Consumer Perceived Risk and Online Shopping in Ghana: The Moderating Role of Electronic-Word of Mouth

Abstract

Despite increase in technology and convenience associated with online shopping, the progress of acceptance has been very slow in Ghana. There is a theoretical argument that the perceived fear people associate to technological innovations serves as a barrier for it acceptance. However, in Ghana, perceived fear and online shopping adoption been under researched. The current study examined how different dimensions of consumer perceived risk influence online shopping behaviours in Ghana. A total of 200 online shoppers were conveniently selected from the Accra Metropolis in Greater Accra region of Ghana. Data was collected through cross-sectional survey and analysed using structural equation modelling. Findings showed that participants have been engaging in online shopping behaviours in the last five years, with majority of them shopping online in the last two years. Consumer perceived risk constructs had negative effect on online shopping behaviours. Specifically, financial, privacy and delivery risks had significant negative impact on online shopping behaviour. Perceived financial risk had the greatest effect on online shopping behaviours among the participants. E-word of mouth moderated the effect of perceived risk on online shopping behaviours, such that an increase in e-word of mouth reduces the negative impact of perceived risk on online shopping behaviours. The findings are discussed within the context of promoting online shopping in Ghana.