Perceived Risk Factors Affecting Consumers’ Online Shopping Behaviour

The Journal of Asian Finance, Economics and Business Vol.6 No.4 pp.246-260, 2019

13 Pages Posted: 4 Feb 2020

See all articles by Kok Wai

Kok Wai

affiliation not provided to SSRN

Dr Omkar Dastane

Curtin University, Malaysia; UCSI Graduate Business School, UCSI University

Zainudin Johari

FTMS College

Nurlida Binti Ismail

Taylor's University

Date Written: November 30, 2019

Abstract

The study examines the impact of financial risk, convenience risk, non-delivery risk; return policy risk and product risk on online consumer behavior of Malaysian consumers. The research employed a self-administered survey to collect empirical data from 245 Malaysian online shoppers by using convenience sampling. Cronbach alpha was calculated to confirm the reliability of the data and then normality was assessed. Confirmatory Factor Analysis was then conducted to test the model using the goodness-of-fit tests. And finally, structural equation modeling is used to test the hypotheses and draw conclusions. IBM SPSS AMOS version 22.0 was utilized for data analysis. The research indicates that product risk, convenience risk, and return policy risk have a significant and positive impact on online shopping behavior. Financial risk is found to have insignificant and negative effects on consumer behavior. In addition, the non-delivery risk is found to have a significant and negative impact on online shopping behavior. The findings provide a useful model for measuring and managing perceived risk in online shopping which may result in an increase in participation of Malaysian consumers and reduce their cognitive deficiencies in the e-commerce environment. Several managerial implications are discussed along with the scope for future research.

Keywords: Perceived Risk, Online Shopping Behaviour, Malaysian Consumer, E-Commerce

JEL Classification: M31, L86

Suggested Citation

Tham, Kok Wai and Dastane, Omkar and Johari, Zainudin and Ismail, Nurlida Binti, Perceived Risk Factors Affecting Consumers’ Online Shopping Behaviour (November 30, 2019). The Journal of Asian Finance, Economics and Business Vol.6 No.4 pp.246-260, 2019, Available at SSRN: https://ssrn.com/abstract=3498766 or http://dx.doi.org/10.2139/ssrn.3498766

Kok Wai Tham

affiliation not provided to SSRN

Omkar Dastane (Contact Author)

Curtin University, Malaysia ( email )

CDT 250
Sarawak
Miri, Sarawak 98009
Malaysia

HOME PAGE: http://www.curtin.edu.my/

UCSI Graduate Business School, UCSI University ( email )

No. 1, Jalan Menara Gading,
UCSI Heights
Kuala Lumpur, Kuala Lumpur 56000
Malaysia

Zainudin Johari

FTMS College ( email )

3420 Persiaran Semarak Api
Cyber 4
Cyberjaya, Selangor 63000
Malaysia
0166946162 (Phone)
63000 (Fax)

Nurlida Binti Ismail

Taylor's University ( email )

Malaysia

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