Product Risks 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
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According to Forsythe and Shi (2003); Bhatnager et al. (2000); DelVecchio and Smith (2005); Aqueveque (2006) stated that financial risk is a powerful predictor variable to decide the intention of customer toward the online purchase, looking for the information via internet and frequency of customer involve in the online purchase. Most of the consumers will suffer high financial risk when their products are damaged during delivery process or the performance of the products does not meet the expectation. The product bought from certain sellers is overpriced compare to other sellers is also one kind of monetary loss (Arslan et al., 2013). According to Dai, et al., (2014), it is very hard for consumers to decide if the price of the product purchase from certain sellers is the lowest compared to the other one for the same product.
Financial risk is high to online shopping due to the possibility of credit card fraud. Most of the online purchase transaction involve the usage of credit card and consumers are required to provide credit card information to the shopping websites. Caterinicchia (2005) explained that more and more consumers are more concern about financial loss during online transaction process. Some consumers are still worried that online transaction does not provide enough security to secure their credit card information (Caterinicchia
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Delay in receiving the products ordered is also considered as time risk. Some of the irresponsible sellers tend to delay in sending the products or the shipping company delayed the delivery process. Time risk also relates to time loss in returning or exchanging the products which do not meet expectation or damaged (Arshad et al., 2015).
According to Aishah et al., (2015) traditional shopping allow consumers to judge the product directly. However, online shopping is more troublesome to consumers as they cannot touch and feel the products to judge them. Consumers have to spend more time to search for the information of the products and go through products feedback in order to judge it (Forsythe et al., 2006). Customers may leave and do not purchase any products from the website if the website does not sell the products that the customer want (Gudigantala, Song & jones,
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