A Study on Perceived Risk & Trust in Online Shopping a Comparative Study Among Various Demographic Groups

Abstract

The online shopping is in very nascent stage in India. In western countries as well as in China it is older than in India. The online shopping is very meagre in size (around 2 percent) as compared to organised retailing (which is at around 8 percent) and the traditional retailing (around 90 percent). What could be the reasons of less penetration of online retailing? As per the review of literature one of the main reasons is perceived risk towards online retailing among the online shoppers in India. Does all the age groups of online shoppers are equally affected by the perceived risks regarding shopping online? If we see another scenario although online shopping is very new to India but since beginning it has reached up to two percent in very less time if we compare it with organised offline retailing. The CAGR of online retailing is around 40 percent as compared to its offline retailing which is around twenty percent. So it is catching very fast. What could be the reasons? As per the review of literature one of the main reasons is trust of the shoppers in online retailing. The online vendors were successfully established their brands in the minds of the online shoppers. The question arises does males and females equally having the trust in online shopping? In current paper the researchers studied perceived risks as well as trusts of the respondents of Pune city in online shopping. The respondents are youth having the age between 18-35 years. The privacy risk, which is one element of perceived risk, has been tested among the three different age groups of the respondents tested through one way anova (analysis of variance) and the result shows that there is a significant difference of privacy risk among all the three respondents group of Pune shoppers. The five elements of trust, found as per review of literature, have been tested among the independent samples of males and females through independent sample t-test. The result shows that there is no difference of trust between the male and female shoppers of Pune.

Keywords: perceived risks, trust online shopping, Pune, online shoppers