Research on Perceived Risk in Online Shopping - An Empirical Analysis Based on Shanghai University Students

Author: Jing Miao
Publisher:
Publish Date: 2006-04-01
Features: Online shopping, this foot-traffic-free, anytime-anywhere shopping method, has many advantages. However, research has found that many consumers search for information online more than they make purchases. Some scholars attribute consumers' reluctance to shop online to obvious barriers, such as credit card issues, privacy concerns, etc. However, these barriers are discussed little within the framework of consumer behaviorism, and their nature as well as their potential impact on consumers' online shopping behavior is unclear.
"Perceived Risk," or consumers' "subjectively determined expectation of loss," can provide a useful analytical framework for identifying and explaining barriers to online shopping. Since Bauer, a Harvard University scholar, first introduced the concept of "perceived risk" from psychology into consumer behaviorism in 1960, perceived risk has been used in the West to explain traditional shopping behavior, home shopping behavior (such as telephone shopping or mail-order), and shopping risks associated with various media. Mitchell (1999) believes that when making purchase decisions, consumers tend to reduce their perceived risk rather than maximize their perceived value, and perceived risk is a stronger and more powerful explanation for consumer behavior. The renowned marketing expert Kotler (1997) once pointed out that consumers' decisions to change, postpone, or cancel purchases are largely influenced by perceived risk.
Perception is the foundation of consumer psychological activity, and consumer psychology is the premise for studying consumer behavior. The direct indicator of consumer purchase behavior is purchase intention. Perceived risk is a significant determinant of consumer purchase intention. Therefore, researching consumers' perceived risk regarding online shopping is beneficial for deeply grasping the essence of consumer behavior, comprehensively understanding the determinants of consumer purchase behavior, and accurately exploring consumers' online shopping behavior. Research on perceived risk will further deepen and enrich consumer behavior theory. In practice, studying consumers' perceived risk regarding online shopping is beneficial for businesses to truly adopt a consumer-centric approach, improve the efficiency of marketing resource utilization, and attract more people to shop online.
College students are a group with active thinking, a well-structured knowledge base, a sense of innovation, and a willingness to take risks. Researching their perceived risk regarding online shopping can provide certain guidance for studies on other consumer groups. As an international metropolis, Shanghai's college students have broader horizons and a stronger ability to accept new things. Therefore, studying the perceived risk of online shopping among college students in Shanghai as an empirical subject will yield research conclusions with a certain cutting-edge nature. Online shopping, this foot-traffic-free, anytime-anywhere shopping method, has many advantages. However, research has found that many consumers search for information online more than they make purchases. Some scholars attribute consumers' reluctance to shop online to obvious barriers, such as credit card issues, privacy concerns, etc. However, these barriers are discussed little within the framework of consumer behaviorism, and their nature as well as their potential impact on consumers' online shopping behavior is unclear.
"Perceived Risk," or consumers' "subjectively determined expectation of loss," can provide a useful analytical framework for identifying and explaining barriers to online shopping. Since Bauer, a Harvard University scholar, first introduced the concept of "perceived risk" from psychology into consumer behaviorism in 1960, perceived risk has been used in the West to explain traditional shopping behavior, home shopping behavior (such as telephone shopping or mail-order), and shopping risks associated with various media. Mitchell (1999) believes that when making purchase decisions, consumers tend to reduce their perceived risk rather than maximize their perceived value, and perceived risk is a stronger and more powerful explanation for consumer behavior. The renowned marketing expert Kotler (1997) once pointed out that consumers' decisions to change, postpone, or cancel purchases are largely influenced by perceived risk.
Perception is the foundation of consumer psychological activity, and consumer psychology is the premise for studying consumer behavior. The direct indicator of consumer purchase behavior is purchase intention. Perceived risk is a significant determinant of consumer purchase intention. Therefore, researching consumers' perceived risk regarding online shopping is beneficial for deeply grasping the essence of consumer behavior, comprehensively understanding the determinants of consumer purchase behavior, and accurately exploring consumers' online shopping behavior. Research on perceived risk will further deepen and enrich consumer behavior theory. In practice, studying consumers' perceived risk regarding online shopping is beneficial for businesses to truly adopt a consumer-centric approach, improve the efficiency of marketing resource utilization, and attract more people to shop online.
College students are a group with active thinking, a well-structured knowledge base, a sense of innovation, and a willingness to take risks. Researching their perceived risk regarding online shopping can provide certain guidance for studies on other consumer groups. As an international metropolis, Shanghai's college students have broader horizons and a stronger ability to accept new things. Therefore, studying the perceived risk of online shopping among college students in Shanghai as an empirical subject will yield research conclusions with a certain cutting-edge nature.