INTERNET SHOPPING: AN EXAMINATION OF CUSTOMER INTENTIONS WITH RESPECT TO RISK AND TRUST

Abstract

In Pakistan, the trend of online shopping is increasing day by day. A branded apparel website of Pakistan “Khaadi” was chosen for the study. The aim of the study was to investigate the internet purchasing behavior of Pakistani female consumers, with the specific emphasis on impact of online risk and trust perceived. An online survey method was used from a well-known website, smartsurvey.com. The sample consisted of 160 respondents and the data were analyzed using Structural Equation Modeling (SEM) in IBM SPSS Statistics 20 and AMOS. The findings presented that the perceived online risk was significantly correlated (r=0.559, P<0.01) with intentions towards online shopping and trust in online vendors was also significantly correlated (r=0.342, P<0.01) with intentions towards online shopping. The study concluded that consumers have a positive intentions towards online branded websites.