On risk, convenience, and Internet shopping behavior

This article attempts to determine why certain consumers are drawn to the Internet and why others are not, and why the perception of the risk associated with shopping on the Internet is low or is overshadowed by its relative convenience.

Abstract

The article focuses on consumers' behavior on Internet shopping, convenience and assessing risk associated with it. The article attempts to determine why certain consumers are drawn to the Internet and why others are not. The past century experienced a proliferation of retail formats in the marketplace. However, as a new century begins, these retail formats are being threatened by the emergence of a new kind of store, the online or Internet store. Internet stores allow consumers to shop from the convenience of remote locations. These risks may arise because consumers are concerned about the security of transmitting credit card information over the Internet. Consumers may also be apprehensive about buying something without touching or feeling it and being unable to return it if it fails to meet their approval. The risk associated with shopping on the Internet is low or is overshadowed by its relative convenience. The consumer makes his choices under conditions of uncertainty and therefore maximizes his or her expected benefit. A large number of papers in marketing deal with decision-making under conditions of uncertainty.