As discussed above, perceived risk is an important factor in online transactions. It is
critical in physical markets in determining consumers’ purchase behavior through
influencing the evaluation of product value (Sweeney et al., 1999). It also has impact on
the consumers’ risk relief behavior, for example, the purchase of warranties and
insurance. In the context of online trading, perceived risk plays a more important role
since online markets are risky inherently due to the physical separation of traders.
Perceived risk has more significant effect on traders’ activities