Perceived Risk, the Internet Shopping Experience and Online Purchasing Behavior

Abstract

This paper develops a research model of the importance of consumers’ perceived risk and the Internet shopping experience in the online purchasing behavior of Internet users. The model was tested using a survey of some 700 New Zealand Internet users. Both the perceived risk and perceived benefits of Internet shopping were found to be significantly associated with the amount and frequency of online purchases made. Loss of social interaction in Internet shopping was associated with reduced online spending. The results of the study suggest that Internet retailing Web sites should include features that enhance customer service and reduce perceived risk.