Examining the Effects of Perceived Risk on Consumers’ Online Purchase Intention in Klang Valley

Abstract

This study examined the relationship between perceived risk and online purchase intention, including the roles of trust and subjective norms as a mediator and moderator in the relationship. A survey method was used to collect data and the hypotheses were tested using quantitative analysis. 250 respondents completed the online survey, and the results were evaluated using IBM SPSS Statistics 26 and SmartPLS 3.3.3. Based on the findings, perceived risk was found to negatively affect online purchase intention and trust, while trust was positively associated with online purchase intention and significantly mediated the relationship between perceived risk and online purchase intention. Subjective norms were also found to moderate the relationship between perceived risk and online purchase intention. Thus, when the level of subjective norm is low, the relationship between perceived risk and online purchase intention becomes stronger. This study would be beneficial to the online vendors involved in e-commerce activities. Since many online vendors are still facing certain risks in their online businesses that would consequently affect their transactions and performance, they can use the insights gained from the findings of this study to have a better understanding of consumers and provide effective marketing strategies to enhance trust and reduce risks.