Influence of Perceived Risks on Consumers' Online Purchase Behaviour

Abstract

This article describes how online shopping has been emerging as an important part of consumers' life style in almost all developed countries as well as developing countries. People can buy anything at any time and from anywhere through online shopping. Consumers have to deal with risks they perceive about the product, the environment, or the buying process. Beside the vast benefits of online shopping, consumers perceive different type of risks involved in online shopping environments. Therefore, consumers have to deal with the risks they perceive in relation to financial risk, product performance risk, convenience risk, security & privacy risk and health risk. These perceived risk factors determine the consumers' purchase behaviour towards online shopping. The purpose of this article is to analyze the dimensions of risk and the perceptions of the consumers in online shopping processes. The findings of the study would help the e-retailers to have a better understanding and to develop strategies to eliminate or reduce risk perceptions of the target consumers.