1. Introduction 1
1.1 Research motivation and objectives 1
1.2 Research contributions 3
2. Theory 4
2.1Trust vs. customer trust 5
2.2 Customer trust vs. online trust 8
2.2.1 Define customer trust in online shopping 8
2.2.2 The importance of customer trust in online shopping 9
2.2.3 Findings from past studies 9
2.3 E-business Vs E-drugstore 12
2.3.1 A glance of pharmaceutical industry & drugstore sector 14
2.4 Website factors that might affect the perceptions of customers’ online trust 18
2.4.1 Website factors VS consumer factors 18
2.4.2 Discussion of website factors 19
3. Methodology, data, and model 36
3.1 Methodology and data collection 36
3.2 Model & analysis 37
3.2.1 Variance analysis 37
3.2.2 Factor analysis 40
4. Results and discussion 43
4.1 Results for research questions 43
4.2 Results from factor analysis 47
5. Managerial implications 49
6. Limitation and further research 54
7. Conclusion 56
Appendix A: Customer trust survey 57
Appendix B: Factor analysis of attributes of websites factors (Heavy Loadings) 58
Appendix C: Frequency table 59
References 60

1. Introduction
1.1 Research motivation and objectives
It is commonly accepted that e-business is beneficial to the further growth and success of businesses, government, and not-for-profit organizations (Sultan et al, 2002). Specifically, the advent of the Internet has brought new business opportunities to the retail industry. However, no matter how wonderful e-business is, many small businesses still cannot participate in the online market due to a lack of customer trust. While previous academic studies have emphasized the significance of trust in Internet strategy (e.g., Hoffman, Novak and Peralta 1999; Urban, Sultan and Qualls, 2000) and suggested potential determinants and consequences of online trust (e.g., Shankar, Urban and Sultan 2002; Yoon 2002), there has not been