Study on Customer's Perceived Risk When Shopping Online

Consumers are making purchases daily. There are a number of occasions and reasons prompting people to shop. Special occasions such as birthdays, anniversaries, and holidays all contribute to retail sales. Sustaining one’s daily life through purchase of food, clothing, personal hygiene products and cleaning products also contributes to the economy through commerce. How do most people like to shop? In recent years a new alternative to the traditional brick-and-mortar shopping, online shopping, has increased in popularity. “U.S. e-commerce sales grew from 72 billion U.S. dollars in 2002 to 228 billion U.S. dollars in 2010.” (“Online shopping,” n.d.,

This section of the paper consists of three main parts. First, the research questions that will be addressed, the expected hypotheses and an identification of independent and dependent variables. Second, the supporting literature for the hypotheses is discussed. Third, a conceptualization (definition) and operationalization (measurement) of each independent and dependent variable. Research Questions

Years ago, most people thought that it would remain impossible to click a button and place an order to buy something. Today about “195 million online American consumers” order take-out, book hotels, flights or even grocery shop (Weinstein 1). Many people can pay bills and transfer money to other people through a click of a button on their smartphone. 100,000 online consumers took a survey to reveal that most people preferred online shopping than physical shopping. 73% said it “[was] time saving” and also 58% of those people said they “liked it more because there were no crowds or lines.”(Weinstein 2). Consumers care more about the time used up than going to the store to look and try out the product in person. The internet offers a huge amount of choice and diversity in how people want to do things. But with the majority favoring online shopping, it just shows the laziness of our

Purchase intention was one kind of behavioral intention, and the so-called behavioral intention, indicates our subjective judgment on what we will do in the future. Therefore, purchase intention means one’s possible action intention, which can be used to predict consumer’s purchase behavior. Blackwell et al (2005) claimed that purchase intention is part of behavioral intentions, and behavioral intentions are cognitive plan to perform a definite action or possible behavior on an object. Each concept of behavioral intention represents individual projection or the particular expected behavior to be performed. According to Kotler (2010) purchase intention can define as consumer behavior occurs when consumer stimulated by external factors and

Purchase intention refers to the likeliness of the consumer to make an actual purchase after interacting with the store and brand. Usually higher brand salience and a positive brand attitude result in higher purchase

When people shop online, they are not only consumers but also users of the computer (Demangeot & Broderick,

Consumer buying intention is one of the main feature studied in marketing theory. Marketing managers are interested in capturing the intention so that the prediction to future sales could be projected for existing or new products and services. Further, knowing the intentions help the managers in devising strategies to attract the demand of product, target customer and advertising strategies (Tsiotsou, March

As a ‘fundamental objective ' is about the convenience of online shopping. They are comments, online shopping is easy to find trade from different suppliers at home without having to go to the store. So, it will save you time, then shop in a store, in a retail store you have to go out to a store to another store. In addition to the convenience, customers can shop online without any time limit. You can search the World Wide Web online from Monday to Sunday, is open all year round 24 hours, anytime. It is also convenient for customers to share information through chats or discussion forums, to help others make better buying decisions. This is because the Internet a wide range, customers allow stores around the world, achieving great Internet sales, and comparison shop from the comfort of your home. Online shopping convenience to remove restrictive customers shopping in a store or purchase items they must be based on what is available locally. Online shopping at home than to spend time in places, gathered together more safely. This idea would also apply during peak seasons, such as the lunar New Year, Hari Raya Puasa, Deepavali and avoid large crowds during the Christmas holidays. In this way, it may lose the shopping for outdoor fun. In – store shopping could make social connections than that shopping independently

Purchase intention is constructed from consumers’ attitudes and external factors, where attitudes are multiplex consisting of three elements which are cognitive component or knowledge, affective component or emotion, and conative component motivating consumers toward behaviour or response (Adcock et al., 2001). Purchase intention is a significant factor for predicting consumer behaviour (Fishbein and Ajzen, 1975). Also, purchase it can measure the possibility of consumers’ purchases. The level of consumers’ willingness to buy products directly depends on their purchase intention (Schiffman and Kanuk, 2000). Thus, it is an important concept in marketing. Khan et al. (2012) stated that consumers consider many different criteria when they would like to buy products, such as price, quality, product features, brand and convenience. According to previous research, it is found that purchase intention has many different definitions.

This chapter discuss the literature related with consumer perception influence online shopping intention. discuss on the study that are done by previous research of other research that related to the study. This study combines consumers perception that other researchers have done that will influence the online shopping intention.

Chandrradevi, n.d., ‘Online shopping vs. Traditional Shopping why customers prefer one click shopping’, viewed 22 December 2012, < http://www.articlesalley.com/article.detail.php/93017/159/Book-Reviews/Shopping-and-Product Reviews/21/Online_Shopping_vs._Traditional_Shopping_Why_Customers_Prefer_One_Click_Shopping>

Conscientious shoppers: Described as self-organized, financially efficient, and prepared for the future (Huang and Yang, 2010, p. 675).

Intention to buy may be referred as a reflection of real purchase behavior [41]. The greater the purchase intention is, the greater a consumer’s desire to buy a product or service, it occurs when the consumers perceive product preference in the stage between making purchase evaluation and the actual purchase behavior [41]. Purchase intention is stimulated by external factors of decision-making, personal characteristics, consumer previous experience and customers’ preferences by experience [41].

In this chapter, explains the relevant theories for the research. On the other hand, investigate the effects of how the independent variables affect the dependent variable. In addition, this chapter also includes a proposed conceptual framework, theoretical models and hypothesis development.

Hereinafter, the prima facie list of dependent, independent and control variables will be presented, along with the proposed methods of data analysis.