...Initial Trust in C2C E-Commerce and Strategies of Building Initial Trust in China Huamei Sun Factors Affecting Initial Trust in C2C E-Commerce and Strategies of Building Initial Trust in China Huamei Sun School of Management, Harbin Institute of Technology, Harbin 150001, China E-mail:shm9166@sina.com Abstract The study of initial trust is very important to the development of e-commerce. On the basis of current status of China’s C2C e-commerce, this paper conducts an in-depth analysis of the factors affecting the consumers’ initial trust. At last, the paper provides some valuable marketing strategies as to how to build the initial trust so as to facilitate the success of online transactions. The research conducted by this paper will help enterprise enhance their competitive advantage and contribute to the development of e-commerce. Keywords: Initial Trust, C2C E-Commerce, Online Shopping 1. Introduction The study of the trust in the e-commerce environment has long been mostly focusing on the B2C Model, yet with the development of the information technology, the online C2C business has accounted for more than 75% of the online shopping turnover, which has influenced people’s work environment greatly and become an important part in the daily life of consumers in the information society. Under the C2C e-commerce environment characterized by the person-to-person transactions, it’s difficult for the buyer and seller to build a high degree of trust. Online...
Words: 4584 - Pages: 19
...2012 CHALLENGES OF SECURITY, PROTECTION AND TRUST ON E-COMMERCE: A CASE OF ONLINE PURCHASING IN LIBYA Abdulghader.A.Ahmed.Moftah1,Siti Norul Huda Sheikh Abdullah2,Hadya.S.Hawedi3 Center of Artificial Intelligence Technology, Faculty of Information Science and Technology, Universiti Kebangsaan Malaysia (UKM) 1, 2 Center of System Science, Faculty of Computer and Mathematical Science ,Universiti Teknologi MARA (UiTM) Malaysia . 3 ABSTRACT : E-commerce is a successful business-based innovation via internet. This form of business transaction strategy offers many opportunities for growth in business and marketing services in various aspects. Online shopping is an intermediary mode between marketers or sellers to the end user or the consumers. Nature of online transaction in Libya is constrained by instability resulting from insecurity, unprotected transaction as well as trust. Online shopping could become predominant source of shopping method, if the barriers associated with insecurity, trust and customer’s protection are tackled. Owing to the significance of e-commerce towards Libyan economic growth, this paper highlights the limitations associated with e-commerce transaction in Libya and proposes relevant steps towards overcoming these constrains. Relevance of integrating e-commerce in Libyan economic system is discussed with. Keywords: E-commerce, online shopping, security, protection, trust . I.INTRODUCTION E-commerce encompasses buying and selling of products...
Words: 2821 - Pages: 12
...Malaysian E-Commerce Websites Compliance of X.509 Certification Standard in the Implementation of Third Party Certification in Malaysian E-Commerce Websites Syahida Hassan Mohd Khairudin Kasiran Graduate Department of Information Technology Universiti Utara Malaysia, Sintok Kedah, Malaysia syahida@uum.edu.my mkasiran@uum.edu.my Abstract The concept of trusted services forms a key issue for any kind of electronic services. Third Party Certification (TPC) endorsement has been used as one of the methods to instill consumers’ trust. Creating initial trust through implementation of TPC is very important because the consumer has a tendency to trust brand names.. This paper looked closely at the implementation of the TPC in Malaysia which reveals that there are many problems related to the implementation of these seals. Problems like the awareness of merchants on the important of third party seals to their business, unverifiable endorsement, misleading link, unauthorized use of logos and no endorsement at all are still there in Malaysian environment. Based on this fact, the paper will focus on how far the implementation of third TPC is complied with X.509 certification standard. The output of this study can give an important background on the current implementation of TPC and be used as a basis of initial evaluation for business opportunity as a service provider for this kind of certification in Malaysia The fast rising number of broadband user also give significant changes in E-Commerce...
Words: 4718 - Pages: 19
...Abstract Online shopping or e-commerce is developed rapidly and has a gigantic impact in globalization. Many consumers around the world start to trade products or do business using this system. The most crucial factor for consumer who shops online is trust. Grabner-Kraeuter (1989 p.43) states “Trust can serve as mechanism to reduce the complexity of human conduct in situations where people have to cope with uncertainty”. This paper tries to analyze that which method can be use by online merchants to increase their consumer trust. Various action and tools are introduced to increasing customers’ trust and verify the website information. Amazon.com is chosen to be the case study. The reason behind this is the popularity and reliability of the website and it is ranked in the top30 website in the world. Introduction Figure: E-commerce market size from 2004 to 2014 Source: Euromonitor, International Telecommunication Union; A.T. Kearney analysis E-commerce is now widely used and has a huge impact in globalization The graph above shows the upward trend of e-commerce market size which increasing respectively since 2004 and from now on the trend is also estimated to be rising due to the benefits of it. There are significant reasons behind that why majority of people use this method of trading. First of all, consumers can trade goods easier than by traditional shopping. Consumers can obviously gain convenience when they shop online since they can purchase or sell products...
Words: 2265 - Pages: 10
...interaction on the internet. Online communities is one of many new ways consumers are generating content and networking with other users. Successful businesses are aware and are capitalizing on the new means of spreading the word-of-mouth of their ventures. Social media facilitates the social interaction of consumers, leading to increased trust and intention to buy (Christensen, 2014). The Internet and mobile technologies have brought markets closer to the utopian state of perfect information by reducing the information asymmetries between sellers and buyers (Granados, 2013). Corporations are taking advantage of the advancement of the internet and social media. Social media’s popularity has afforded the public the opportunity to interact without the need for physical meetings. The internet is transformed to a social environment by introducing social media, such as LinkedIn, FaceBook, Twitter and blogs, where consumers can easily share and access information. Social Media Online communities and social networking sites are an effective means of social interactions and sharing information. Social networking sites take center stage in e-commerce in the current environment, where consumers make social connections and participate in cyberspace. Today’s consumers have access to many different sources of information and experiences, which have been facilitated by other customers’ information and recommendations. This is an important point as customer involvement through social...
Words: 2218 - Pages: 9
...IEEE International Conference on e-Business Engineering A CASE STUDY: ADOPTION OF INFORMATION TECHNOLOGY IN E-BUSINESS OF UNITED ARAB EMIRATES Fahim Akhter College of Information Technology Zayed University Dubai - United Arab Emirates fahim.akhter@zu.ac.ae Keywords: Abstract: Electronic Commerce, Internet, Online Shopping, United Arab Emirates This research conducted to identify factors that affect e-commerce adoption among people of United Arab Emirates. The focus of this research is to discover at what extent security and privacy factors contribute to the adoption of e-commerce. This study has been designed to explore why online shopping is growing so fast among some users, and so slowly among others. 2051 questionnaires were distributed by using different media such as email and Internet to the subjects and received back only 21% questionnaires from respondents. The result shows that all of the independent variables played important roles in determining the adoption of e-commerce and created a gap between users who are adopting e-commerce and those who have not. The finding also shows that there are two significant factors, making an impact on the adoption of e-commerce, which are the user’s educational background and their understanding of security features implemented by the vendors. 1 INTRODUCTION The United Arab Emirates (U.A.E) has made major efforts to establish itself as an e-commerce hub in the Middle East region and established itself on a par...
Words: 2563 - Pages: 11
...QUIZ 1: Explain the benefits and limitations of E-commerce. Ecommerce or electronic commerce: involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be specific Ecommerce would be buying and selling of goods and services and transfer of funds through digital communications. THE BENEFITS OF USING E COMMERCE Benefits to Organizations • Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe. • E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information. • E-commerce improves the brand image of the company. • E-commerce helps organization to provide better customer services. • E-Commerce helps to simplify the business processes and make them faster and efficient. • E-Commerce reduces paper work a lot. • E-Commerce increased the productivity of the organization. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way. Benefits to Customers • 24hour support. Customer can do transactions for...
Words: 976 - Pages: 4
...development of these areas. This study aims at identifying the problems that are caused by ICT in the application of electronic commerce and electronic business in rural Nigeria. The paper will point out these limitations and give solutions to each, thereby ensuring a smooth development process. The following limitations were found: System scalability and available customers, fraud and identity theft, delivery time and uncertainty, trust and customer satisfaction. Key words: Electronic commerce, Electronic business Methodology: The method used in this research is Internet research and personal observation. Solutions To The limitations Of E-commerce And E-business According to Wikipedia: “Electronic commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. It is more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and service”. Wikipedia also stated: “Electronic business may be defined as the application of information and communication technologies (ICT) in support of all the activities of a particular business” This type of business has many disadvantages that deprive people of its advantages especially those in the rural areas” E-commerce and E-business are very important ICT tools that can help businesses and organizations...
Words: 2345 - Pages: 10
...Cash-on-Delivery in India’s E-commerce Abstract – The online retail service is growing in the emerging market such as India. The online retail companies launched Cashon-Delivery (COD) to create trust of e-commerce in India. This helped many companies to penetrate in Indian Market. However, to the online retail company COD service has added additional burden such as direct and indirect cost of the transaction, high working capital requirement, efficiency management of COD ecosystem and payment hassles. According to Ernst & Young (E&Y), COD accounts for 50 to 60 per cent of online transactions in India. To reduce the contribution of COD in the online transactions without affecting the number of sales the online retail service providers need to understand why does the customer use COD as a mode of payment. The purpose of this research is to understand the factors influencing the customers to use COD as a mode of payment. Keywords – E-commerce in India, Cash on Delivery, Challenges in cash on delivery, COD users, but is still below world averages. This shows the immense potential that the retail category holds in India with online retail filling the distribution and convenience gap. The e-Commerce and allied companies have also turbocharged the e-Commerce growth engine by introducing innovative business models, by introducing technological innovations and by offering convenient payment options most popular being the COD. Cash-on-delivery has been one of the key growth drivers...
Words: 3764 - Pages: 16
...Electronic Commerce Charanpreet Singh Sullivan University Abstract E-commerce revolution is increasing day by day with thousands of new customers joining in everyday for shopping goods and services online. But still in today’s age of internet, some of the barriers exist which hampers the growth of E-commerce. Few of such barriers are Lack of trust, language & culture and infrastructural issues. A joint effort is required to put in place a proper process by which these issues can be addressed so that the effects are minimal. Lack of trust (Werthner, 2001) It is very important for the businesses to establish trust with their customers but the online businesses which exist through online websites have anonymity and it is hard to establish then said. The existence of business through website and lack of physical presence at a place is a factor which affects a person’s trust in a company. The issue of anonymity can be explained by an example that no one can know only through a website that how established a bank is only through their website and unless and until one trusts a bank they will not become a customer with the bank. Therefore, companies really need to have a plan to how they can make their customers trust a business. Also, when designing a website it is very important that we address all the needs of the customers in a good manner so that they do not get an impression that this company does not provide the services which the customer are looking for. In E-Commerce...
Words: 977 - Pages: 4
...1.Introduction With the Internet coming into picture, e-business has now become an easy way for interaction between firms and their customers. The Internet era has added a lot of value to the supply chain by helping firms to carry out a cost effective business, transfer of information between companies, suppliers and customers. The impact of e-business on supply chain integration can be seen mainly on four key points: information integration, effective Planning, workflow coordination &new business model. A virtual enterprise is formed when various autonomous companies come together and act as a unit by tightly integrating their business processes by the means of IT & ICT. A contract is an agreement built on the fundamentals of mutual commitment for cooperation, between two or more parties that binds those parties. In a B2B, e-business contract is a formal agreement between a buyer and seller for managing negotiations and validate operations. It is signed to address the issues of fraud and working on specific terms and conditions. It should describe both parties involved, definition of specific terms used in the contract, the jurisdiction under which the contract is valid and enforced, duration of the contract and the terms and conditions for each transaction. Therefore this calls for the need of formal norms for process-oriented contracts and specifies a criteria to form basis for synergy between the private view and public view of a contract on the fundamental lines of open...
Words: 4693 - Pages: 19
...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...
Words: 16013 - Pages: 65
...referred to as e-business, which is the utilization of information and communication technology (ICT) in conduct business on the internet, not only buying and selling but also servicing customers and collaborating with business partner. Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers. Trust is the key to the success of e-business and lack of trust is the significant problem on the way to e-business success. During every business transaction, the parties involved should feel trust with the people and the companies. It must be established and managed continuously in business transaction activities. Security services offering protection from security threats are: identification, authentication, confidentiality, integrity, access control, and non-reputation. Today, e-business applications are doing more than ever to increase efficiency and improve relationships with partners and customers. In relation to trust and internet technologies, consumers are concerns about two main things which are privacy and security. This study is focusing on the issues relating to e-business, such as its importance, issues and the solutions in order to overcome related to the security and trust in e-business. Importance of Trust regarding e-business Traditionally, the issue of trust was addressed...
Words: 1212 - Pages: 5
...Starting a Business Online Abstract E-Commerce has become one of the emerging business trends towards the provision of services. The ability of a business to realize the impacts and benefits of e-commerce to the business is central towards the evaluation of its necessity. The evaluation process requires an entrepreneur to undertake a SWOT analysis in order to understand the advantages and disadvantages of e-commerce. The e-commerce industry is experiencing a variety of issues that range from culture, trust, language, infrastructure, and the government regulations. Addressing these issues is central to the viability and feasibility of the business in the market. Designing of a mechanism of addressing the issues that relate to the regulations governing the operation of businesses is necessary. The online crimes also present a major challenge for most of the businesses. Therefore, this paper elucidates strategies and operations that help in the analysis and addressing various issues that relate to the e-commerce industry. Question 1 The SWOT analysis is a major tool that can be used in the evaluation of the advantages and disadvantages of engaging in e-commerce. Strengths A major strength is the expansion of the global market commanded by the store. It expands the geographic retail market for the clothes stores beyond the Jersey Shore boardwalk to areas all over the world. Another strength is the time-saving potential of e-commerce both for the store and the customers. It...
Words: 1356 - Pages: 6
...The Challenges of Trust Management Your Name CMGT/430 July 10, 2011 Distributed Trust Management What is distributed trust management? Why do business-to-business (B2B) companies like EBay and PayPal have such profitable success with online transactions? Do people trust business-to-consumer (B2C) methods? Have intra-enterprise applications matured to the level of satisfaction that company executives come to expect? These questions are at the forefront of consumers and business minds alike. This paper will focus on the ideas and cornerstones that inter-organizational companies rely upon; namely, trust. All of these questions boil down to trust and the business models we, as a community, have come to expect. The definition of trust, as it relates to the enterprise, is explained this way: A type of expectation that alleviates the fear that one’s exchange partner will act opportunistically (Aoyama & Ratick, 2007). Ratnasingam & Phan define trust as “A psychological trait found in trading partners who are willing to pursue relationships or interdependencies to achieve a planned goal” (Ratnasingam & Phan, 2003). Trust within the business realm becomes something that is taken for granted if there are no checks and balances between both organizations. One has to be careful not to abuse the trust given to a specific company like Cisco Systems or Amazon. Maintaining a competitive and working relationship is paramount to the...
Words: 1312 - Pages: 6
