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Vietnamese consumers’ perception of risks in online shopping

In Vietnam, online shopping is still in its early stages and consumers are reluctant to use the Internet for their shopping because of some barriers which have not yet clearly defined. The study examines four main online perceived risks - performance risk, financial risk, time risk and privacy risk - to see how they affect consumer’s attitude and online purchase intention. | JED No.213 July 2012 | 99 Vietnamese Consumers’ Perception of Risks in Online Shopping HOÀNG THỊ PHƯƠNG THẢO Doctor of Philosophy, University of Economics, Hochiminh City E-mail: thaohtp@ueh.edu.vn NGUYỄN THỊ THANH LÊ MBA, CFVG programs ABSTRACT In Vietnam, online shopping is still in its early stages and consumers are reluctant to use the Internet for their shopping because of some barriers which have not yet clearly defined. The study examines four main online perceived risks - performance risk, financial risk, time risk and privacy risk - to see how they affect consumer’s attitude and online purchase intention. The overall perceived risks negatively affect consumer’s attitude toward online shopping. Whenever consumers have a positive attitude towards online shopping they will plan to buy online. Based on the findings, some recommendations to Vietnam online companies and individuals are made for their improvement in consumers’ perceived risk reducing solutions. Keywords: perceived risk, online shopping attitude, purchase intention 99 Phaùt trieån kinh teá – Thaùng Taùm naêm 2011 100 | Hoàng Thị Phương Thảo & Nguyễn Thị Thanh Lê Vietnamese Consumers‟ Perception of Risks 1. INTRODUCTION The new technology innovation of the Internet has set up a new and obvious trend of online shopping or e-commerce business model in the world with several advantages over conventional ones. While it was well accepted in developed countries and consumers have benefited from it, in Vietnam e-commerce has just begun and consumers are reluctant to use it for their shopping because of some barriers, which have not yet clearly defined in previous researches particularly for Vietnamese business environment. Many researchers have discussed online consumer behavior theory and made empirical studies, and they found that there are many factors affecting online purchase intention and behavior. Among these, perceived risk is studied as a negative factor to the intention and actual action