Perceived risk and anxiety in online transaction intention

Purpose: This study aims to develop a model to explain how perceived risk and anxiety affect the intention to make transactions online. Methods: We applied an online survey consisting of 285 valid respondents. The data were analyzed with structural equation modeling using Smart-PLS 3.2.8 with the application of PLS-PM model through Confirmatory Factor Analysis. Findings: Results demonstrate that social, physical, and performance risks were not statistically significant to explain the intention to conduct transactions online, meaning only that time risk, anxiety and psychological risk are statistically significant influences. Theoretical contributions: Although the literature demonstrates that technological anxiety can catalyze perceived risks, this research found that it did not strongly affect the analyzed consumer sample. Thus, respondents positively feel safer when doing financial online transactions. This research advances discussions on consumers performing an online transaction facing emotional, physical, and financial risks. Practical implication: This study shows that consumer behavior has been less affected by emotional factors, such as anxiety and risk perception, arising from the use of digital technologies to carry out online transactions. A relevant aspect to be explored by managers and decision makers is to further explore the convenience factor in their actions, which will further reduce the effects of risk perception and anxiety in carrying out online transactions. Because if they know how the consumers behave during an online transaction, they can improve the actions to favor a successful transaction.