International Journal of Information System and Engineering

Vol. 4 (No.2), November, 2016

ISSN: 2289-7615
DOI: 10.24924/ijise/2016.11/v4.iss2/69.81 www.ftms.edu.my/journals/index.php/journals/ijise

This work is licensed under a

Creative Commons Attribution 4.0 International License.

Research Paper

INFLUENCE OF CUSTOMERS PERCEIVED RISK ON ONLINE SHOPPING

INTENTION IN MALAYSIAS APPAREL INDUSTRY

Tolulope Olaide Folarin

tolulope.folarin@student.anglia.ac.uk

Emmanuel Abiodun Ogundare

FTMS College, Malaysia
emmanuel@ftms.edu.my

Abstract

The main purpose of this research is to examine the influence of customers perceived risk on
online shopping intention in Malaysia, specifically on Malaysias apparel industry.To achieve
this purpose, this research deduced its conceptual framework from past researches, using five
independent variables which are; information privacy risk, security risk, delivery risk, financial
risk and quality risk with online shopping intention as the only dependent variable (Almousa,
2011; Masoud, 2013; Dai, Forsythe and Kwon, 2014). The conceptualized framework was used
to develop a multivariate likert-scale questionnaire with a scale of 1 to 5 and the questionnaire
was used to conduct a primary research which solicited responses from 307 customers who
still prefer to shop for apparel in bricks and mortar than shopping online. Thus, convenience
sampling which is a type of non-probability sampling that enables easy selection of the target
audience was employed (Saunders, Lewis and Thornhill, 2009). The data collected was
quantitatively analyzed via SPSS 20.0, the bivariate multiple regression result shows
information privacy risk, financial risk and quality risk have significant influence on online
shopping intention in Malaysias apparel industry, however, security risk and delivery does not
have significant influence on online shopping intention in Malaysias apparel industry.
Conclusively, this research had been able to help businesses to identify the customers
perceived risk that inhibit Malaysia customers from shopping online and it gave
recommendations on how businesses can minimize these risks.

Finally, future research should employ a longitudinal study approach in order to expand the
scope of the research beyond the five variables employed for this study, as such, researcher
should combine both questionnaire and interview and make use of a larger sample size which
will increase the reliability and generalization of the result to the whole Malaysia customers at
large.

Key Terms: Customers perceived risk, influence, online shopping intention, Malaysia apparel industry

1. Introduction

The worlds marketing environment has greatly been impacted by the emergence of internet
which had provided businesses the opportunity to expand and enhance their ability to reach

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customers in different locations, both locally and globally through electronic commerce
(Masoud, 2013). The availability of internet access and rapid possession of computers by
numerous households facilitate product search, product information and extensive acceptance
of ecommerce (Ganguly, Dash and Cyr, 2014).

According to Moore (2008) the Internet is proving to be a great equalizer, giving small firms a
presence comparable to that of the giants in the marketplace. Thus, many businesses operate
Business-to-Consumer (B2C) ecommerce which involves selling products or services to the
finally consumers via internet (Moore, 2008). The benefits of ecommerce which are 24hours
accessibility to products/service, convenience, speedy process, time saving, among others had
increased the usage of online shopping among end users (George, 2012).

According to the research by Leong and Lee (2014) on the percentage of online shopping in
developing countries, it was discovered that online shopping in Philippines had been carried out
by 62% of Filipinos internet users while 61% of Indonesian internet users shop online, 58% of
Thailand and Vietnamese internet users make use of online shopping, however, compared to
these developing countries, online shopping had been carried out in Malaysia by only 47% of
Malaysian Internet users. This percentage of online shopping in Malaysia is relatively low, thus
it brought about the purpose of this study which is to identify and examine the influence of
perceived risk on shopping intention in Malaysia, specifically in Malaysias apparel industry.

This research aims to examine the influence of customers perceived risk on online shopping
intention in Malaysia, specifically on Malaysias apparel industry. To achieve this aim, the
following objectives are proposed:

i. To investigate if information privacy risk influence online shopping intention

ii. To examine if security risk influence online shopping intention
iii. To explore if delivery risk influence online shopping intention
iv. To ascertain if financial risk influence online shopping intention
v. To examine if quality risk influence online shopping intention

Structure of research paper

This paper is subdivided into five sections: section one which is the introduction is discussed
above. Session two reviewed current and relevant literatures as regard the influence of
perceived risk on online shopping intention. Session three focuses on the methodology
employed. Section four quantifies and analyzes participants responses. Finally, section five
draws conclusion, cite implication for practices, gave recommendation and suggest future
research.

2. Literature Review

Perceived risk according to Samadi and Yaghoob-Nejadi (2009) is the subjective belief of an
individual on possible negative consequences from his/her decision. It was also defined by
Schiffman (2007) as the uncertainty customers are liable to encounter if they do not anticipate
the consequences of their purchase decisions. According to Schierz, Schilk and Wirtz (2010)
perceived risk is the expectations of losses, the larger the expectations of losses are, the higher
the degree of risk consumers will perceive. Perceived risk was also defined by Flick (2009) as a
two-dimensional construct comprising the uncertainty involved in a purchase decision and the
consequences of taking an unfavorable action.

Online Shopping intention is defined by Pavlou (2003) as the willingness or intends of

customers to purchase goods and services through the website. It was also defined by Fygenson
and Pavlou (2006) as a state or situation when a customer desires or plans to purchase certain
product or service from an e-shop in future.

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Since Bauer (1960) introduced risk-taking behavior in marketing literature as a possible
measure of consumer attitude towards online purchase, it had captivated the attention of
numerous researchers and many studies had been carried out to examine the influence of
perceived risk on shopping intension. In 2011, a research by Almousa (2011) on 300 Saudi
Arabian customers investigated perceived risk in apparel online shopping by conducting a web-
based survey that measured the perception of customers on the six types of risk connected with
online apparel shopping and their influence on purchase intention. Thus six variables which are
performance risk, financial risk, psychological risk, security risk, time risk and privacy risk were
conceptualized, it was found that time risk and performance risk strongly and negatively
influenced online shopping intention; it was also found that privacy risk and security risk have
negative effects on online shopping intention . This research by Almousa (2011) is a relevant
study as it specified and encapsulated perceived risk in apparel online shopping however, the
reliability and authenticity of the result cannot be ascertained because the research used a non-
probability sampling techniques by conducting a web-based survey which according to
Saunders, Lewis and Thornhill, (2009) cannot be used as a means of generalization to the
population at large.

In 2013, a study by Masoud (2013) investigated the effect of perceived risk on online shopping
intention in Jordan using a sample size of 395 respondents, majorly customers who are online
shoppers, as such, he conceptualized five variables which are; time risk, financial risk,
information security risk, delivery risk and product risk. His study revealed that financial risk,
product risk, information security risk and delivery risk negatively affect online shopping
intention, and he concludes that online merchants should be aware of customers perceived risk
and strategies adequately to avert these risks.

Based on literature, the theoretical framework for this research would be conceptualized based
on the above-mentioned findings, using information privacy risk, security risk, delivery risk,
financial risk and quality risk because these variables are vastly recognized as the customers
perceived risk variables that hinders purchase intention and these variables had been mostly
researched by experts in this field, as such, the variables are well suited for this research.

Figure 1.1: Adapted from Masoud (2013, Forsythe and Kwon (2014), Zhang et. al, (2012).

Information privacy risk is the probability of losing personal information which is of great
concern to the public (Masoud, 2013). According to Zhang, et al. (2012) information privacy risk
usually occur when customers ingress websites by providing their personal identifiable
information in other to purchase goods or services and the websites operators gather and

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decide to disseminate customers information to the public. In Zviran (2008) view, lack of trust
in virtual environment makes some privacy conscious shoppers provide incomplete personal
information. Smith (2010) stated that improper access to digitally stored personal information,
collection of personal information and unauthorized secondary use of personal information are
the three main information privacy risk that hinder customers from shopping online. Thus
customers are reluctant to embrace online shopping because as compared to brick and mortar,
information privacy is difficult to protect in online environment (Smith, 2010).

Similarly, Dai, Forsythe and Kwon (2014) revealed that customers that have experienced
misuse of personal information by website operators find it difficult to go back to online
shopping in future and they are prone to discourage other customers online shopping intention.

Thus, H1: Information privacy risk has a significant influence on online shopping intention.

A study by Thompson and Liu (2011) found that there is a significant relationship between
security risk and intention to purchase online. Martin and Camarero (2009) showed that
customers avoid online shopping not because it is not convenient but because most customers
are scared of losing their credit card information to credit card theft. Thus Martin and Camarero
(2009) conclude that security risk has significant influence on online shopping intention.

Hence, H2: Security risk has significant influence on online shopping intention.

Bauer et al. (2006) showed that customers perceived delivery to be risky because some
delivery agents hardly meet up the time frame scheduled for delivery and in most cases they
deliver incomplete package where some of the products paid for are absent; thus, they conclude
that delivery risk has significant influence on online shopping intention.

Thus, H3: Delivery risk has significant influence on online shopping intention

Masoud (2013) found that any form of financial loss, either through credit card fraud, lesser
quality or product that did not perform as expected, deters online shopping and has strong
negative effect on online shopping intention.

Therefore, H4: Financial risk has significant influence on online shopping intention

Zhang, et al. (2012) revealed that quality risk has negative influence on online
shopping intention because when products purchased online do not perform to satisfy
customers expectation and customers give unsatisfied review, their reviews tend to discourage
other intending shoppers but if there were positive reviews, intending shoppers will be
encourage to shop online. Also, Garbarino and Strahilevitz (2014) states that quality risk is
proportional to performance risk which inhibits intention to purchase online.

Thus H5: Quality Risk has significant influence on online shopping intention.

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3. Research Design and Methodology (important for research papers)
Study Setting

In order to attain the aim of this study and to avoid unbiased data, this research target the right
sample, which is, customers who still prefer to shop for apparels in brick and mortar; however,
due to the large population of apparel customers in Malaysia, this research will not be able to
get response from all the customers in Malaysia (Wilson, 2010). As such, the researcher met
with some participants at the heart of Kuala Lumpur; Bukit Bintang which is Kuala Lumpur's
trendiest fashion shopping and entertainment district, where shopping malls like Pavilion, Lot
10, Starhill Gallery, Bukit Bintang Plaza and Sungai Wang Plaza are located.

Research Methodology

Research method refers to the behavior and instruments used in selecting and constructing
research techniques (Wilson, 2010). Saunders, Lewis and Thornhill (2012) argued that there
are only two basic research method, which are quantitative method and qualitative method.
Quantitative method focuses on describing and analyzing phenomenon by using numerical data
and empirical models, it is used to quantify attitudes or behaviors, measure variables in which
they hinge, compare and point out correlations (Wilson, 2010; Mujis, 2010). On the other hand,
qualitative method examines the constitution of meaning in everyday social phenomena, it
seeks to preserve the form and consent of human behavior and to analyze its qualities, rather
than subject it to mathematical or other formal transformations (Potter, 1996).

Thus, in regards to this research, quantitative method is the selected data collection method
because it explains phenomena by collecting data in quantitative form which can be subjected to
rigorous quantitative analysis in a formal and rigid fashion and it is specifically suitable for
testing hypothesis (Kothari, 2004). Similarly, Mujis (2010) argued that quantitative method is
deductive, measurable and it is essential in business research as parameters relating to the
population as a whole can be estimated easily by using data from samples. As such, quantitative
analysis will enable this research to generalize its findings base on the result from selected
sample.

Sample size and Sampling Method

In order to attain the aim of this study and to avoid unbiased data, this research target the right
sample, which is, customers who still prefer to shop for apparels in brick and mortar; however,
due to the large population of apparel customers in Malaysia, this research will not be able to
get response from all the customers in Malaysia (Wilson, 2010). Hence, probability sampling is
not deemed suitable for this research as the researcher could not have access to the whole
population and sampling frame that enlist the whole population cannot be accessed because in
probability sampling the entire population as to be known, each individual in the population has
a specifiable probability of selection and sampling occurs by a random process based on the
probabilities (Gravetter and Forzano, 2015). Therefore, convenience sampling which is a type of
non-probability sampling is appropriate sampling techniques for this research because it
enables easy selection of the target audience as participants can be selected based on their
availability and willingness to respond (Saunders, Lewis and Thornhill, 2009).

According to Hair et al, (2011) for researchers to limit data error and to avoid unbiased
response, the sample size of a research has to be between 300 to 500 participants. As such, this
research solicited responses form 307 participants some of which are Asians, Africans and
others. To achieve this, the researcher visited Kuala Lumpurs biggest malls; Pavilion and
Berjaya Times Square to distribute questionnaires to customers shopping in the mall.
Researcher frequents these shopping malls for two weeks before being able to gather 307
responses from 307 different participants.

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According to Wilson (2010) questionnaire is the most suitable for survey strategy and is mostly
used for quantitative method. Similarly, previous researches on the influence of perceived risk
on online shopping intention made used of questionnaires (Samadi and Yaghoob-Nejadi, 2009;
Zhang, et al. 2012). Thus, questionnaire is the collection tool used for this research, though, the
questionnaire was not adopted from a particular study, new questionnaire was developed by
extracting and modifying questions from prior researches to examine the influence of perceived
risk on online shopping intention in Malaysia apparel industry and to ascertain the validity and
reliability of the new questionnaire it was pilot-tested (Potter, 1996). This questionnaire which
was designed for the purpose of collecting data from participant is divided into three sections,
however, to ease the collection of quality data, the questionnaire was made readable by using
English language which is the lingual franker, the layout was well structure and the questions
were arranged accordingly (Bryman, 2001).

Figure 3.1: Socio-Demographic profile of the participants

Data Analysis Methods

IBM SPSS 20.0 version was chosen for the statistical analysis of this research instead of AMOS,
Excel and E-VIEWS because with SPSS, researcher can easily import data, have asses to full set
of statistical tests, make use of flexible pivot tables that are easy to work with, analyze
frequencies and descriptive statistics with ease, produce various graphs and chart
automatically, save time and increase productivity with the help of SPSS tutorial which aids
better understanding of statistical results (Gravetter and Forzano, 2015).

To gather unbiased data from the target population about the influence of perceived risk on
online shopping intentions in Malaysias apparel industry, that is, the perceived risk that inhibit

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Malaysians from buying fashion apparel online, this research had created a multivariate
questionnaire. Hence, the following statistical test would be performed. Regression analysis is a
conceptual method for investigating functional relationship among variables (Chatterjee and
Hadi, 2015). For the purpose of this research, Multiple-linear regression which is a statistical
method for testing and estimating casual effects between variables using a set of statistical data
is employed (Howell, 1992). Correlation analysis is used to measure the strength or degree to
which two or more variables are related (Dalgaard, 2008). Many statistical techniques can be
used to compute correlation coefficients including Pearsons product-moment, Spearmans Rho
and Kendalls Tau, however for the purpose of this study, Pearsons correlation which is a
bivariate statistic that measures how strongly two variables are related to one another will be
used (Kleinpeter, 2007; John, 2003).

Ethical Considerations

To carry out a research, several ethical related issues concerning the target population,
gathering of unbiased data and how collected data will be analyzed have to be considered. As
such, this research considered the following;

To avoid deceit, participants are entitled to know the purpose of the research before
participating, thus, the participant information sheet which is on the first page of the
questionnaire educates the participants about the aim of this research and it was made known
to them that the research is strictly for academic purpose. The participants were also assured
that the data they provide will only serve as the main data set for this research (Wilson, 2010).

If any issues happen, we will discuss first what we need to do, what is the first step
is, so they give idea, from that we check which idea is good or which idea is bad .
We have meeting or through emails

4. Results and Discussion

Reliability

Figure 4.1: Reliability testing

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Descriptive statistics

Figure 4.2: Descriptive statistics

Correlation

In regards to this research, Pearsons correlation is employed to explore the probability of

significant correlation between the independent variables (which include Information privacy
risk, security risk, delivery risk, financial risk, and quality risk) and dependent variable (online
shopping intention). This will enable the researcher to ascertain the relatedness or relationship
between the independent and dependent variables. The Pearsons correlation coefficient (R) for
this study is presented in table 4.9 below, where Information privacy risks R = 0.694 indicating
that there is a moderate 69% relationship between information privacy risk and online
shopping intention, thus there is a significant relationship between information privacy risk and
online shopping intention. In terms of security risk, R = 0.636, which signifies that there is a
moderate 64% relationship between security risk and online shopping intention, hence, there is
a significant relationship between security risk and online shopping intention. For delivery risk,
R = 0.668, it shows that there is a moderate 67% relationship between delivery risk and online
shopping intention; therefore, there is a significant relationship between delivery risk and
online shopping intention. Considering financial risk with its R = 0.722, it signifies that there is a
strong 72% relationship between financial risk and online shopping intention, thus, there is a
significant relationship between financial risk and online shopping intention. Finally, in terms of
quality risk with R = 0.740 it shows that there is a strong 74% relationship between quality risk
and online shopping intention, therefore it can be concluded that there is a significant
relationship between quality risk and online shopping intention.

According to Pett et al. (2003) argument, it is evident that none of the variables has correlation
coefficient of 0.00 to 0.29; this signifies that none of the independent variables have weak
relationship with the dependent variable. However, with all the variables having correlation
coefficient between minimum of +0.636 and maximum of +0.740, it implies that the strength of
the relationship between the independent variables and dependent variable is from moderate
to strong, representing significant relationships.

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 Figure 4.3: Correlations

Regression analysis

According to Jain and Jhunjhunwala (2007) regression analysis is the study of the nature of
relationships between variables so that one may be able to predict the unknown value of one
variable for a known value of another variable. In Morgans (2013) view, regression analysis
measures the nature and the extent of the relationship between two or more variables, thus
enable one to make predictions. For this research regression analysis is employed to predict
online shopping intention using five independent variables of perceived risk which are
information privacy risk, security risk, delivery risk, financial risk and quality risk.

Figure 4.4: Regression

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Discussion

Hypothesis 1: Information privacy risk has a significant influence on online shopping intention.

Information privacy risk is supported by the regression analysis as its t-value of the coefficient
of beta and p-value meet its set criteria, it has a t-value of 3.809, which is greater than +1.96 and
its p-value of 0.000 is lesser than 0.05. This implies that information privacy risk has a
significant influence on online shopping intention. Thus, hypothesis 1 which states that
information privacy risk has a significant influence on online shopping intention is accepted.
This discovery is consistent with prior discoveries of Tsai and Yeh (2010), Dai, Forsythe and
Kwon (2014), Noort et al. (2008) and Chapell (2005) who found that over 69% of United State
online shoppers minimized their online purchases because of concerns related toprivacy and
safety of their personal information, thus, Chapell concludes that information privacy risk
deters online shopping intention.

Hypothesis 2: Security risk has significant influence on online shopping intention.

Security risk has a t-value of 0.929 which is lesser than +1.96 and a p-value of 0.353, greater
than 0.05, this suggests that security risk is not supported by the regression analysis as the t-
value and p-value did not meet its set criteria. It also specifies that security risk does not have
influence on online shopping intention. Hence, hypothesis 2 which state that security risk has
significant influence on online shopping intention is rejected. This result aligns with that of Ling,
Chai and Piew (2010) and Mann and Jha (2015) who found that 60% of online shoppers in India
have trusted merchant they purchase from without having the fear of identity or credit card
theft, thus Mann and Jha (2015) concluded that security risk does not inhibit online shopping
intention.

Hypothesis 3: Delivery risk has significant influence on online shopping intention.

Delivery risk is not supported by the regression analysis as the t-value and p-value did not meet
its set criteria, it has a t-value of 1.432 which is lesser than +1.96 and a p-value of 0.153 which is
greater than 0.05. This implies that delivery risk does not have influence on online shopping
intention. As such, this research rejects hypothesis 3 that states that delivery risk has significant
influence on online shopping intention. This discovery correspond with that of Javadi et al.
(2012) who discovered that delivery risk does not have negative effect on online shopping
intention because delay in delivery does not mean retailer is not willing to deliver the product
customers have paid for because some delay might be as a result of custom check which will be
made known to customers through the tracking details.

Hypothesis 4: Financial risk has significant influence on online shopping intention.

Financial risk with t-value of 3.522 is greater than +1.96 and its p-value of 0.000 is lesser than
0.05. This signifies that financial risk is supported by the regression analysis as its t-value and p-
value meet the set criteria. This shows that financial risk has significant influence on online
shopping intention. Hence, hypothesis 4 which imply that financial risk has significant influence
on online shopping intention is accepted. This finding aligns with previous findings of Samadi
and Yaghoob-Nejadi (2009), Almousa (2011) and that of Chang et al., (2012).

Hypothesis 5: Quality Risk has significant influence on online shopping intention.

Quality risk is supported by the regression analysis as the t-value and p-value meets its set
criteria, where t-value of the coefficient of beta of quality risk which is 6.080 is greater than
+1.96 and p-value of 0.000 is less than 0.05, this authenticate the fact that quality risk has
significant influence on online shopping intention. Therefore, hypothesis 5 that states that
quality risk has significant influence on online shopping intention is accepted. This outcome
correspond with preceding research by Zhang, et al. (2012) who revealed that quality risk has
negative influence on online shopping intention because when products purchased online do
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not perform to satisfy customers expectation and customers give unsatisfied review, their
reviews tend to discourage other intending shoppers but if there were positive reviews,
intending shoppers will be encourage to shop online.

Figure 4.5: Hypotheses

5. Conclusion

The emergence of internet has impacted the worlds marketing environment in a great way and
it has provided businesses the opportunity to expand and enhance their ability to reach
customers in different locations, both locally and globally through electronic commerce
(Masoud, 2013). Similarly, the internet had brought about great opportunities to small-to-
medium enterprises, enabling them to make use of ecommerce and operate Business-to-
Consumer (B2C) ecommerce which involves selling productsor services to the finally consumers
via internet, thereby, giving them the presence that can be compared to that of market leaders
(Moore, 2008) Thus, online shopping had become popular as it is the fifth most popular activity
on the internet after email, social networking, accessing online news and web browsing
(Neilsen, 2014). However, despite this popularity of online shopping and the myriads of benefits
that comes with it, many customers still avert online shopping because of the risk associated
with it, as there had been issues of privacy and security breach, credit-card fraud, non-delivery,
lack of guarantee of quality goods and services among customers (Rao, 2012; Meskaran et al,
2013). This risk associated with online shopping, brought about the essence of this study which
had endeavor to research the reasons behind the aversion of online shopping among shoppers
in Malaysia apparel industry.

Hence, the variables used for this research were deduced and conceptualized from prior
researches on the influence of perceived risk on online shopping intention; these variables
include information privacy risk, security risk, delivery risk, financial risk, and quality risk
(Almousa, 2011; Masoud, 2013; Dai, Forsythe and Kwon, 2014). The Hence, the variables used
for this research were deduced and conceptualized from prior researches on the influence of
perceived risk on online shopping intention; these variables include information privacy risk,
security risk, delivery risk, financial risk, and quality risk (Almousa, 2011; Masoud, 2013; Dai,
Forsythe and Kwon, 2014).

Furthermore, this research conducted a primary research which solicited responses from 307
customers who still prefer to shop for apparel in bricks and mortar than shopping online, using
convenience sampling which is a type of non-probability sampling that enables easy selection of
the target audience, as participants can be selected based on their availability and willingness to
respond (Saunders, Lewis and Thornhill, 2009). The questionnaire used made it possible for the
data to be analyzed quantitatively because the questionnaire made use of closed questions
which compels participants to choose from the multiple options outlined rather than an open
question that enables participants to respond with their own words (Saunders, Lewis and
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Thornhill, 2009). Hence, this enabled this study to fulfill its aim by examining the influence of
perceived risk on shopping intention in Malaysia, specifically in Malaysias apparel industry.

Implication for Practice

According to the findings of this research, the three customers perceived risk that influence
online shopping intention in Malaysias apparel industry will continue to hinder online
shopping intention, because in terms of information privacy risk, customers still lack trust in
virtual environment and some privacy conscious shoppers might continue to provide
incomplete personal information (Zviran, 2008). Similarly, the three main information privacy
risks that hinder customers from shopping online which are collection of personal information,
improper access to digitally stored personal information and unauthorized secondary use of
personal information would still make customers reluctant to embrace online shopping
because as compared to brick and mortar, information privacy is difficult to protect in online
environment (Smith, 2010).

In addition, customers will continue to avert online shopping because, they are still concerned
about the financial loss that they may incur if purchased product did not perform as expected or
if the product delivered refused to work or failed to meet their need. Likewise, the no refund
policy of most online stores and rigid payment methods will make it more risky for Malaysia
customers to shop for apparel online (Forsythe and Shi, 2013). Finally, quality risk will
continue to deter Malaysia customers from shopping for apparel online because the inability of
online shoppers to see, touch or feel the desired product limit the information they have about
the product, as a result most customers will continue to doubt the quality of the product. Also,
the facts that most pictures and product information provided on e-shops are insufficient to
convince customers about the product quality, customers might continue to avert shopping
online for apparel (Lee, 2009).

Recommendation

In order to curb the three major customers perceived risk that inhibit online shopping intention
in Malaysias apparel industry and increase the market share of online stores, retailers have to
improve the policy guiding the collection of personal information, prevent improper access to
digitally stored personal information, prohibit unauthorized secondary use of personal
information and severely punish anyone that misuse customers personal information. This new
policy should be made known to customers and any prohibitory act should be made known to
the public, implementing this will increase trust in virtual environment and in-turn reduce
customers perceived risk of information privacy risk. In regards to quality risk and financial
risk, retailers should give guarantee that their product texture/color is same as displayed in the
e-shop, they could also pledge 100% refund within a specified period if customers are not
pleased with the product quality. Hence, the refund policy should be boldly written in their
terms and condition and they could also use it as slogan which would be displayed at a
noticeable part of the website, in order to convince more customers.

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