CONSUMER TRUST ON ONLINE BUSINESSES
1.0 Background of the Study
Online business may be defined as the utilization of information and communications technologies (ICT) in support of all the activities in the business.
Given the global nature of online transactions, an important question is whether trust and trust formation is different from culture to culture (2004).
The importance of consumer trust to the success of an online business is well documented in literature. Any business must attract possible customers and that task does not stop at that. Maintaining customer relationship by providing trusted and quality services will lead to a building of a business that does not only depend upon the money invested but also the trust of the customers. Creating a business through attractive and glamorous web sites is not sufficient, what is more important is the consumer satisfaction and the goodwill that is created in the minds of the consumer. People expect transparency when they wish to trade online. Being open to all queries and details will contribute to the building of trust. Full details about the aims and goals of the business, the contact details, customer care numbers should all be available in the online business site. All possible information clearly stating that the business is registered legally along with the license copy must be evident to ensure consumer trust. The payments methods must be definitely secured, as it will benefit both the customer and the business. As each country have different patterns and laws for different products it will be useful to the consumer when full details are provided (1998).
2.0 Statement of the Problem
How consumers trust online businesses is the main issue that will be tackled in this research. Examination on security and privacy risks related to the purchase of products as well as services done through online trading will be dealt with. What must the consumers look out for in an online business? What are the possible pitfalls that may lead to a fraudulent online business? Consumers do not settle on mere speculations of goodwill especially if it is their money involved. Many consumers are skeptical and suspicious about the functional mechanisms of electronic commerce, its processes and effects, and the quality of many products that are offered online so gaining the trust and faith of consumers must be the prime motivator of businesspersons online.
3.0 Research Objectives and Aims
This research aims to analyze the role of consumer trust as a foundation for the unparalleled acceptance of electronic commerce. Starting from a functional perspective trust is seen as distinct but potentially coexisting mechanism for reducing the uncertainty and complexity of transactions and relationships in electronic markets. The analysis will lead to a focus on conditions of e-commerce transactions that are relevant to the formation of trust problems. The study seeks to evaluate the practices that online consumers engage to in detecting fraudulent online businesses.
4.0 Research Methodology
This study will use the descriptive type of research. A descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study and to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research (1994). It is also concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing (1970).
Drawing on the theory of information two types of uncertainty in trusting online businesses will be used: system-dependent and transaction-specific uncertainty. Different activities and instruments will be described and categorized as to what Internet firms are using in establishing and maintaining trust.
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment