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Essay / Article Review: Electronic Commerce - 1168
The World Wide Web (WWW) provides many opportunities for old merchants to conduct their businesses online. E-commerce is a new form of online exchange in which most transactions take place between parties who have never met. As in traditional commerce, concerns about trust have been identified as a barrier to customer engagement in e-commerce and a barrier to e-commerce success. In the traditional market, a typical customer would be limited to choosing from a few local retailers. In the Internet age, one can choose from a multitude of online retailers located all over the world, leading to the breakdown of borders. A physical separation between buyer and seller leads to an increase in the role of trust in online retail. Although the total volume of business conducted on the Internet is growing, there is a significant abandonment rate among online shoppers. Most customers are hesitant to buy online or even leave the e-marketplace due to lack of trust and concerns about privacy. Consumers are simply not willing to trust their personal information to e-commerce. Yet most online retailers don't focus on building and maintaining trust in their websites as part of ongoing relationships with their customers. Some online retailers do not respect the privacy of customers' personal information and secretly collect customer information and sell it to third-party marketing companies. Since my research thesis is that trust is an important factor in facilitating online transactions, it is necessary for me to investigate the role of trust in e-commerce and its impact on business decision making. online purchase. A...... middle of paper ......far from conclusive. More studies should be undertaken, better measures should be developed, and larger samples should be used to improve our understanding of the exact relationship between perceived risks and decision making. Despite some methodological shortcomings, the article provided some insights for online retailers to reduce risks on their websites by focusing on the sources of risks and consequences of online risks. However, recommendations to reduce measures of perceived risk in the reviewed article are based on author opinion or application of theories from other researchers and not on research findings. Works Cited Gutter, M., Saleem, T. and Gross, K. (2003) “Are There Gender Differences in Risk Tolerance or is it a Question of Measurement? “Consumer Interests Annual, Vol. 49, no. 1, p... 1-12