2. Theoretical Background
2.1. Perceived risks
Shopping has long been regarded as a risky activity as shoppers may be uncertain of a purchase decision and the consequences of a poor decision [Bauer 1960]. In the online shopping context, the level of perceived risk may be magnified due to limited physical access to products and sales personnel [Forsythe and Shi 2003; Park and Stoel 2005], thereby discouraging shoppers from purchasing via the Internet [Alreck and Settle 2002; Forsythe & Shi 2003; Garbarino and Strahilevitz 2004]. Yet, there is a lack of consensus regarding the identification of and relative impact of dimensions of perceived risk among studies regarding online shopping. Although there are different views regarding the conceptualization of perceived risk (i.e., two components with subdimensions vs. unidimensional concept), the present study follows Bauer’s [1960] perspective by recognizing multiple dimensions of perceived risk associated with online shopping.
Results of previous studies demonstrate little consensus with respect to the relative strength of the various types of risk on purchase intentions. Bhatnagar and Ghose [2004] argued that product risk has the most significant negative impact on shoppers’ online purchase intentions. However, Eggert [2006] found that compared to product risk, perceptions of privacy risk have greater impact on willingness to purchase on the Internet. To identify the most relevant risk dimension(s) that affects online shopping, researchers have turned to perceived risk dimensions identified in the traditional brick-and-mortar context. Among all relevant risk dimensions associated with shopping