The Effect of Perceived Risk on Consumer Trust in Online Shopping during COVID-19 Pandemic

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 1

Year of Publication : 2022

Authors : Safrizal, Mahrinasari MS, Dorothy RH Pandjaitan

10.14445/23939125/IJEMS-V9I1P101

How to Cite?

Safrizal, Mahrinasari MS, Dorothy RH Pandjaitan, "The Effect of Perceived Risk on Consumer Trust in Online Shopping during COVID-19 Pandemic," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 1, pp. 1-8, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I1P101

Abstract:

Since the lockdown that was implemented by the government at the beginning of last year, public interest in online shopping has increased significantly. However, there are still many potential consumers who are still doubtful about online shopping, considering that this is a new territory that is not quite familiar yet in the public's eye. Trust is one of the important elements that sellers need to get from consumers, so the online businesses can operate properly. However, to gain consumer trust, there are some perceived risks that may prevent consumers from fully committing to online shopping. This study aims to determine the effect of perceived risk on consumer trust in online shopping. Three proxies are used to measure perceived risk, namely: perceived security, perceived privacy, and perceived physical risks. For this research, samples were collected through 140 respondents who actively use social media in Indonesia with a random sampling technique. Data were obtained from questionnaires distributed during February-March 2020. To analyze the data, regression analysis tests were used. Based on the research results, it is known that Perceived Risk has a significant effect on Trust.

Keywords:

Perceived Risk, Perceived Security, Perceived Privacy, Perceived Physical Risk, Consumer Trust.

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