popular mode of accessing Internet. Online buying is growing at very fast rate in the world and India. Electronic commerce is also expanding. But the current level of online sales is a small percentage of the total retail sales in India. Amongst the many factors, perceived risk is considered to be a vital factor that affects online consumers’ buying intentions. Hence, to minimize perceived risk, understanding consumers’ online buying behavior and their risk perceptions are required. This study has been done to review and analyze available research to bring out factors influencing perceived risk, types of perceived risk and consequence of perceived risk on intention to online purchase. This will help marketers to plan the strategy to reduce consumers’ risk for online shopping and induce offline shoppers to become potential online customer, and provide suggestion to researchers. 


Keywords


E-commerce, Online Buying Intention, Perceived Risk

References





DOI: https://doi.org/10.15410/aijm%2F2021%2Fv10i2%2F160803