Mitigating Risk in E-Shopping: a Structural Modeling Approach
Total Page：16
File Type：pdf, Size：1020Kb
INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 02, FEBRUARY 2020 ISSN 2277-8616 Mitigating Risk In E-Shopping: A Structural Modeling Approach Sanjeev K. Sharma, Pooja Chopra Abstract : The aim of this study is to formulate and test the empirical model to discover the association between various constructs of perceived risk and e-shopping intentions. A structured questionnaire was framed to collect data from four major metropolitan cities of India, namely Delhi, Kolkata, Bengaluru and Mumbai. Data was analyzed using descriptive statistics and structural equation modeling approach. The results revealed that perceived risk had a significant impact on e-shopping intentions. Accordingly, e-tailers are suggested to consider customer’s risk while designing their business strategies. Risk mitigating strategies are recommended for gaining consumers’ confidence and increasing e-shopping intentions to enhance their success in e-tailing business as reluctance to do so might lead to loss in business. Key Words : Association, Consumers’ Confidence, e-shopping Intentions, e-tailing, Perceived Risk, Risk Mitigating Strategies, Structural Equation Modeling. —————————— —————————— 1 INTRODUCTION Indian e-commerce trade has shown growth trajectory and is Technology based innovations have opened new vistas as a forecasted to surpass US to become the second largest e- paradigm shift is taking place in the retail industry landscape. commerce market across the globe by 2034 [7]. It is projected Retailers are embracing the digital technologies with open that by 2026, the basic norm followed by millennials to surf arms. Digitally influenced shopping has revamped the way online shopping site would be replaced by round-the-clock business is done and is fast gearing up to spur the demand for accessibility and quick turnaround time [8]. Millenniums, goods sold online. Conventional brick and mortar outlets are irrespective of their demographics, are adopting internet to orchestrating to become brick and click stores to offer keep pace with latest trends and fads through e-shopping [9]. merchandise that cater to ever increasing demands of Internet has dramatically revolutionized the horizons of both consumers [1]. Through omnichannel presence, retailers try to consumers and marketers in terms of acquiring, processing harmonize the touch points propelling a seamless buying and disseminating the information [10]. Online sites are no experience [2]. e-shopping is one of the power house driven longer solely confined to retail giants like Shoppers Stop, by modern technology to heighten the consumer’s interest and Lifestyle, Landmark, etc. but eventually small retailers too are participation. It has revolutionized the way shopping is done inching forward to explore the vast reservoir through online due to cheaper data rates, increased mobile phone medium for increasing their visibility and reach among masses penetration, improved logistics, comfortable payment [11]. e-Shopping is a big respite to shopper who don’t like to mechanism and is destined to increase manifold. A platform queue up in long checkout lines, roam around in crowed has been developed for mammoth US $1.9 trillion e-shopping shopping malls or get struck up in parking lots [12].It is market to blossom in leaps and bounds across the globe [3]. estimated that mighty leap would be possible owing to huge Technology based inventions like digital advertisements, real- potential for growth in tier-2 and tier-3 cities wherein brick and time logistic statistics, data driven marketing, integrating info mortar model in organized retail is still struggling hard to carve graphics for enriching customer engagement and e-payments their presence. E-marketers are constantly scouting for would ensure exponential growth in this sector [4]. Internet opportunities and harnessing the digital platform to get wave has played a pivotal role in catapulting India’s digital connected and increase their visibility amongst millions of economy to flourish in both length and breadth. The fast- people just at the click of button [13]. However, extant growing e-commerce market is projected to surpass US$24 literature strongly validates the innumerable benefits of billion in 2017 to US $84 by 2021 [5]. However, due to strong internet usage to explore vital information about the product. growth prospects and widespread mushrooming of organized However, contrary to it, only handful of browsers actually retail in India, it is projected to be the third largest consumer makes final purchase as they link uncertainty with products market in the world and touch US$ 1.2 trillion by 2021 [6]. e- bought online [14], due to risk involved in buying online, lack of tailers are purposely targeting avid smart phone users to truth in service provider, stringent return policy. The main aim broaden their reach effectively by pouring huge investments to of this study is to enumerate varied components of risk that boost e-tailing. function as constraints in embracing e-shopping wholeheartedly by the consumers. This research tries to integrate varied aspects of perceived risk, especially in e- ———————————————— tailing along with discussing the implications of perceived risk on intention of consumers to go for e-shopping. • Sanjeev K. Sharma is Professor at University Institute of Applied Management Sciences, Panjab University. Chandigarh. India. E- mail: [email protected] 2. OBJECTIVES OF THE STUDY • Pooja Chopra is ICSSR Post-Doctoral Fellow at University Institute The prime motive of conducting this exploratory research was of Applied Management Sciences, Panjab University, Chandigarh, to gain insights about the nature of consumer’s risk perception India. E-mail: [email protected] linked with e-shopping and the understanding the association ] between perceived risk and e-shopping intention. Effort has been made to recommend strategies to address the consumers’ concerns for mitigating the various risks linked 3626 IJSTR©2020 www.ijstr.org INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 02, FEBRUARY 2020 ISSN 2277-8616 with e-shopping. theoretical evidence, the following hypothesis is postulated: H1: Performance Risk has significant influence on Perceived 3. THEORETICAL FRAMEWORK Risk. The concept of risk perception and risk handling behavior was pioneered by [15] pioneered. He also theorized the imperative 4.2 Time Risk nature of this construct at every stage of the consumer choice According to [31], managing time risk is one of the crucial making behavior. Risk is primarily perceived as the factor which consumers evaluate while doing shopping. Time amalgamation of uncertainty and the possibility of severe loss as a result of a wrong purchasing decision, time invested consequences in terms of losses if not evaluated diligently in searching, learning product usage or return mechanism [16]. [17] proposed that perceived risk is the function of [32]. Internet offers a plethora of facts and figures regarding subjective ambiguity of the outcomes and varies as per the varied products and services. No doubt that internet greatly circumstances that engulf a particular decision. [18] reduced the cost of acquisition of information but consumers highlighted that risk affects a consumer’s propensity to make a spend time on navigating the e-shopping websites, spend time buying decision. This theory has greatly helped in elucidating in learning the usage of e-retailing portals, wait for the the information-searching behavior of the consumers [19] anticipated response along with cognitive effort put forward in thereby helping in reducing the post purchase dissonance search process [33],[34]. Many a times, consumers spend through careful evaluation of risk associated with a particular time in learning how to make payments online or rectifying decision. This theory has aided marketers to step into erroneous transactions. Sometimes web site download speed customer’s shoes and view their apprehensions. However, in is too slow and checkouts take more than expected time, preview of consumer behavior, perceived risk is taken up as a influences online shopping adoption [35]. Despite the fact e- fine blend of uncertainty plus fear of losses associated while shopping is quicker than brick and mortar shopping, still contemplating a particular buying decision [11]. [20] pinpointed customer has to wait for the product to be delivered at home that perceived risk in not the sole explanatory factor to be [36],[37],[38] and sometimes face inconvenience when e- considered while making purchase decisions but at the same tailers do not honor the scheduled time frame. Based on these time its importance cannot be underestimated also. [21] assertions, the following hypothesis is put forward: highlighted that e-shopping is a technology based, non-store H2: Time Risk has significant influence on Perceived Risk. form of business to consumer marketing strategy. However, risk-aversive consumers are often less likely go for e-shopping 4.3 Privacy Risk [22]. Thus, this research paper is centered around the strong The privacy of personal and confidential information is theoretical base formed by theory of risk perception. Effort has fundamental essence in all business activities be it off line [39] been made to explore the risk factors that act as impediments or on-online context [40]. It has gauged significant importance for e-shopping. Strategic risk assessment helps in decision for consumers, businesses, and regulators [41] since