The Influence of Consumer’s Perceived Risk on Consumer’s Online Purchase Intention in Indonesia

Abstract

This study aimed to determine the influence of consumer's perceived risk on online purchase intention in Indonesia. In this study, the data was collected using a questionnaire to 130 respondents who shopped online in the last three months in Indonesia. The results of this study indicate that financial risk, product risk, security risk, time risk, and psychological risk have a negative effect on online purchase intention, while social risk does not influence online purchase intention. The implication of this study is that e-commerce companies or online shopping sites should pay attention to these five variables perceived risks such as financial risk, security risk, product risk, psychological risk, as well as time risk in order to increase online purchase intention.