Quest Journals
Journal of Research in Business and Management
Volume 9 ~ Issue 9 (2021) pp: 01-10
ISSN(Online):2347-3002
www.questjournals.org
*Corresponding Author: Okoye, Kingsley Ugochukwu 1 | Page
Research Paper
Perceived risk and online purchase intention for shopping
goods: Evidence from an emerging country context
Okoye, Kingsley Ugochukwu
Department of Marketing
Nnamdi Azikiwe University, Awka, Anambra State
Ojiaku, Obinna Christian*
Department of Marketing
Nnamdi Azikiwe University, Awka, Anambra State
Ezenyilmba, Emmanuel U
Department of Marketing
Nnamdi Azikiwe University, Awka, Anambra State
ABSTRACT
Despite the growth of online shopping and the increased reliance on the internet for communication and
business globally. Consumers are often wary of its inherent risk and sometimes avoid using the channel. This
study examines this perception of risk on consumers’ purchase intentions f or shopping goods. In particular the
study investigates the effects of product risk, security risk, delivery risk, privacy risk, and time risk on purchase
intentions for shopping goods.A survey research design was used to collect data from a cross-section of 200
young consumers conveniently selected online. Five hypotheses were formulated and tested using multiple
regression analysis via SPSS version 16. The result showed that product risks, privacy risk, and delivery risk
negatively affects purchase intention while delivery and time risk were non-significant at 0.05 level of
significant. The effect of product risk was strongest. The study concluded that there is a perceive risks which
manifest in the forms of product, privacy, and delivery risk affect consumers’ online purchase intention
negatively.The result implies that marketers should device strategies to tangibilize the consumers’ product
browsing experience by using advanced technologies such as Virtual or Augmented Reality, zooming features,
and consumer reviews. Also they should take measure to safeguard customers’ information and activities online
such as using multiple steps verification, encryption, and secured online environment.
KEYWORDS: online shopping, perceive risk, purchase intention, product risk, Nigeria
Received 21 August, 2021; Revised: 03 September, 2021; Accepted 05September, 2021 © The
author(s) 2021. Published with open access at www.questjournals.org
I. INTRODUCTION
The advancement in information and communication technology and the unprecedented rise in the
number, uses, and functions of social media has increased consumers’ confidence in online shopping (Gupta,
South, Su, & Walter, 2004). The increased used and reliance of the internet for communication and business
globally has made online shopping is a viable preference to consumers (Ariffin, Mohan, & Goh, 2018).
According to Statista, retail e-commerce sales worldwide amounted to 3.53 trillion dollars in 2019 and is
projected to reach 6.54 trillion dollars in 2022 (Statista, 2021). Research showed that consumers adopt online
shopping behaviours due to convenience, price and product comparison, customer empowerment and a
reduction in search effort (Johnson & Ramirez, 2020), as well as potentially increased choice, and cost savings
(Mahoud, 2013).
Despite this growth, consumers are often wary when shopping online and sometimes avoid using the
channel, abandon their cart, and postpone their online purchase decision. Their concerns stem from ordering for
one thing online and getting something else tothe potential threat of being swindled or defrauded(Gupta et al.,
2004). They also fear the potential loss of delivery i.e.,the possibility of goods being lost on transit, damaged or