Perceived risk factors affecting consumers' online shopping behaviour

Kok Wai Tham, Omkar Dastane, Zainudin Johari, Nurlida Binti Ismail

Research output: Contribution to journalArticleResearchpeer-review

80 Citations (Scopus)

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, hi 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.

Original languageEnglish
Pages (from-to)249-260
Number of pages12
JournalJournal of Asian Finance, Economics and Business
Volume6
Issue number4
DOIs
Publication statusPublished - Nov 2019
Externally publishedYes

Keywords

  • E-commerce
  • Malaysian consumer
  • Online shopping behaviour
  • Perceived risk

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