Perceived Risk and Consumer Online Shopping Behavior: An Empirical Study

Abstract

In the retail business, the previous decade has witnessed the beginning of a significant shift in customer behaviour, from shopping in physical stores to purchasing online. In India, the Internet is still seen as a novel channel for connecting customers with shops. Still committed to traditional brick-and-mortar establishments, Indians view internet purchasing as a risky endeavour. In this study, the author sought to identify the characteristics that contribute to the perception of danger associated with online buying. The coefficient of reliability for the 18-item scale was good, and factor analysis yielded six significant factors: product risk, financial performance risk, psychological risk, time risk, delivery capacity risk, and website performance risk.