Summary of base article

1. Gap
The development of online shopping has led to some challenges to consumers, which
comprise security of payment, data protection, the validity and enforceability of e-contract,
insufficient information disclosure, product quality and enforcement of rights. This issue
emerged because many online retailers do not understand the main factors that will contribute
to consumers’ perceived risk. Consumers’ perceived risks will influence consumer attitudes
toward online shopping and purchase behaviors. Studies on consumers’ perceived risks
toward online purchase intentions are still inconclusive. Thus, this paper fills the gap in the
research area.

2. Variables of study
 Consumer online purchase intention
 Consumer perceived risk
 Financial risk
 Security risk
 Time risk
 Psychological risk
 Product risk
 Social risk

3. No. of variables measured from measurement scale

31 items used to measure independent variables to ensure that they fall into the six
components of perceived risk
4. Definition of variables
Online purchase intention
Consumers’ willingness to buy a product or service via internet stores is define das online
purchase intention.
Consumer perceived risk
The larger the expectations of losses are, the higher the degree of risk consumers will
perceive. Laroche et al. (2005) specified perceived risk as the negative insights of the
unpredicted and changeable results from the purchased products.

5. Elements of research design

Purpose of study:
Descriptive and hypothesis testing
Type of investigation:
Correlational study
Extent of researcher interference:
Minimal
Study setting:
Non-contrived
Unit of analysis:
Individuals
Time horizon:
Cross sectional
6. Data collection process
Page 10-11
7. Data collection tool
Electronic questionnaires (page 10)
8. Analysis:
i. Sample characteristics
Majority of them are women (63 per cent) as compared to men (37 per cent) and
most of them are from the age category of 36 years and above
ii. Sample size
A total of 350 respondents participated on an online survey,
iii. Statistical techniques
Cronbach’s alpha and Varimax rotation technique
9. Hypothesis
H1. There is a negative relationship between financial risk and online purchase intention
H2. There is a negative relationship between product risk and online purchase intention
H3. There is a negative relationship between security risk and online purchase intention.
H4. There is a negative relationship between time risk and online purchase intention.
H5. There is a negative relationship between social risk and online purchase intention
H6. There is a negative relationship between psychological risk and online purchase
intention
10.Measurement scale
A Likert scale was used to measure (1 = strongly disagree to 5 = strongly
agree)

11.Result
The results of the factor analysis for the dependent variable (online purchase intention)
indicate that the condition of factor analysis was satisfactorily met. KMO value is 0.61
and the Bartlett’s test of sphericity is significant(p=0.00).Communalities ranged from
0.50 and 0.75. The factor loading ranged from 0.687 to 0.738. The factor explained 52.25
per cent of online purchase intentions
12.Future direction
Future studies may include the moderating effects of profession, personality traits or past
experiences in the model to see how moderating variables may influence the relationship
of both independent variable and dependent variable. The mediating role of trust is also
suggested for future research.
13.On which future direction you would work
The mediating role of trust is suggested for future research.
synopsis

CHAPTER 1

INTRODUCTION

1.1 Introduction of study

Consumers’ perceived risks (independent variable) toward online purchase intention

(dependent variable) has become a crucial issue because it will directly influence consumer
attitudes toward online purchases, and their attitudes will have a significant impact on online
shopping behaviors. Trust acts as a key role in creating fulfilled and expected outcomes in
online transactions (Ling, et al., 2010). Transactions will happen when there are motivation
and trust between seller and buyer. Moreover, trust is a critical element affecting consumer
behavior and it ascertains the success of technologies adopted such as e shopping. As found
in many studies, lack of trust in online transactions and the online vendors is a chief obstacle
in e-shopping [ CITATION KHA16 \l 1033 ]
Trust(Mediating variable) is one of the curial factors for the online shopping around the
world business. The term trust is not considered a shot term issue but as one of the important
and significant long term barrier in the e marketing to make more and more customers and
sellout their products in the market. During the electronic transaction an effective mental
short cut like trust has applied where trust serve as mechanism to reduce complexity of
human conduct in situation where people have to cope with uncertainty. Trusts reduce risk,
increase the level of commitment and satisfaction. Trust makes from the transaction of the
third party to the latter, where the third party plays a significant role in making the
level of trust [ CITATION KHA16 \l 1033 ].
This study will define trust in an e-shopping context as a consumer’s willingness to depend
on another party and be vulnerable to the actions of the other party during the online
shopping process with the expectation that the other party will perform acceptable practices
and will be able to deliver the promised products and services.
1.2 Problem statement

Customers are feeling difficulty in the online shopping because due to lack faith between
businessperson and customers. consumers simply do not trust most web providers enough
engage in relationship exchanges with them.

1.3 Research question

What are the importance of the trust while making online transaction and online purchase
intention of consumer?

1.4 Research objectives

The objective of this study is to explore impact of trust that affect consumers’ attitude
towards online shopping and online shopping intention in Pakistan.

1.5 Significance of study

I. Theoretical significance
This study will enable the organizations that how these barriers can be removed to
increase e selling.
II. Practical significance
It is hoped that the findings can help online retailers to formulate strategies to reduce
risks in the online shopping environment, especially security risks for better e-
commerce.

1.6 Hypothesis

H1: There is a positive relationship between TRUST and consumer’s online purchase
attention

H2: There is a positive relationship between Trust and consumer perceived risk

H3: Trust mediates the relationship between consumer perceived risk and consumers’ online
purchase intention

1.7 Definition of variables

Perceived risk

Perceived risk according to [CITATION Sch10 \l 1033 ]. is the expectation of losses. The larger
the expectations of losses are, the higher the degree of risk consumers will perceive.

 Financial risk
Financial risk is defined as the probability of an internet shopper suffering monetary
loss from a purchase when the product does not perform well or if the product is not
worth the price paid [ CITATION Ari18 \l 1033 ]
 Product risk
The product risk involves a potential loss if the product did not meet the consumer
expectations in terms of product standard and quality
 Security risk
Security risk is defined as a potential loss due to online fraud or hacking, which
exposes the security of an internet transaction or online user [ CITATION Ari18 \l 1033 ]
 Time risk
It refers to the time that consumers take to make a purchase, waiting time for the
products to be delivered at their home and the time that consumers had spent for
browsing product information.[ CITATION Llo10 \l 1033 ]

 Social risk
Social risk refers to the perceived judgment on the product purchased that creates
dissatisfaction among family, friends or communities (Dowling and Staelin, 1994).
 Psychological risk
Psychological risk may also be defined as a consumer’s dissatisfaction in choosing a
poor product or service despite having a huge array of varieties(Ueltschyetal.,2004)

Online purchase intention

Consumers’ willingness to buy a product or service via internet stores is defined as online
purchase intention (Li and Zhang, 2002; Salisbury et al., 2001).
Trust

Cho (2007) defined trust from the business point of view, trust refers to the confidence a
person has in his or her favorable expectations of what other people will do.

Chapter 2

LITERATURE REVIEW

II.1 The review is important to outline the critical findings about online purchase
intention and its determinants in view of the fast-changing pace of digital technology
in marketing toward consumer purchase intentions. The basic aim of this chapter is to
investigate past researches for thorough understanding of the topic. This chapter
covers existing knowledge of various researchers which will provide an insight of
relationship marketing in b to trade fair. This chapter cover independent or dependent
variable of study, it’s also include hypotheses development process, theoretical, and
conceptual model of research.
II.2 Variable of study
Perceived risk is the independent variable, online purchase intention is dependent
variable and trust is mediating variable.
II.2.1 Independent and dependent variable
Online purchase intention
Online purchase intention is the dependent variable in our study, many researcher
explain it in many ways, Consumers willingness to buy a product or service via
internet stores is defined as online purchase intention (Li and Zhang, 2002;
Salisbury et al., 2001). [ CITATION Ari18 \l 1033 ] also defined online purchase
intention as the intention of online shoppers to buy goods and services via the
internet or virtual shopping carts.

Consumer perceived risk

Perceived risk according to Schierz et al. (2010) is the expectation of losses. The
larger the expectations of losses are, the higher the degree of risk consumers will
perceive. Laroche et al. (2005) specified perceived risk as the negative insights of
the unpredicted and changeable results from the purchased products. Meanwhile,
 Ko et al. (2004) defined the concept of perceived risk as the consumers’
perception on changeable and contrary outcomes of buying a product or service.
 Financial risk
Financial risk is defined as the probability of an internet shopper suffering monetary
loss from a purchase when the product does not perform well or if the product is not
worth the price paid (Featherman and Pavlou, 2003)
 Product risk
The product risk involves a potential loss if the product did not meet the consumer
expectations in terms of product standard and quality.
the product risk involves a potential loss if the product did not meet the consumer
expectations in terms of product standard and quality. Product risk denotes the
possibility of product failure to meet the performance of what it was originally
intended for (Zheng et al., 2012).
 Security risk
Security risk is defined as a potential loss due to online fraud or hacking, which
exposes the security of an internet transaction or online user (Soltanpanah et al.,
2012 ).
 Time risk
It refers to the time that consumers take to make a purchase, waiting time for the
products to be delivered at their home and the time that consumers had spent for
browsing product information.
 Social risk
Social risk refers to the perceived judgment on the product purchased that creates
dissatisfaction among family, friends or communities (Dowling and Staelin, 1994).
 Psychological risk
Psychological risk may also be defined as a consumer’s dissatisfaction in choosing a
poor product or service despite having a huge array of varieties(Ueltschyetal.,2004)

II.2.2 Mediating variable

TRUST
[ CITATION Llo10 \l 1033 ] define trust as described trust as the relationship between the trustee
(business) and the trustor (consumer). [ CITATION cho12 \l 1033 ]defined trust from the
business point of view, trust refers to the confidence a person has in his or her favorable
expectations of what other people will do.

II.3 Hypothesis development

The impact of trust on consumer online purchase intention and consumer
pecived risk
With regard to e-commerce, Chong et al. (2003) found the dimensions of
trustworthiness as perceived integrity, perceived benevolence, and perceived
competency. Further, [ CITATION Asi14 \l 1033 ] identified ability, benevolence, and
integrity as three most frequently cited attributes of the trustworthiness of a trustee.
Ability refers to the skills, competencies, and characteristics of trustee; benevolence
is the extent to which a trustee is believed to do good to the trustor; and integrity is
the consistency of the trustee’s past actions and credible communication.
so according to the prior studies we identified that relationship will be positive there
will the element of the trust between online seller and purchaser.

H1: There is a positive relationship between TRUST and consumer’s online purchase
attention

H2: There is a positive relationship between Trust and consumer perceived risk

H3: Trust mediates the relationship between consumer perceived risk and consumers’ online
purchase intention
 II.4 Conceptual model

Time risk

Security risk

Financial risk

Online purchase
Trust
intention
Pshy. risk

social riskk

Product risk
risk
 Chapter 3
Research Methodology
In this section we examined about strategy embraced for information accumulation, systems
which are utilized for performing information examination, which kind of populaces chose
for social affair data, and about measures.

3.2 RESEARCH DESIGN

The present research examines various indicators which lead to intention to trust online
buying of products. Primary data were generated through first-hand information personally
collected from the students through well-structured instrument. The study based on thorough
review of conceptual and empirical literature on purchase intentions. The items under each
dimension covering almost all the predictors of purchase intentions were generated from the
relevant literature. Items pertaining to Integrity focusing on the degree to which online
vendor acts in a consistent, reliable, and honest manner.

3.3 Research methodology

3.3.1 Population of study
This is done to find impact of trust in online purchase by the consumer population of study
mostly are hostel students of KBWH.

3.3.2 Sample and sampling technique

Sample is the representative part of the population. In this study non-probability technique is
used. Sampling is done by collecting data. The samples were selected because they were
easily reachable. The sample size is 30 people.

3.3.3 Data collection method

Survey approach was chosen to gather information directly from students in universities
located in Lahore and online questionnaire distributed containing Likert scale strongly agree
to strongly disagree.

3.3.3.1 Measures
Although there is a considerable body of research into shopping intentions and trust, there is
limited work on services cape and especially so within an e-commerce environment (see
Koernig, 2003). Therefore, in order to gauge these variables in an online environment,
considerable scale development and adaptation was required. The scales used were developed
using conventional psychometric procedures and were based on existing scales as well as
founded on scale development work conducted during pretesting. In summary, our scale
development procedure involved the development of survey instruments containing various
measures of facets of services cape, trust, and purchase intentions; derived largely from
measures of offline perceptions and behavior. founded on scale development work
conducted during pretesting. In summary, our scale development procedure involved the
development of survey instruments containing various measures of facets of services cape,
trust, and purchase intentions; derived largely from measures of offline perceptions and
behavior [ CITATION Llo10 \l 1033 ]