Analyzing The Risks That The Online Customers Go Through Online Shopping

1051 Words Nov 13th, 2014 5 Pages
Research Paper Review
Even with a considerable amount of online shoppers, online shopping is considered to be risky and confusing for many. The increased percentage in abandonment of online transactions continues to be a concern. The main objective of this research paper is to analyze the risks that the online customers go through online shopping and how they depend on the category of the product. Basically, the product category is differentiated to be two kinds of products- digital and non-digital. Based on previous researches, different researchers consider the perceived risks to be either unidimensional or multifaceted. In this paper, the multifaceted perceived risks [Bauer 1960] are considered.
Perceived risk:
“Perceived risk is defined as the degree to which a person expresses uncertainty about a service or good and particularly, the consequence [Bauer 1960]”. In this research paper, the author considered the three dimensions of perceived risks - Product risk or Performance risk, Financial risk and Privacy risk.
Product risk and privacy risk have been shown to have a high negative impact on online shopping. In a market research, it’s been shown that 75% of online shoppers are concerned about giving their personal and credit card information which comes under privacy risk. This study focuses on how the perceived risks influence two main categories of products- Digital and Non- digital products; Digital products being all the products that can be…
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