The Mediating Role of Advertisement in the Relationship Between Social Media and Online Risk and its Effect on Online Shopping Habits

The invention of web 2.0 and the advancement of information and communication technology have provided consumers and businesses with the opportunity to utilise online transactions. The Internet is an essential tool for doing online shopping. Despite the importance and popularity of online shopping, most Nigerian consumers largely depend on conventional shopping rather than online shopping due to their resistance to online shopping habits. In Nigeria, few studies have examined the effect of advertising, social media and online risk on online shopping habit. Thus, this study aimed to investigate the mediating role of advertising in the relationship between social media and online risk and its effect on online shopping habits in Nigeria.  A self-administered questionnaire was used to collect data from 375 respondents using a purposive sampling technique. Structural equation modelling was used to analyse and evaluate the hypotheses (SEM-AMOS). The results show that online risk and advertising had an insignificant direct effect on online shopping habits. Moreover, the study result showed that social media has a statistically significant and direct effect on online shopping. While advertising partially mediates the relationship between online risk and online shopping habits, it fully mediates the relationship between social media and online shopping habits. The findings of this research can contribute to the existing literature. Practically, results obtained from this research can help Nigerian online firms and consumers to understand the effect of advertising, social media and online risk on online shopping habits.