Ecommerce and Trust

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INDIVIDUAL ASSIGNMENT

E-COMMERCE AND TRUST

NUR DZALILAH BT MOHAMAD ZABIDI (PBS1332422)

E-COMMERCE (SIM5211)

DR. HALIYANA KHALID

PUTRA BUSINESS SCHOOL

APRIL 10th, 2015

E-COMMERCE AND TRUST

Introduction

E-commerce increasingly popular throughout the world especially in Southeast Asia (Singapore, Malaysia, Vietnam, Thailand, Philippines and Indonesia) that show a fast growing of Internet penetration in a trend based on statistic research conducted between year of 1991 until 2011 (CK Wong, 2013). In current research reported by UBS also estimates that the e-commerce conversion rate range for Southeast Asia is 0.5% to 1.0% in which near to global average of 1.2%. The emerging trend of internet and the advancement of the technology, has made e-commerce becomes one of the most important components of business strategies.

According to UK Government, e-commerce is not just on buying and selling product online but also involve the entire stage of the supply change; pre-sale and post sales, in which include the entire online process of developing, marketing, selling, delivering, servicing and paying for product and services. Hence, many companies either in B2B, B2C or even C2C taking this opportunity of e-commerce advantages to use e-commerce as the platform in their business.

From the facts and survey conducted by various team or researchers on e-commerce, it is no doubt that e-commerce is in its booming stage and has become a great potential tools in order to be success in business. However, as e-commerce becomes more popular and increasingly used as a tools for flourish the brick-and-mortar business, there is a challenges associate with e-commerce that need to be address.

The most arguable issues for e-commerce is pertaining trust and security (B. Maniam; L. Naranjo; and G. Subramaniam, 2012) which also has been the biggest concerned to the consumer. However, if trust exists, there will be no disputes on security since customer believe and confidence that the online site is secured enough to do any transaction especially while making payment and disclose some sensitive issues online (Diana Wang, H. Emuria, 2005). Thus, it is important for the business to fully aware of any security and others threats in order to gain the customers’ trust.

Trust and e-Commerce

Trust in the Oxford English Dictionary is defined as “Confidence in or reliance on some quality or attribute of a person or thing, or the truth of a statement”. Issa Najafi (2012) describe trust as the dependence on the integrity and ability of a person or thing and also briefly explained that trust been defined differently from physiologist perspective that viewed trust as a personal characteristics, sociologist perspective that form trust as a social framework and economist view in which trust has been an economic mechanism for selection. Another several definition of trust and e-commerce are as follows:-

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