A Study on Perceived Risk Dimensions and its Impact on Online Shopping behavior amongst Indian Youths

Abstract

From past one and half decades, India has witnessed robust growth in e-commerce activities. Use of internet for shopping purpose is growing at an impressive rate. Rapid changes in customer life styles, technological progress, increase in customer income, raising disposable income of the population, education and awareness level, financial development etc have contributed for the growth of e-commerce in India. India is regarded as ‘Young India’, which comprises of more youngsters or working age population. Half of its 1.3 billion populations is under the age of 25 and a fifth are under the age of 14.  Added to this mobile penetration rate in India, is very high compared to any other countries in the world. This younger generation use internet as a medium of purchase. Increased use of mobile phone and internet has led to unprecedented growth in online shopping. The contact norm between sellers and customers has changed since the extensive adoption of internet.  The ability to measure different dimensions of online shopping would take Indian e-tailers to a great height in maximizing both customer satisfaction and profits. The present study identifies the factors of perceived risk in online shopping behavior of Indian youths. Exploratory Factor Analysis revealed eight factors of perceived risk in online buying. This study would help those, who currently offering or aspiring to offer their products and services, through online channel to consumers as it would ensure designing and enforcement of appropriate marketing and electronic tools to overcome their perceived risk in online shopping. This include assuring delivery of ensured goods and services, making available an easy goods return process, minimizing monetary threats and developing a well secured framework of e-commerce technology for online buying.