Evaluating Online Purchase Intentions among Malaysian Private University Students: The Role of Perceived Risk, and Trust in Online Vendors

Abstract

This study investigates the influence of perceived risk and trust in online vendors on consumers' intentions to purchase online. Data were collected from two hundred students at a private university in Malaysia. The effects of perceived risk and trust in online vendors toward online purchase intention were analyzed using multiple linear regression. Although indicating a weak model for predicting online purchase intentions, the findings indicate that trust in online vendors significantly affects consumers' intention to engage in e-commerce. This study encourages online vendors to understand consumer behaviour better, thus enabling them to develop effective marketing strategies that enhance trust and mitigate risks. By applying these findings, online vendors can improve their business practices, leading to more successful and secure online transactions. Introduction The global spread of Internet technology and the adoption of the Internet of Things have propelled the growth and widespread use of e-commerce platforms, establishing them as the new standard for retail and purchasing activities (Tran, 2021). This shift has revolutionized traditional business models, customer service practices, and retail transactions, while also creating new opportunities for promoting and selling a wide array of products and services online. The success of billion-dollar companies like Amazon, Uber, and Airbnb highlights the inevitable continued advancement of e-commerce. Shopee, on the other hand, has outperformed Amazon and other e-commerce platforms in the Southeast Asian region by offering competitive fees for both buyers and sellers and integrating gamification features into its app, including discounts and vouchers as incentives. In 2023, Shopee achieved significant financial milestones, reporting $9 billion in revenue, marking a 20.6% increase from the previous year. Moreover, Shopee's app was downloaded a staggering 144 million times