Online store image effect on perceived risks towards online purchasing behaviour

The growth of the Internet in Malaysia has been increasing over the years and booming the development of e-commerce in Malaysia. The main activity Malaysians use the Internet is for information searching on products but they end up purchasing the product at a store although e-commerce platform provides many advantages and offers. The objective of this study is to examine the factors influencing purchasing behaviours among Malaysians. In particular, this thesis seeks to develop a framework that represents the factors influencing online purchasing behaviours among Malaysians with regards to perceived risk and online store image. The thesis presents and discusses empirical findings from an online survey of three hundred and thirty three (330) respondents using Smart-PLS Version 3 and SPSS Version 22. The research framework in this study is developed based on Stimuli-Organism-Response (SOR) Model which indicates that online store image and eight dimensions or perceived risk (Financial risk, Product Performance Risk, Time or Convenience Risk, Privacy Risk, Psychological Risk, Delivery Risk, and After-Sale Risk) as the independent variables while online purchasing behaviours is the dependent variable. The respondents involved in this study were selected using non-probability techniques, snowball sampling of those aged 20 to 39 years old. The findings indicate that online store image significantly reduces the financial risk, product performance risk, time and convenient risk, privacy risk, psychology risk, social risk, and after-sale risk. Further, the findings also reveal that only financial risk, psychology risk, social risk, and after sale risk are the identified factors affecting online purchasing behaviours among Malaysians. Therefore, these findings when implemented for online purchase platform providers will affect online store image influenced by certain dimensions of consumers’ perceived risk and lead to online purchasing behaviours. Furthermore, this study provides future research opportunities through specific online purchase platform providers and product categories to carry out a new study.