Consumers who are contemplating about purchasing online perceive some level of risk like those who are intending to purchase from physical stores but there some risk types which are unique to online shopping. Risk of losing personal and private information and that of transnational security could be experienced by online shoppers to varying degree. The incremental use of online platforms and intermediaries by businesses for selling their products and services mandates a better understanding of consumers’ perception towards risk when shopping online.
Trusting an online entity or an E-commerce website is a prerequisite for customers who are intending to purchase online. Due to the lack of tri-ability because of the intangibility associated with online shopping, it is more difficult to covey cues of quality to consumers who are not able to touch and feel a product and should only rely on the information provided by the seller in the form of image or text. Moreover risk of losing credit card information and other personal data during an online transaction could still be highly scary for many consumers to an extent which hinders them from any online transaction. Risk of doing a transaction online could even change a consumer’s mind at the middle of purchase process when the seller is almost sure that its product would be sold in a few seconds as it is already been added to the basket and just a few more clicks from the buyer are needed to finalize the purchase. What happens in consumers’ mind in terms of risk perception and what online retailers or businesses with online presence should do to deal with that risk is something we would address in our next post (Kim & Byramjee 2014)
Kim, S, & Byramjee, F 2014, ‘Effects of Risks on Online Consumers’ Purchasing Behavior: Are They Risk-Averse or Risk-Taking?’, Journal Of Applied Business Research, 30, 1, pp. 161-171, EconLit, EBSCOhost.