Digital literacy, perceived risk, and purchase intention in the South African online retail sector

Abstract

Online purchase behavior, while steadily growing, is not as prevalent in South African as in other, developed countries. Although South Africa has a significant population of internet users and widespread internet access, it has not resulted in a corresponding rise in the adoption of online commerce. This study aimed to establish whether certain factors, namely digital literacy, perceived risk, ease of use and usefulness, influence consumers’ intention to adopt online retail purchasing in South Africa. Data was gathered from 215 participants in South Africa through an online questionnaire survey. Perceived risk and perceived ease of use were found to be positively and significantly correlated with digital literacy. In contrast to earlier studies, the results suggest that digital literacy does not have a significant influence on an individual’s perception of the usefulness of technology. The study also found no substantial correlation between perceived ease of use and an individual’s online purchasing intentions. Perceived usefulness was found to be a key determinant of consumer’s purchase intentions. The results of this study are highly significant to retailers, government bodies, and other industries, as they emphasise the significance of taking appropriate actions to improve the digital literacy skills of the general public to drive the adoption of e-commerce. The results also, demonstrate the importance of raising awareness regarding risk perception in the context of online shopping. This can be achieved by marketing campaigns that focus on promoting online security awareness.