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.