Online store image effect on perceived risks towards online purchasing behaviour

Abstract

Online consumers have their own risk perception known as perceived risks. If consumers detected a variety of risks with the online purchase, consequently it will decrease the intention to shop online. The purpose of this paper is to examine the relationships between online store image towards perceived risks (financial, product-performance, time, delivery, psychological, privacy, social, and after-sale risks) and the relationship between perceived risks towards online purchasing behaviour. Data collected from 330 respondents who have experience in online purchasing suggested that online store images have influence financial, product-performance, time, psychological, social, and after-sale risks. Surprisingly, online store image has no effect on privacy and delivery risks. Meanwhile, financial, psychological, social and after-sale risks have influence on online purchasing behaviour. In other words, increased risk in product performance, financial, psychological and after-sale risks influence the online purchasing behaviour by reducing the intention to purchase the product. Therefore, online purchase platform providers, online retailers and online marketers should identify the online store image that is capable to reduce consumers’ perceived risks thus leading to a positive purchasing behaviour. Additionally, consumers can gain knowledge about the risks that might be faced during online shopping activities.