Personality Influences Risk Perception in Online Shopping: An Indian Consumer Perspective

Abstract

Online shopping is a preferable alternative mode of shopping in the 21st century. The increase in the rate of online shoppers with increasing frequency of shopping pushes e-retailers to look into the buying pattern along with the possible deviations in the buying style of shoppers and developing economies like India has a potential of expansion. The present study checks the influence of personality traits on the risk perception of online shoppers, which restrict them to shop online or is the reason for the online shopping avoidance behavior. For the same, a structured scale is constructed and response is taken from 312 valid respondents and the stepwise regression technique is applied to deduce the inference over the relation of personality traits and risk perception. Openness, neuroticism, conscientiousness and extraversion personality traits show a varying effect over the risk perception in online shopping. Further, the managerial implication for online retailers is also discussed in depth.