Examining the Effects of Perceived Risk on Consumer’s Online Purchase Intention in Klang Valley

Abstract

This study examined the relationship between perceived risk and online purchase intention, including the roles of trust and subjective norms as a mediator and moderator in the relationship. A survey method was used to collect data and the hypotheses were tested using quantitative analysis. 250 respondents completed the online survey, and the results were evaluated using IBM SPSS Statistics 26 and SmartPLS 3.3.3. Based on the findings, perceived risk was found to negatively affect online purchase intention and trust, while trust was positively associated with online purchase intention and significantly mediated the relationship between perceived risk and online purchase intention. Subjective norms were also found to moderate the relationship between perceived risk and online purchase intention. Thus, when the level of subjective norm is low, the relationship between perceived risk and online purchase intention becomes stronger. This study would be beneficial to the online vendors involved in e-commerce activities. Since many online vendors are still facing certain risks in their online businesses that would consequently affect their transactions and performance, they can use the insights gained from the findings of this study to have a better understanding of consumers and provide effective marketing strategies to enhance trust and reduce risks.

The Influence of Perceived Risk Factors on Emerging-Market Consumers’ Attitude Towards Shopping for Clothes Online

“…Furthermore, product risk was revealed to influence the attitude of South African consumers regarding online shopping (Makhitha & Ngobeni, 2021:7). Siu and Ismail (2022) found perceived risk to affect online purchase intention negatively, while Tham et al (2019) reported a positive impact. Therefore, the following hypotheses were formulated: H 5a : The attitude of consumers in emerging markets regarding online clothing shopping is significantly influenced by their perception of product risk.…”

“…Jiang, Qin, Gao and Gossage (2022) argue that perceived risks operate differently depending on the buying circumstances, which require that different mediation factors be used. It is for this reason that Siu and Ismail (2022) report that trust and subjective norms significantly mediate the effect of perceived risk in online purchase intention. Other studies have reported the need for mediation of perceived risk and online purchase intention.…”

Determinant of Gold Investment Decision in Z Generation: A Study of Planned Behavior and Social Learning Theory

“…The Theory of Planned Behavior (TPB) is a development of the Theory of Reasoned Action (TRA). In addition, TRA and TPB are based on the assumption that humans behave rationally, considering the available information and actions taken (Siu & Ismail, 2022). According to TPB, the intention to conduct a behavior is a direct determinant of the activity.…”

“…Customers do not only use estimates of the prospects of investment instruments but psychological factors have also determined interest, motivation, and selfconcept (Mulyono, Sawir, Surahman, Hendrawati, & Nurhidayati, 2023). According to Tandellin (2010), investment decision indicator is TPB, where humans behave rationally, considering available information (Siu & Ismail, 2022). According to Social Learning Theory, customers who already hold beliefs regarding the factors influencing behavior possesses the capability to effectively engage in financial literacy have control on information concerning other customers, and subscribes to the superiority of a particular product to exhibit a preference in purchase decision.…”