Effect of Perceived Risk on Online Buying Behaviour Among Undergraduate Students in Ahmadu Bello (Abu) University Zaria

Abstract

The electronic commerce (e-commerce) has shown an upward trend in Nigeria, providing online transaction platform for both domestic and global markets which benefits businesses and consumers. A comprehensive understanding of how perceived risk influence online buying behaviour is essential for e-commerce marketers to gain a competitive advantage. Therefore, this study examines the effect of the perceived risk dimension on online buying behaviour among undergraduate students in ABU Zaria. The study used the partial least square structural equation modeling (PLS-SEM) as a technique to run and analyse the data collected from 400-level undergraduate students using a sample of 246 students. The findings of the study showed that financial risk and privacy risk in online buying behaviour were found to be negative and significant. However, Product performance risk was found to be a positive and insignificant relationship in online buying behaviour. The study concludes that financial risk and privacy risk are critical factors that prevent students from engaging in online buying behavior. Thus, the study recommends that online vendors should focus on enhancing students’ confidence in their ability to restore or reduce the level of perceived risks in online buying behaviour.