Influence of Perceived Risk on Consumers’ Online Shopping Behaviour in Nigeria

Abstract

The Internet has become the dynamic global communication medium and is increasingly being used as an innovative and revolutionary tool for marketing and purchase of goods and services (online shopping). Previous studies have explored various factors in different online shopping contexts influencing online shopping behaviour such as demographic and cultural differences, and Internet experience, but no known study has examined the influence of perceived risks on consumers’ online shopping behaviour in Nigeria. The study provides answers to three research questions and tests seven hypotheses. An online survey was conducted using an online questionnaire administered to 411 respondents. The results from the study show that six dimensions of perceived risk (financialrisk, product risk, time risk, psychologicalrisk, privacy risk, and delivery risk) have significant relationship withconsumers’ online shopping behaviour, while socialrisk does not have any significant relationship with online shopping behaviour. The study recommends that retailers should have systems in place to track customers who, postpone, or cancel their decision to buy because this might serve as an indication that certain risks are perceived. It also recommends that retailer shops must combat financial risk and privacy risk of online shopping by providing secure channels not only for monetary transactions but also for other sensitive and proprietary information consumers furnish at the time of transaction.

Keywords: Electronic shopping, Internet, Nigeria, Online shopping, Risk