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 have not been explored extensively within the framework of consumer behavior studies, and their nature as well as their potential impact on consumers' online shopping behavior remains unclear.
"Perceived Risk," or consumers' "subjective determination of loss expectations," can provide a useful analytical framework for identifying and explaining barriers to online shopping. Since Bauer, a Harvard scholar, first introduced the concept of "perceived risk" from psychology into consumer behavior studies in 1960, it has been used in the West to explain traditional shopping behavior, home shopping behavior (such as telephone shopping or mail-order shopping), and shopping risks associated with various media. Mitchell (1999) believes that consumers tend to reduce their perceived risk rather than maximize their perceived value when making purchase decisions, and perceived risk is a stronger and more effective explanation for consumer behavior. The renowned marketing expert Kotler (1997) once pointed out that consumers' decisions to change, postpone, or cancel purchases are significantly influenced by perceived risk.
Perception is the foundation of consumer psychological activity, and consumer psychology is the prerequisite for studying consumer behavior. The direct measurement indicator of consumer purchase behavior is purchase intention. Perceived risk is a crucial determinant of consumer purchase intention. Therefore, studying consumers' perceived risk regarding online shopping behavior helps to deeply grasp the essence of consumer behavior, comprehensively understand the determinants of consumer purchase behavior, and accurately explore 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 behavior helps businesses truly adopt a consumer-centric approach, improves the efficiency of marketing resource utilization, and attracts more people to shop online.
College students are a dynamic, well-educated, innovative, and risk-taking consumer group. Research on 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 perspectives 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 conclusions with certain cutting-edge significance. Research on Perceived Risk of Online Shopping—An Empirical Analysis Based on Shanghai College Students 7810986082 Shanghai University of Finance and Economics Press