The effect of perceived risk on online shopping for fashion on facebook in Ho Chi Minh city
Abstract
Consumers’ perceived risk has been considered as a fundamental concern of
decision making process during online shopping, particularly on Facebook. For the
purpose of this study, perceived risk is defined as the potential for loss in pursuing a
desired outcome from online shopping. The study aimed to examine the effect of
perceived risks (financial risk, product risk, time risk, delivery risk, and information
security risk) on Facebook online shopping for fashion behavior in Ho Chi Minh City. To
investigate the hypotheses of the research, data was collected from Facebook online
shopping users; a survey was conducted with a sample size of 301 Facebook online
shoppers among consumers who previously purchased online on Facebook, methodology
was done using SPSS 20. The study revealed that financial risk, product risk, delivery
risk, social risk and information security risk negatively affect online shopping behavior.
The results also showed that the other dimension, perceived time risk, have no effect on
online shopping for fashion on Facebook. The study has an important managerial
implication; it provides marketers with the importance of consumers risk perception in
order to adopt adequate risk-reduction strategies in the internet shopping environment.