Consumers' Perceived Risk and Risk Reduction Strategies

The author points out that,to the consumers,perceived risk is the main factor that affects greatly consumers' purchasing behavior in online shopping.There are more risks for consumers to purchase online than in the traditional environment.Based on the theory of perceived risk,the author mainly analyses the various kinds of perceived risks and the sources of consumers' perceived risks in e-shopping situation,and puts forward some effective ways to reduce consumers' perceived risk from the two perspectives of consumers and e-retailers.In the whole purchasing process,consumers should adopt such measurements as initially search for the information,pay attention to the shop's image and choose the most secure way of payment,the e-merchant should work hard in terms of net technology and security,web site and page design,products and service.Only if we have done this,consumer's confidence in online shopping will be improved,and we can achieve the purpose of attracting more consumers and creating the value.