The Role of Risk Related Knowledge in the Diffusion of Internet Innovations

Several variables can influence the adoption of innovation. Human Computer Interaction research has focused on ease of use as the prime determinate of user satisfaction and adoption. This study explores the issues that influence the adoption, and further examines the knowledge of perceived risk as an influence. The study examines existing theory as it pertains to the diffusion of innovation from the perspective of the Internet, and assesses the extent to which Internet technology can be used in building long-term consumer relationships. Despite the high volume of shopping done on the Internet each day, many consumers fail to make online purchases because of continued reluctance to engage in transactions with intermediaries that are not familiar and trusted. Based on the previous studies, this study posits that perceived risk for security of online transactions is one of the factors influencing online purchasing behaviour, and has an effect on the continued use.