The Impact of Perceived Risk on Online Buying Behavior

Aishah Arshad, Maira Zafar, Iffat Fatima, Shaista Kamal Khan

In this paper, we will learn about online shopping and consumer-shopping behavior related to it. We will learn how two major type of perceived risks i.e environmental and behavioral risk makes an impact upon the online behavior of a consumer. Online shopping potentially allows commercial Web providers to collect much more detailed consumer behavior information than they can from most physical shopping trips. Commercial Web providers can collect not only the same information available in most physical transactions—identity, credit history, employment status, legal status—but such additional information as electronic address, specific history of goods and services searched for and requested,  other Internet sites visited, and contents of the consumer’s data storage device. Secondary use of information captured online can more easily follow individual-level behavior. Highly touted by many Internet marketers is the idea that data specifically linked to a single identifiable person can be used to customize a product or service to a potential customer, in the interest of maximizing the likelihood of consumer acceptance of the offer.