Role of Web in an Online Setting: Consumers Perceived Risk Toward Online Purchase Intention

Abstract

Consumer trust plays an important role in any type of business deal specifically in an online setting. Though, there are hypothetical reasons to assume that the perceived risk acts as a fence to consumer trust. Likewise, existing literature suggest that consumers trust is a significant predictor of purchase intention. Therefore, this study aims at investigating the role of consumer trust in an online setting in the relationships among components of perceived risk (such as performance risk, online payment, and delivery risk) and purchase intention. Structural equation modeling (SEM) is used to test the hypothetical relationship in this context. While probing the total effect, the findings shown that performance, online payment, and delivery risks have a significant negative effect on purchase intention. This research also accomplishes that efforts, made by an online store, to diminish certain types of risk will first increase consumer trust, and then finally, increases consumers intention to purchase online. The managerial implications of the outcomes are also discussed.

How do Consumption Values Influence Online Purchase Intention among School Leavers in Malaysia?

“…Furthermore, it was found that product category (Dai et al, 2014), perceived enjoyment (Ramayah & Ignatius, 2005), and users' innovativeness (San Martín & Herrero, 2012) play an influential role in explaining online purchase intentions. In another study, Javed et al (2015) concluded that efforts by an online store to reduce particular risks will primarily enhance consumer trust, and eventually lead to intensifying consumers' online purchase intentions. The discussion above gives a brief overview of the previous literature that has revealed predictors of online purchase intention.…”

“…The emergence of online shopping triggered by information technology (IT) has been revolutionary in the context of a global market setting (Sin, Nor, & Al-Agaga, 2012). In fact, online shopping has prompted the growth of internet-based commerce around the globe as it is convenient and appropriate for consumers (Javed, Nazam, Ahmad, Nadeem, & Qadeer, 2015). Additionally, the acceptance of Web 2.0 has opened the door to building a new world of collaboration and communication.…”