Abstract:
The present study tends to provide an in-depth knowledge about
the perceived risks associated with the peoples who do their
purchases through internet. The study focused on perceived risks
and analyzed the relative significance of perceived risk dimensions
on intention to shop online. Survey data was collected from 384
online shoppers by using convenience sampling method and 318
usable self-administered online questionnaires were used for
further analysis. Multiple and linear regressions were used to
achieve the research objectives and to test the research
hypotheses. The results of this study were revealed that there is a
significant negative impact of perceived risk (β = -1.069, ρ<0.000)
on online purchase intention. Further it was revealed that there is
significant negative impact of product risk(β = -0.200, ρ<0.000),
security risk(β = -0.438, ρ<0.000), time risk(β = -0.140, ρ<0.000),
and psychological risk (β = -0.206, ρ<0.000) on online purchase
intention respectively while there was no impact of financial (β = -
0.019, ρ>0.607)and social risks (β = -0.014, ρ>0.743)on online
purchase intention. This in-depth knowledge about online
shoppers’ perceived risk on intention to shop online directly
affects the online shopping performances for achieving a better ecommerce market in Sri Lanka. This research will add practical
implications for online retailers on designing their product
information, security policies, safety and privacy mechanisms and
selecting shipping service providers.
