Perceived Risk Factors Affecting Consumers’ Online Shopping Behaviour

Abstract

The study examines the impact of financial risk, convenience risk, non-delivery risk; return policy risk and product risk on online consumer behavior of Malaysian consumers. The research employed a self-administered survey to collect empirical data from 245 Malaysian online shoppers by using convenience sampling. Cronbach alpha was calculated to confirm the reliability of the data and then normality was assessed. Confirmatory Factor Analysis was then conducted to test the model using the goodness-of-fit tests. And finally, structural equation modeling is used to test the hypotheses and draw conclusions. IBM SPSS AMOS version 22.0 was utilized for data analysis. The research indicates that product risk, convenience risk, and return policy risk have a significant and positive impact on online shopping behavior. Financial risk is found to have insignificant and negative effects on consumer behavior. In addition, the non-delivery risk is found to have a significant and negative impact on online shopping behavior. The findings provide a useful model for measuring and managing perceived risk in online shopping which may result in an increase in participation of Malaysian consumers and reduce their cognitive deficiencies in the e-commerce environment. Several managerial implications are discussed along with the scope for future research.

Fluctuating Attitudes and Behaviors of Customers toward Online Shopping in Times of Emergency: The Case of Kuwait during the COVID-19 Pandemic

“…They infer that consumer acceptance, loyalty, and trust in the policy of the seller are essential to online shopping practices (Masoud 2013). Wai et al (2019) show that including a clear return policy has a strong effect on increasing sales (for the provider). This is because a feasible return policy provides customers with motivation, confidence, and comfort that the product they purchased can be returned if it does not satisfy their needs (Dailey and € Ulk€ u 2018).…”

“…Non-delivery risk Wai et al (2019) examine the psychological and marketing factors that affect consumers' buying behavior. They infer that consumer acceptance, loyalty, and trust in the policy of the seller are essential to online shopping practices (Masoud 2013).…”

“…The researcher prepared a questionnaire based on items used in previous research studies in order to ensure that the questionnaire used in this study is reliable and valid. In total, 32 items that reflect the following variables were considered: financial risk (Swinyard and Smith 2003;Forsythe et al 2006), product risk (Swinyard and Smith 2003;Forsythe et al 2006), convenience risk (Ariff et al 2014;Bhatti, Saad, and Gbadebo 2018), non-delivery risk (Masoud 2013;Wai et al 2019), susceptibility risk (Abdulkareem et al 2020;Von Ah et al 2004), severity risk (Casanova et al 2020), attitude (Azer and Alexander 2020; Al-Debei, Akroush, and Ashouri 2015), and online behavior (Elwalda, L€ u, and Ali 2016;Floh, Koller, and Zauner 2013). A five-point Likert scale ranging from strongly agree (1) to strongly disagree (2) was used to measure the items in the questionnaire.…”

Peran Sensitivitas Harga dalam Memoderasi Minat Pembelian

“…Manajemen umumnya menggunakan minat pembelian sebagai wahana untuk memprediksi penjualan serta mengembangkan strategi promosi. Minat pembelian online berkaitan erat dengan perilaku konsumen (Dabrynin & Zhang, 2019;Singhal et al, 2019), persepsi dan sikap yang digunakan untuk memprediksi proses pembelian (Rosillo-Díaz et al, 2019;Tham et al, 2019). Tjiptono & Diana (2020) menegaskan bahwa dalam proses keputusan pembelian banyak factor yang perlu diperhatikan seperti factor personal, factor situasional, factor fisik dan sosial serta factor disposisional konsumen.…”

Online Shopping in Bangladesh: Exploring the Factors Influencing Customers’ Decision During the Coronavirus Outbreak

“…According to Tham, Dastane, Johari, and Ismail (2019), online business is a popular form of business customers who are highly motivated such kinds of business. The aim of the study is to scrutinize the influence of financial risk, convenience risk, non-delivery risk, return policy risk, and product risk on online customer decision of Malaysian customers.…”