Building consumers’ confidence in adopting e-commerce: A Malaysian case

Consumers’ confidence on the online transactions is vital for the continuous growth and development of electronic commerce. In the present study, we experimentally investigate the measures of consumers’ perceived security and privacy over online transactions as well as the perceived trust and reliability of online vendors in order to influence consumers’ overall confidence in e-commerce transactions. On the basis of responses from 163 participants, it is concluded that the major concerns in e-commerce adoption are: security and privacy over online transaction process and trust and reliability of online vendors. In order to be successful in electronic marketplace, the organisations are expected to expend their resources and exert efforts to ensure that consumers’ concerns are adequately addressed.e-commerce; security and privacy; trust; online vendors; consumer behaviour; Malaysia

THE INVESTIGATION OF THE FACTORS ASSOCIATING CONSUMERS’ TRUST IN E-COMMERCE ADOPTION

The success of electronic commerce significantly depends on providing security and privacy for its consumers’ sensitive personal information. Consumers’ lack of acceptance in electronic commerce adoption today is not merely due to the concerns on security and privacy of their personal information, but also lack of trust and reliability of web vendors. Consumers’ trust in online transactions is crucial for the continuous growth and development of electronic commerce. Since Business to Consumer (B2C) e-commerce requires the consumers to engage the technologies, the consumers face a variety of security risks. This study addressed the role of security, privacy and risk perceptions of consumers to shop online in order to establish a consensus among them. The findings provided reliability, factors analysis for the research variables and for each of the study’s research constructs, correlations as well as regression analyses for both non-online purchasers’ and online purchasers’ perspectives, and structural equation modeling (SEM) for overall model fit. The overall model was tested by AMOS 18.0 and the hypothesis, assumptions for SEM and descriptive statistics were analyzed by SPSS 12.0. The empirical results of the first study indicated that there were poor correlations existed between consumers’ perceived security and consumers’ trust as well as between consumers’ perceived privacy and consumers’ trust regarding e-commerce transactions. However, the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. While trustworthiness of web vendors was a critical factor in explaining consumers’ trust to adopt ecommerce, it was important to pay attention to the consumers’ risk concerns on ecommerce transactions. It was found that economic incentives and institutional trust had no impact on consumers’ perceived risk. Findings from the second study indicated that perceived privacy was still to be the slight concern for consumers’ trust in e-commerce transactions, though poor vi i relationships or associations existed between perceived security and consumers’ trust, between trustworthiness of web vendors and consumers’ trust, and between perceived risk and consumers’ trust. The findings also showed that the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. It was found that though economic incentives influenced a consumers’ perceived risk in online transactions, institutional trust had no impact on consumers’ perceived risk. Overall findings suggested that consumers’ perceived risk influenced their trust in e-commerce transactions, while the construct of perceived privacy manifested itself primarily through perceived security as well as trustworthiness of web vendors. In addition, though economic incentives had no impact on consumers’ perceived risk, institutional trust influenced a consumers’ perceived risk in online transactions. The findings also suggested that economic incentives and institutional trust had relationships or associations with consumers’ perceived privacy. The findings from this research showed that consumers’ perceived security and perceived privacy were not mainly concerned to their trust in e-commerce transactions though consumers’ perceived security and perceived privacy might slightly influence on the trustworthiness of web vendors in dealing with online store sites abroad. Furthermore, consumers’ perceptions on the trustworthiness of web vendors were also related to their perceived risks and the concern about privacy was also addressed to perceived risks. Index terms: Perceived security; perceived privacy; perceived risk; trust; consumers’ behaviour; SE

An Empirical Study on Factors Influencing Consumers’ Trust in E-Commerce

In today's business scenario Internet is one of the key contributors in the globalization of markets which have become one of the main sources of capital flows to emerging economies. Internet technology has adopted for various application like E-governance, E-Procurement and E-commerce. E-Commerce has many advantages such as efficiency and flexibility but also disadvantages such as threat, security and fraud. In General Context, the consumer prefers to purchase the product through physical location rather than through E-Commerce. As the approach is based on the trust, there is a need to identify and analyze the factors such as security, privacy and familiarities that are affecting the trust in electronic transactions. Further, this paper provides an overview of role of trust in e-commerce and attempts to answer the questions such as how the trust can be established between the consumer and online vendor so they can purchase the product through E-commerce. In addition, the finding suggests that perceived security of E- transaction on trust is intervened by perceived privacy and perceived familiarities, and consumer’s trust in E- transaction is considerably related with the reliability of E- vendors. Also consumer’s trust is negatively related with perceived risks in E- transactions. However, there is no important impact from perceived privacy, security and familiarities to the trust in E- transactions. Keywords: WWW- World Wide Web,Trust, E-Commerce,

Concern for Information Privacy and Online Consumer Purchasing

Although electronic commerce experts often cite privacy concerns as barriers to consumer electronic commerce, there is a lack of understanding about how these privacy concerns impact consumers\u27 willingness to conduct transactions online. Therefore, the goal of this study is to extend previous models of e-commerce adoption by specifically assessing the impact that consumers\u27 concerns for information privacy (CFIP) have on their willingness to engage in online transactions. To investigate this, we conducted surveys focusing on consumers\u27 willingness to transact with a well-known and less well-known Web merchant. Results of the study indicate that concern for information privacy affects risk perceptions, trust, and willingness to transact for a well-known merchant, but not for a less well-known merchant. In addition, the results indicate that merchant familiarity does not moderate the relationship between CFIP and risk perceptions or CFIP and trust. Implications for researchers and practitioners are discussed

THE EFFECT OF PRIVACY PERCEPTION AND SECURITY PERCEPTION ON CUSTOMER LOYALTY WITH TRUST AS AN INTERVENING VARIABLES IN ZALORA E-COMMERCE (A Case Study of Zalora Users in Yogyakarta City)

A business using the internet will have a great opportunity to develop. Business activity through popular internet media is called electronic commerce (e-commerce). There are lots of e-commerce that offer various kinds of goods needed by consumers. Starting from daily necessities or other additional items are widely offered in online shops. Some online shopping sites are even favored and have good ratings by consumers, one of which is Zalora Indonesia. This study aims to determine (1) the effect of Perceptions of Privacy on Trust (2) the effect of Perceptions of Security on Trust (3) the effect of Trust on Loyalty. The sample in this study was 100 respondents from the city of Yogyakarta who had shopped using the Zalora Indonesia e-commerce. The data collection method uses a questionnaire that is distributed using a purposive sampling technique. This study using the Data Quality Test, Classical Assumption Test, Multiple Regression Test, and Hypothesis Test. The results of this study indicate (1) there is a positive and significant influence on Perceived Privacy on Trust (2) there is a positive and significant effect on Perceived Security on Trust (3) there is a positive and significant effect of Trust on Loyalty

THE INVESTIGATION OF THE FACTORS ASSOCIATING CONSUMERS’ TRUST IN E-COMMERCE ADOPTION

The success of electronic commerce significantly depends on providing security and privacy for its consumers’ sensitive personal information. Consumers’ lack of acceptance in electronic commerce adoption today is not merely due to the concerns on security and privacy of their personal information, but also lack of trust and reliability of web vendors. Consumers’ trust in online transactions is crucial for the continuous growth and development of electronic commerce. Since Business to Consumer (B2C) e-commerce requires the consumers to engage the technologies, the consumers face a variety of security risks. This study addressed the role of security, privacy and risk perceptions of consumers to shop online in order to establish a consensus among them. The findings provided reliability, factors analysis for the research variables and for each of the study’s research constructs, correlations as well as regression analyses for both non-online purchasers’ and online purchasers’ perspectives, and structural equation modeling (SEM) for overall model fit. The overall model was tested by AMOS 18.0 and the hypothesis, assumptions for SEM and descriptive statistics were analyzed by SPSS 12.0. The empirical results of the first study indicated that there were poor correlations existed between consumers’ perceived security and consumers’ trust as well as between consumers’ perceived privacy and consumers’ trust regarding e-commerce transactions. However, the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. While trustworthiness of web vendors was a critical factor in explaining consumers’ trust to adopt ecommerce, it was important to pay attention to the consumers’ risk concerns on ecommerce transactions. It was found that economic incentives and institutional trust had no impact on consumers’ perceived risk. Findings from the second study indicated that perceived privacy was still to be the slight concern for consumers’ trust in e-commerce transactions, though poor vi i relationships or associations existed between perceived security and consumers’ trust, between trustworthiness of web vendors and consumers’ trust, and between perceived risk and consumers’ trust. The findings also showed that the construct of perceived privacy manifested itself primarily through perceived security and trustworthiness of web vendors. It was found that though economic incentives influenced a consumers’ perceived risk in online transactions, institutional trust had no impact on consumers’ perceived risk. Overall findings suggested that consumers’ perceived risk influenced their trust in e-commerce transactions, while the construct of perceived privacy manifested itself primarily through perceived security as well as trustworthiness of web vendors. In addition, though economic incentives had no impact on consumers’ perceived risk, institutional trust influenced a consumers’ perceived risk in online transactions. The findings also suggested that economic incentives and institutional trust had relationships or associations with consumers’ perceived privacy. The findings from this research showed that consumers’ perceived security and perceived privacy were not mainly concerned to their trust in e-commerce transactions though consumers’ perceived security and perceived privacy might slightly influence on the trustworthiness of web vendors in dealing with online store sites abroad. Furthermore, consumers’ perceptions on the trustworthiness of web vendors were also related to their perceived risks and the concern about privacy was also addressed to perceived risks. Index terms: Perceived security; perceived privacy; perceived risk; trust; consumers’ behaviour; SE

A study on trust in E-commerce transaction by Malaysian consumer / Nor Farah Wahida Nasir and Norisma Shakilla Ismail

According to Lawrence (2010) the number of internet users around the world has been steadily growing and this growth the impetus and the opportunities for global commerce. The growing popularity of internet business gives rise to their services that considered as more attractive services in e-commerce sector. The growing of e-commerce business gives chance to entrepreneur to take an opportunity to expand their business through internet. It will also influence the rises of transaction through internet. The growing of global commerce will affect the growing of internet business and e-commerce transaction in developing countries. Malaysia also affected from growing of global commerce. According to Hoffman (1999) and Jarvenpaa (2000), there is overwhelming evidence that trust in the online environment is an important element of electronic commerce (EC)relationships. According to Mayer (1995) and McKnight (2002), the overall trust in using E-commerce transaction is influenced by consumer’s perception of risk to the Ecommerce transaction due the nature of supporting infrastructure. Usually, the consumer’s perception of risk caused by their intention toward to perceived privacy, perceived security and company reputation. Despite the fears some consumers have about making online purchases, online purchasing behavior continues to grow in volume, and more and more people seem to be taking the plunge and buying online (Green, 2002; Horrigan, 2002). As the proportion of people refuse to buy online continue to shrink, concern about privacy, trust, security maybe overshadowed by other concerns. Ahuja et al. (2003) found privacy and security concern to be the most common reason their respondents gave for not shopping online, but other reasons were not behind on the list

Privacy and trust in the Islamic perspective: implication of the digital age

is slowly degrading the limitation and common understanding of privacy and trust through digital life, which has open world concept. It has become normal procedure when the user must submit their personal details for digital service such as social networking, electronic commerce, personal hosting, etc. Meanwhile, to be able to revealing their privacy willingly, user put their trust on organization to use their data based on agreement. In this sense, user expect their privacy right to be protected securely and actively. The dilemma occurred due to commercialization, consumerism and legislation as interaction issues, which shift the focus of user to identify the importance of their personal data and organization to analyze the process of data management. On the other hand, Islam gave the basic understanding in privacy and trust that emphasize important factor in human determination and intention. This paper will focus on how to define the standard and limitation of the concept privacy and trust based on Islamic perspective in aligning with the implication of digital age related to interest, classification and purpos

Building consumers’ confidence in adopting e-commerce: A Malaysian case

Consumers’ confidence on the online transactions is vital for the continuous growth and development of electronic commerce. In the present study, we experimentally investigate the measures of consumers’ perceived security and privacy over online transactions as well as the perceived trust and reliability of online vendors in order to influence consumers’ overall confidence in e-commerce transactions. On the basis of responses from 163 participants, it is concluded that the major concerns in e-commerce adoption are: security and privacy over online transaction process and trust and reliability of online vendors. In order to be successful in electronic marketplace, the organisations are expected to expend their resources and exert efforts to ensure that consumers’ concerns are adequately addressed