Dowling and Staelin (1994) defined risk as a consumerí»s perceptions of the uncertainty and adverse consequences of engaging in an activity. Consumer behavior is motivated to reduce risk. (Bauer, 1960; Taylor, 1974). When consumers intend to buy a product or a service, they often hesitate to make the final decision because they caní»t be sure that all of their buying goals will be accomplished with the purchase (Roselius, 1971). Donthu and Garcia (1999) found that Internet shoppers are more less risk averse than Internet nonshoppers. According to SRI International (1995), about seventy percent of Internet users have the risk-taker personality type. Miyazaki and Fernandez (2001) proposed that the rate of purchasing products online is negatively related to the perceived risk of conducting online purchase. They also suggested that higher level of Internet experience may lead to lower risk perceptions regarding online shopping and fewer specific concerns regarding system security and online retailer fraud yet more concerns regarding online privacy, therefore perceived risk at least partially mediates the impact of Internet experience on online purchase behavior. In this research, the perceived risk is defined as the overall perceived security of transactions in an online environment and it is not related to a single seller.

Based on the previous studies, this study posits that perceived risk for security of transactions is one of factors influencing online purchasing behavior.


Consumers who perceive fewer risks toward online shopping are more likely to make online purchase than more risk-laden consumers.


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