Modeling the Multi-dimensional Facets of Perceived Risk in Purchasing Travel Online: A Generational Analysis

ABSTRACT

This paper examines the differences in consumers’ risk perception when intending to purchase travel online across Millennials and Baby Boomers. The proposed research model was tested using structural equation modeling. The results show that perceived financial risk, perceived risk privacy, and psychological risk are significant for both Millennials and Baby Boomers. Overall risk was found to have a stronger negative impact on consumers’ intention to purchase travel online. Results from this study will be helpful to travel businesses to determine which cohorts are averse to different types of risk and reduce consumers’ risk perception and increase online purchase intention.

KEYWORDS:

• Generational cohort theory
• perceived risk
• millennials
• baby Boomers
• travel
• Australia