The role of perceived risk on purchase intention in internet shopping

Abstract

The growth of internet marketing encourages marketing researchers to look at how traditional consumer behaviour theories and models apply in the internet context. The purpose of this study was to investigate the nature and scope of consumers' perceived risk in internet purchasing based on traditional consumer behaviour research methodologies. Using a national sample of internet purchasers in USA, the results of the study supported the generalisation that the relationship between risk and purchase that has been found in catalogue and in-store retailing also holds to internet retailing. Risk is detrimental to the internet purchase decision. Consumers perceive more convenience risk, monetary risk, functional risk, and physical risk than social risk or psychological risk in purchasing on the internet. Positive purchase experience that reduces perceived risk increases the probability of purchase on the internet.