Effect of brand name on consumers' risk perceptions of online shopping

Abstract The purpose of the present study was to investigate the relationship between brand names and consumers' perceived risk. Hypotheses dealt with whether the presence of a product's brand name affects consumers' perceived risk towards shopping online; whether the familiarity with a brand name influences consumers' perceived risk; and whether online shoppers and non‐shoppers perceive risk towards shopping online differently. Results indicate that the presence or absence of a product's brand name affects online shoppers' perceived risk, but in the opposite direction to that expected. There was no significant difference between online shoppers' perceived risk vis‐à‐vis brand familiarity; however, online shoppers possessed lower perceived risk than non‐shoppers. Implications and limitations are discussed and recommendations for future research are provided. Copyright © 2004 Henry Stewart Publications Ltd.