Online or offline: Perceived risk and its influence on young consumers decision of where to consume.

Abstract

This paper seeks to increase the knowledge about how perceived risk influence young consumers’ decision to consume online or in a brick-and-mortar store. In addition, gain a deeper understanding if brick-and-mortar stores are still relevant when online shopping is taking a more prominent role in how individuals consume their products and services. The conducted research analyses different factors of perceived risk and the part they play in young consumers’ decision of where to purchase products and services. Data was gathered through semi-structured interviews with respondents between the age of 18 - 30 who actively consume products and services both online and in a brick-and-mortar store. The findings indicate that financial, functional and convenience risk are prominent factors influencing young consumers’ decision to either consume online or in a brick-and-mortar store. While factors such as non-delivery and privacy risk play minor parts.