Role of Social Media in Reducing Consumer Purchase Risk in Apparel Shopping: A Pilot Study of Indian Online Consumers

Abstract Indian apparel retail is witnessing a radical transformation through digital means, and social media is transforming the buying habits of people. Although shopping for clothes online is convenient, it also increases the perceived risk because it is difficult to touch or feel the clothes with one's hands and there is a lack of certainty about the quality and fit of the items purchased. This pilot study aims to explore how social media can decrease the purchase risk of consumers in the apparel domain in the Indian setting. The research, based on the theory of perceived risk and literature on social media engagement, considers the effects of the social media affordances that shape risk perceptions and purchase intentions: user-generated content, peer reviews, endorsements from influencers and interactions with brand communities. A quantitative research design was used and data collected from 100 online apparel customers in the Indian metropolitan and tier-2 cities. Descriptive statistics, reliability analysis and exploratory factor analysis was used. Initial results indicate that social media involvement is highly negatively related to perceived risk, especially functional and financial risk. Content created by peers showed the greatest potential in reducing risk. The study provides initial insights into perceived risk in digital commerce and has implications for the apparel brand, the marketer, and the platform designer. Social media seems to be not only a marketing tool but may also be a risk management infrastructure that gives consumers more choice in making purchasing decisions. The results of a pilot study should be considered preliminary and need to be replicated in larger sample sizes.