Internet Shopping: How the Consumer Purchase Behaviour is Impacted by Risk Perception

Abstract

Online shopping is popular nowadays because consumers feel comfortable purchasing products from their home or office. One of the major reasons for the consumers internet-shopping excitement is when the peak season arrives; they are not required to wait in long queues in a physical store to purchase product and services since the consumer can directly purchase the product through online facilities. With technology advancement, past scholars have identified what consumers consider to be risk, their primary concern in the decision-making process when purchasing through internet shopping as in shopping online. The relationship between consumer risk perceptions and internet shopping intentions is not widely explored, particularly in the context of Malaysia, but current studies have suggested that there is a close link between them. This study aims to study the influence of consumer risk perception towards internet-shopping purchase behaviour to purchase products and services in Malaysia. A total of 138 valid responses from the samples have been obtained. The convenience sampling technique has been adapted for the young consumer in this study. The data collection instrument is a questionnaire that adopts a self-administered distribution technique. Structural Equation Model Partial Least Square (SEM-PLS) version 3.0 has been used to analyse the data. The findings of Partial Least Square have confirmed model fitness in the studied population. Similarly, the findings from path analysis have found that consumer risk perception of functional risk has influenced their internet shopping intention in purchasing the product and services.