Importance Of Product Risk In Online Shopping

1155 Words5 Pages Product risk
Product risk is one of the perceived risks that will face by consumers during online shopping. Product risk is defined as the possibility that the product bought might face malfunction and the quality is below the expected level (Kim et al., 2008). Usually, if a product’s performance doesn’t meet the required level, the performance of the product is considered as poor (Yeniceri and Akin, 2013). Research done by Teo (2002) stated that there are 40% of the respondents most worry about the loss of financial when they make the online purchase while 25 % of the respondents fear about the performance of the product that they bought will not meet their expectation. The product risk is the reason that consumer chooses not to shop online (Dai et al., 2014).
According to Bhatnagar et al. (2000), product risk will occur due to the sellers do not check the quality of the product before sending the product to the buyer. The consequence of this act will result in the consumers feel unsatisfied with the product bought and they are required to resend back the defected product back to the seller in order to exchange a new one. This will let the consumers feel disappointed and they might be more aware of the product risk when they do the next online shopping. Most of the consumers are the concern of product risk because they are unable to access the product in front of them if they purchase the product via online. Consumers can only depend on the limited information and
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