Online retailers’ ethics and its effect on repurchase intention: The mediating role of perceived risk

Online shopping presents a different environment, atmosphere, and experience compared to offline shopping due to the convenience provided when transacting at any location through the internet from web browsers or mobile applications. However, ethical violations are more likely to occur during this mode of transaction compared to direct shopping. Consumers’ perceptions towards online retail ethics and the perceived risk caused by the uncertainties of transactions have been identified as the major problems causing hesitancies in making decisions for online shopping. Therefore, this study aims to investigate the effect of consumers’ perception of retail ethics and the perceived risk on repurchase intention. In addition, to investigate the role of perceived risk in mediating the relationship between consumers’ perception of retail ethics and repurchase intention in the context of online shopping. An online survey was conducted on customers that have experience in purchasing products on the marketplace website, while a structural equation model was also used to test the conceptual model of the study. The results showed that consumers’ perceptions of online retail ethics had positive effects and perceived risk had negative effects on repurchase intention. Additionally, it was observed that the perceived risk partially mediated the relationship between consumers’ perception and repurchase intention.