Impact of Perceived Risk on Online Purchase Intention for Home Appliances: With Special Reference to Western Province Sri Lanka

Abstract

This study aims to analyze how perceived risk: specifically, financial risk, product risk, convenient risk, psychological risk and social risk impact on customers’ online purchase intention for home appliances. Based on a review of literature, this study developed conceptual model, and it was tested using data collected through an online survey collected from 384 online shoppers by using convenience sampling method and evaluated through SPSS. The findings demonstrated a negative, significant impact of perceived risk for online purchase intention for home appliances. The results further indicated that financial risk, psychological risk and social risk shows a significant negative impact on online purchase intention for home appliances. The findings contribute to a better understanding of the online customers and development of e-commerce for home appliances in Sri Lanka.