Premium Essay

Perceived Risk and Their Influences on Online Shopping

In: Business and Management

Submitted By neelfearless
Words 4268
Pages 18
PERCEIVED RISK AND THEIR INFLUENCES ON ONLINE SHOPPING

Major Project Report

Submitted for the partial fulfillment of the requirement for the award

Of

Master in Business Administration

Submitted by: Under the Guidence
Kamal Kumar Dr. Vibhuti Tripathi
2012MB35

School of Management Studies
Motilal Nehru National Institute of Technology
Allahabad – 211004

May, 2014
Introduction
Online Shopping
There are many factors that point toward the potential for rapid growth of online shopping in India. In terms of education, India annually produces 2 million college graduates including approximately 200,000 engineers and 300,000 technically qualified graduates. The government of India has been heavily promoting investment in the telecom sector in recent years with the number of telephones increasing from 55 million in 2003 to 621 million in 2010. During the same period, broadband subscribers grew from .2 million to 8.8 million. Penetration of the internet, however, is comparatively lower at 6.9 percent of the population in 2009 compared to the world average of 26.8 percent (Internet World Stats, 2010), pointing to growth potential in the Indian market. Electronic payment in India is also steadily increasing thanks to a large young population with growing disposable incomes.
There is evidence that the current economic crisis encourages online shopping as more and more Indian shoppers are motivated to compare prices among retailers (Ravichandran, 2009). Another factor leading to growth in online shopping is the joint initiative between a number of state owned banks and the Indian Railways to passengers to transact ticket purchases online. Online shopping growth also overcomes weaknesses in the country's retail supply chain (Nair, 2006). There is also evidence that online transactions are increasing in the smaller

Similar Documents

Premium Essay

Ffrf

...http://www.ijisr.issr-journals.org/ Influence Factors of Online Shopping Binbin He and Christian Bach Department of Technology Management, University of Bridgeport, Bridgeport, CT 06604, USA Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. ABSTRACT: Perceived risk, Shopping motivations, Experience, Service quality and Trust are five important factors to improve the competitiveness of online shopping. KEYWORDS: Perceived Risk, Shopping Motivations, Experience, Service Quality, Trust. 1 INTRODUCTION This paper wants to research influence factors of online shopping, the advantages and disadvantages of online shopping; and how to improve the competitiveness. The foundation of this paper was based on some factors about if people choose the online shopping. Via analyzed the factors, I will present some suggestion about how to improve the competitiveness. Online shopping had some problems in user-friendliness and aesthetics [1]. Now it is the first evolved of B to C E-commerce [2]. The first factor is Perceived risk. Perceived risk is an important part of online shopping factors. Consumers are worried much about perceived risk. It is a big factor if they choose buy products from online shopping companies or not. Hassan, Perceived risk is an important role, consumers...

Words: 4824 - Pages: 20

Premium Essay

How to Increase Global Consumer Trust in Online Shopping? a Case Study of Amazon.Com

...Abstract Online shopping or e-commerce is developed rapidly and has a gigantic impact in globalization. Many consumers around the world start to trade products or do business using this system. The most crucial factor for consumer who shops online is trust. Grabner-Kraeuter (1989 p.43) states “Trust can serve as mechanism to reduce the complexity of human conduct in situations where people have to cope with uncertainty”. This paper tries to analyze that which method can be use by online merchants to increase their consumer trust. Various action and tools are introduced to increasing customers’ trust and verify the website information. Amazon.com is chosen to be the case study. The reason behind this is the popularity and reliability of the website and it is ranked in the top30 website in the world. Introduction Figure: E-commerce market size from 2004 to 2014 Source: Euromonitor, International Telecommunication Union; A.T. Kearney analysis E-commerce is now widely used and has a huge impact in globalization The graph above shows the upward trend of e-commerce market size which increasing respectively since 2004 and from now on the trend is also estimated to be rising due to the benefits of it. There are significant reasons behind that why majority of people use this method of trading. First of all, consumers can trade goods easier than by traditional shopping. Consumers can obviously gain convenience when they shop online since they can purchase or sell products...

Words: 2265 - Pages: 10

Premium Essay

White Paper-Konzum

...Konzum mobile application-better way of shopping Overview At the present time, where every minute counts, where everyone is running to take care of their obligations, duties, and families there is little time to spare. For lot of people buying groceries is frustrating because it takes a lot of time and energy. Some people say that what bothers them most is the line at the cash register. Unfortunately, from this it could be concluded that buying fresh food and cooking has become a luxury that few of us can have. However, what many of us are aware that, if we shorten the time when we are purchasing our groceries we will have more time for cooking healthy meals. We are now able to buy products through internet or mobile phones. This way of buying is not so much time consuming as traditional way of shopping, but some customers are thinking that online shopping is unsafe and when you order online groceries, they are not so fresh. If more people would buy through internet or mobile phones, they would have more time for their families and friends, and for all different things that are improving standard of living. They would also spend less money due to buying just what they really meant, and they would experience freshness of products. This is why I propose that instead of old way of shopping we use the new Konzum mobile application, which saves time and energy. This application is improved way for shopping online. It offers wide information about products, special offers...

Words: 1682 - Pages: 7

Premium Essay

Factors Affecting Students' Online Shopping Attitude and Purchase Intention in Ho Chi Minh City

...FACTORS AFFECTING STUDENTS' ONLINE SHOPPING ATTITUDE AND PURCHASE INTENTION IN HO CHI MINH CITY In Partial Fulfillment of the Requirements of the Degree of BACHELOR OF ARTS in BUSINESS ADMINISTRATION Ho Chi Minh City, Vietnam 2014 Group members: Student Number 1. 2. 3. 4. 5. Name ID Student Name 1. 2. 3. 4. 5. Responsibility in Assignment Participation % * Signatures: a. ____________________________________ b. ____________________________________ c. ____________________________________ Date Submitted: _________________________ TABLE OF CONTENTS CHAPTER I: INTRODUCTION I. II. III. BACKGROUND RATIONALE RESEARCH OBJECTIVE CHAPTER II: LITERATURE REVIEW I. II. III. IV. V. INTRODUCTION REVIEW OF RELATED THEORETICAL STUDY INFLUENCE OF INTERNET ONLINE ON CUSTOMER FACTOR AFFECTING ADOPTATION OF ONLINE SHOPPING CONTRIBUTION OF STUDY CHAPTER III: METHODOLOGY I. II. III. IV. RESEARCH PROCESS RESEARCH STUDY TARGET SAMPLE DATA COLECTION Chapter 1: INTRODUCTION I. Background of Research Nowadays, with the rapid development of Internet technology, online shopping is becoming common and even inevitable among people in different age. Consumers choose online shopping which is another shopping channel that is more convenient and express than the traditional shopping pattern, and these also attracts more and more people sell products online, from chain store to small individual business. Due to the increasing amount of online sellers, the competition...

Words: 3721 - Pages: 15

Premium Essay

Attitudes Towards Online Shopping

...International Journal of E-Business Development (IJED) Attitudes toward Online Shopping: A Comparison of Online Consumers in China and the US * Department of Marketing, Howard University, 2600 6th Street, NW, Washington, DC 20059, USA Department of Marketing, The George Washington University, Funger 301D, 2201 G Street, NW, Washington DC, 20052, USA ^ Department of Marketing, Towson University, Stephens Hall 123, 8000 York Road, Towson, MD 21252, USA 1 gong.gw@gmail.com; 2maddox@gwu.edu; 3rstump@towson.edu market, one that is striving to transform its economy from being manufacturing-based to technology-based. The Chinese government has attached great importance to e-tailing in spurring economic growth and recently has released a series of policies to regularize and guide Internet and e-tailing development (6). Furthermore, China has overtaken Japan as the world's second-largest economy and is predicted to replace the US as the world's top economy in roughly a decade (12). Collectively, all of these factors bode well for an improving etailing environment in China. The focus of this study is to examine whether online consumers in China and the US share similar attitudes with regard to online shopping. While there is a wealth of research focusing on online shopping behaviour in Western countries, relatively little research has compared consumer attitudes toward online shopping across nations. Reflecting the call by Van Slyke, Belanger and Sridhar (13) for more cross-cultural...

Words: 8805 - Pages: 36

Premium Essay

What Are the Most Important Factors That Influence Customer Satisfaction When Buying Online?

...CONSUMER ACCEPTANCE AND CONTINUANCE OF ONLINE GROUP BUyING WENG MARC LIM Monash University Selangor Darul Ehsan, Malaysia DING HOOI TING Universiti Teknologi Petronas Malaysia ABSTRACT The aim of this study is to establish and examine the significance of a consumer acceptance and continuance model for online group buying through the integration of entertainment gratification and perceived risk with the Technology Acceptance Model. A quantitative study was conducted and data were obtained through a mall-intercept systematic sampling distribution of questionnaires. The results indicate that perceived usefulness, perceived ease of use and perceived risk all have a significant relationship with consumer attitudes, which subsequently has a significant effect on intention to use online group buying sites. While entertainment gratification was found to be insignificant, we reveal some possible reasons for this finding. The implications of the findings and future research directions are also discussed. Keywords: online group buying; consumer acceptance and continuance. INTRODUCTION The rapid growth of information technology (IT), the Internet, and the e-commerce boom have created significant opportunities that are characterized by a lack of spatial boundaries [43]. Dawson [9] suggests that three particular types of IT investment have led retailers to become more profitable: (1) knowledgebased investments provide more creative ways to run enterprises; (2) alliance-based investments...

Words: 7481 - Pages: 30

Premium Essay

Research Paper Marketing

...attitudes and purchase intentions of e-deals", Marketing Intelligence & Planning, Vol. 33 Iss 5 pp. 763 - 783 Permanent link to this document: http://dx.doi.org/10.1108/MIP-05-2014-0081 Downloaded on: 02 February 2016, At: 01:40 (PT) References: this document contains references to 89 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 989 times since 2015* Users who downloaded this article also downloaded: Rodney Graeme Duffett, (2015),"Facebook advertising’s influence on intention-to-purchase and purchase amongst Millennials", Internet Research, Vol. 25 Iss 4 pp. 498-526 http://dx.doi.org/10.1108/ IntR-01-2014-0020 Jacob Weisberg, Dov Te'eni, Limor Arman, (2011),"Past purchase and intention to purchase in ecommerce: The mediation of social presence and trust", Internet Research, Vol. 21 Iss 1 pp. 82-96 http://dx.doi.org/10.1108/10662241111104893 Echo Huang, (2012),"Online experiences and virtual goods purchase intention", Internet Research, Vol. 22 Iss 3 pp. 252-274 http://dx.doi.org/10.1108/10662241211235644 Access to this document was granted through an Emerald subscription provided by emeraldsrm:199044 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors...

Words: 11348 - Pages: 46

Free Essay

Online Shopping

...Consumers’ Attitude towards Online Shopping Factors influencing Gotland consumers to shop online Online Shopping Högskolan på Gotland VT2011 Master Thesis in Business Administration Authors: Muhammad Umar Sultan and MD Nasir Uddin Department of Business Administration Supervisors: Per Lind and Mr. Sjostrand Fredrik Abstract In the era of globalization electronic marketing is a great revolution. Over the last decade maximum business organizations are running with technological change. Online shopping or marketing is the use of technology (i.e., computer) for better marketing performance. And retailers are devising strategies to meet the demand of online shoppers; they are busy in studying consumer behavior in the field of online shopping, to see the consumer attitudes towards online shopping. Therefore we have also decided to study consumer’s attitudes towards online shopping and specifically studying the factors influencing consumers to shop online. The population selected for the research is Gotland, and narrowed down to Gotland University students, University cafeteria and Gotland Public library, the sample size selected for this research is 100 and we have used convenience sampling technique. Our findings indicated that among the four factors selected for this research the most attractive and influencing factor for online shoppers in Gotland is Website Design/Features, following convenience the second most influencing and thirdly time saving. Results have also showed...

Words: 14053 - Pages: 57

Premium Essay

Onlie Buying Behaviour

...channel for shopping. Online shopping is the process of buying and selling products, services, and information over computer networks The new wave of consumerism coupled with increasing urbanization and burgeoning middle class with paradigm shifts in their demographic and psychographic dynamics have driven consumers frequently to use retail websites to search for product information and/or make a purchase of products. Presently, Internet retailing in India is growing by 29 per cent CAGR and expected to be 48 per cent and the same is valued as INR 27 billion by 2010 from INR 4 billion in 2005–6 . Web shopping is envisioned as an alternative retail channel for various conspicuous reasons such as speed of transaction, selection and price, convenience, time and space neutrality, choice, fun and enjoyment, easy and comfortably obtained information about products and services(Rowley 1996; Donthu and Garcia 1999). The consumer behaviour in Internet retailing is influenced by a variety of factors comprising consumers’ trust in Internet shop based on perceived size and reputation of its physical store network, perceived privacy and quantum of risk, perceptions of convenience as manifested by the opportunity to shop at home for twenty-four hours in seven days a week (Hofacker 2001). The web store environment and shopping enjoyment mostly influence shoppers’ behavioural intentions (Dailey and Heath 1999). PROBLEM DEFINITION Statement of the problem:- Since online shopping has become...

Words: 641 - Pages: 3

Premium Essay

Air Line

...airline e-ticket and this research. Design/methodology - This research employed an empirical study with the use of the questionnaire survey method, in total, 430 responses were collected through randomly mailing and sent out to consumers who had an experience of purchasing low cost airline e-ticket. Findings - The result showed that marketing efforts, perceive ease of use and perceived usefulness positively affects attitude toward using low cost airline e-ticket and attitude toward using and subjective norm also positive affect behavioral intention to purchase low-cost airline e-ticket. The research showed that perceived usefulness was the most important factor that affect to the behavioral intention to purchase low-cost airline e-ticket. Practical implications - The research showed perceived usefulness was the most important factor that affect to the behavioral intention to purchase low-cost airline e-ticket. . The most influence question in this factor is “using internet for flight reservation increase reservation performance”. Customers think that when they reserve the flight by online booking, they will get the...

Words: 5995 - Pages: 24

Premium Essay

Web-Based Shopping-Consumers' Attitudes Towards Online Shopping in New Zealand

...NO.2, 2005 WEB-BASED SHOPPING: CONSUMERS’ ATTITUDES TOWARDS ONLINE SHOPPING IN NEW ZEALAND Gurvinder S Shergill Massey University Auckland, New Zealand G.S.Shergill@massey.ac.nz Zhaobin Chen Global Integration Ltd Auckland, New Zealand ben_chen46@hotmail.com ABSTRACT The growing use of Internet in New Zealand provides a developing prospect for E-marketers. If E-marketers know the factors affecting online New Zealand buyers’ behaviour, and the relationships between these factors and the type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones, while retaining existent online customers. This paper is part of larger study, and focuses on factors which online New Zealand buyers keep in mind while shopping online. It also investigates how different types of online buyers perceive websites differently. This research found that website design, website reliability/fulfilment, website customer service and website security/privacy are the four dominant factors which influence consumer perceptions of online purchasing. The four types of online New Zealand buyers; i.e., trial, occasional, frequent and regular online buyers; perceived the four website factors differently. These buyers have different evaluations of website design and website reliability/fulfilment but similar evaluations of website security/privacy issues, which implies that security/privacy issues are important to most online buyers. The significant...

Words: 11072 - Pages: 45

Premium Essay

E Ticketing Case Study

... 2012). According to Comscore, the report found stated that low cost airline website have experienced a strong growth visitation from consumer who are continue to search for the best travel deals online. The concept of e-ticketing was first been initiated by Air Asia in 2001 and subsequently be followed by Malaysia Airline in 2005. Airline’s company...

Words: 1983 - Pages: 8

Free Essay

The Influences of Social E-Shopping in Enhancing Young Womens Online Shopping Behaviour

...JOURNAL OF BEHAVIOUR The influences of social e-shopping in enhancing young women’s online shopping behaviour Charles Dennis, Brunel University, UK* Alesia Morgan, UltraSoft Technologies Ltd., UK Len Tiu Wright, Business School, De Montfort University, UK Chanaka Jayawardhena, Loughborough University Business School, UK Abstract The background to this paper is that shoppers, particularly women, are motivated by a variety of different reasons, including socialising and enjoyment. Despite the growth of Internet retailing (e-retailing), these social needs are largely unmet in e-shopping. In the high street, women do most of the shopping but online shopping (e-shopping) tends to be dominated by male shoppers. At the same time, social networking is growing fast and is especially popular amongst young females. The purpose of this paper is to draw on prior research about why people shop in order to explore the concept of social e-shopping, based on combining e-shopping with social networking. We propose that shoppers, particularly young females, will prefer social e-shopping to traditional e-shopping. We carried out a qualitative study for our propositions with a comparison experiment, semistructured questionnaire and focus group, to compare a traditional e-shopping website with a social e-shopping one. The findings reveal that young women prefer social e-shopping sites. Both utilitarian and hedonic young adult female shoppers found social e-shopping enjoyable and useful. However...

Words: 12117 - Pages: 49

Premium Essay

Marketing Research

...ANELINA YASENOVA BAEVA ONLINE CONSUMER BEHAVIOR WEB EXPERIENCE ELEMENTS IN ONLINE CLOTHING MARKET September 2011 MASTER THESIS IN MARKETING ONLINE CONSUMER BEHAVIOR Web Experience Elements in Online Clothing Market Student: Anelina Yasenova Baeva Supervisor: Professor Doctor Arnaldo Fernandes Matos Coelho September, 2011 ONLINE CONSUMER BEHAVIOR – Web Experience Elements in Online Clothing Market Abstract Online shopping in EU has been shown to be a good potential market. Clothing represents a high percent of the individuals shopping. Buying clothes online gives customers the opportunity to find a great variety of products, customers can review a wide selection of products and find special offers with the best deals online. However, the tangible and intangible problems of clothing online shopping still exist and the online store retailers lack the customer knowledge in some extent. Therefore, the intention of the thesis is to explore customer behavior when purchasing clothing online through investigating the factors that can affect online consumer`s attitudes, intention and actual consumers` behavior. The study investigates the main web - experience factors that customer takes into consideration when purchasing clothes online. Yet, the most important online elements are categorized in two main groups: customer - oriented factors and technology - oriented factors. The autor used quantitave research in term of survey to analyze the consumer`s attitutes towards the web...

Words: 30250 - Pages: 121

Premium Essay

Onlinetransaction

...“The Roles of Online Business Transactions to Business Management Students of UBLC” A Research Proposal Research Methodology RES1 Presented to Ms. Perla Mendoza In Partial Fulfillment of the Requirements for the Degree Bachelor of Science in Business Administration Major in Business Management March 2014 CHAPTER I RESEARCH PROBLEM This chapter presents the introduction, background of the study, statement of the problem, conceptual framework, scope and delimitation, significance of the study and the definition of terms. 1.1 Introduction As of today, internet has become an integral tool for business. Consumers can now purchase items online without encountering any hassles. They can now negotiate into other transactions like postal services, order forms, paper checks and paying bills with the use of internet. First of all, online transaction is very convenient. It will allow the consumers to pay their bills and make transactions anytime of the day. Online transaction refers to a class of program that facilitates and manages transaction- oriented applications, typically for data entry and retrieval transactions in a number of industries, including banking, airlines, mail order, supermarkets, and manufacturers. One simple example of an online transaction is a credit card purchase of an e-book. Unlike traditional mail orders involving paper checks, order forms, postal services, and parcel shippers, someone ordering an e-book receives the goods...

Words: 2729 - Pages: 11