Consumer Perceptions of Privacy and Security Risks for Online Shopping

This paper explores risk perceptions among consumers of varying levels of Internet experience and how these perceptions relate to online shopping activity, and investigates the relationships among Internet experience levels, risk perceptions, and online purchasing rates.

Abstract

Government and industry organizations have declared information privacy and security to be major obstacles in the development of consumer‐related e‐commerce. Risk perceptions regarding Internet privacy and security have been identified as issues for both new and experienced users of Internet technology. This paper explores risk perceptions among consumers of varying levels of Internet experience and how these perceptions relate to online shopping activity. Findings provide evidence of hypothesized relationships among consumers’ levels of Internet experience, the use of alternate remote purchasing methods (such as telephone and mail‐order shopping), the perceived risks of online shopping, and online purchasing activity. Implications for online commerce and consumer welfare are discussed.