The Role of Consumers' Trust in Online-Shopping

Many consumers are sceptical or suspicious about the functional mechanisms of electronic commerce, its intransparent processes and effects, and the quality of many products that are offered online. This paper analyses the role of consumer trust as a foundation for the diffusion and 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 focuses on conditions of e-commerce transactions that are relevant for the formation of trust problems. Drawing on the theory of information two types of uncertainty are described: system-dependent and transaction-specific uncertainty. Finally different activities and instruments are described and categorized that Internet firms can use to establish and maintain trust.     

Using response behaviour theory to solicit survey participation in consumer research: An empirical study

Abstract

The purpose of this article is to report on research that examines survey participation rates (i.e. response rates) for personal interview surveys where solicitation for participation is based on different theories of survey-response behaviour in two culturally distinct countries. Field experiments were designed to investigate the extent to which the theories of exchange, cognitive dissonance, self-perception, and involvement/commitment can influence potential respondents to participate in a personal interview survey in Australia and Hong Kong. The results show that there were significant differences in Australia with the theory of self-perception having the strongest impact on survey-response behaviour, while cognitive dissonance has the least impact. In contrast, the effects in Hong Kong were not significant. This study adds to the limited empirical research regarding why consumers participate in surveys, particularly personal interview surveys. The theories are applied at the self-introduction and invitation to participate, which is a crucial stage in the potential respondent's decision about participation.     

Electronic Commerce

Abstract

Africa has been beset with a plethora of problems stemming from the legacy of colonialism and the current political conflicts across the continent. These developments have made it difficult to strengthen the telecommunication infrastructure, the bloodline of commercial activity. Electronic commerce (EC) has become one of the most popular topics of conversation in the commercial sector. EC, which is a technological framework bolstered by the ubiquitous Internet, has given commercial enterprises an opportunity to increase the flow of transactions, overcoming the barriers of time and distance. This paper examines EC strategies and suggests that its implementation is possible in Africa by analyzing several variables to determine appropriateness of both the technical framework and the execution of strategies.     

Consumer education and the OECD electronic commerce consumer protection guidelines

This paper explores the implications of e‐commerce transactions and the lack of consumer protection regulation on consumer educators and curricula. The discussion is divided into five sections: conceptualizing e‐commerce; the juggernaut of e‐commerce; consumer education defined, especially consumer protection in the electronic market‐place; the Organization for Economic Co‐operation and Development (OECD) 1998 Ottawa conference on electronic commerce; and the implications of this fluid market and policy context on consumer educators. Empowerment of the consumer, the ultimate objective of consumer education, is a total challenge in the global electronic market‐place, but a challenge that must be embraced by staying informed, becoming a consumer advocate, as well as educator, and remaining ever vigilant as curricula are developed for the domestic consumer transacting in an electronic global market.     

Challenges for B-to-B Doctoral Programs: A Commentary on “Doctoral Programs in Business-to-Business Marketing: Status and Prospects,” by Erwin Danneels and Gary L. Lilien

ABSTRACT

The fast-paced development of the Internet as a mechanism for efficient communication and transactions has led to the growth of diverse forms of electronic business-to-business marketing linkages. Such linkages have profound implications for the development and exploitation of newer constellations of supply chains as well as for the re-design and re-orientation of existing ones. Newer sources of value and competitive advantage enable firms to better manage their existing relationships with suppliers and customers. Moreover, firms are now equipped with better tools for engaging in advantageous alliances with other firms possessing complementary resources.

While various Internet-based business-to-business (B2B) business models have failed in recent times, most existing B2B exchanges can be classified into a general typology based on the type of linkages, access and governance. Three major types of B2B buyer-seller linkages are identified as “net marketplaces,” “industry consortia,” and “virtual private networks.” This paper evaluates the comparative properties of these major types of exchanges and identifies various antecedent factors that would impinge on a firm's decision to participate in any of these types of exchanges.     

Optimal timing to invest in e‐commerce

The timing of investment in e‐commerce remains hotly debated in both the academic and investment communities. This study develops a framework for analyzing the optimal timing for a company to invest in e‐commerce for conducting its business‐to‐business (B2B) or business‐to‐consumer (B2C) transactions. This study applies a real option theory to assess a new risk–reward dynamic for investing in e‐commerce. The numerical results demonstrate that the optimal timing of investment in e‐commerce depends on uncertainties regarding future cash flows and the opportunity costs associated with e‐commerce. Implications with regard to the behavior of Internet companies from a financial perspective are discussed. © 2006 Wiley Periodicals, Inc.     

Forecasting Internet Penetration in China: The Effect on E-Commerce

ABSTRACT

It can be seen that the Internet penetration rate in China has undergone a dramatic increase in the past three years. Beginning in June 2002 China became the third largest user of the Internet in the world following the U.S. and Japan. The Internet penetration rate in China has increased 61.0 percent from June 2001. This study provides a language comparison of Chinese versus non-English speaking Internet users by comparing Chinese Internet usage to: Spanish, Japanese, German, French, Scandinavian, Italian, Dutch, Korean and Portuguese. The four forecasting models to predict future Internet penetration in this study are: the Linear Trend Model, the Quadratic Trend Model, the Exponential Trend Model, and the S-Curve Trend Model. The study provides various forecasts of Internet penetration in China including dial-up and leased line Internet users. The forecasted results indicate that the Chinese speaking Internet user population will be the largest population by the end of year 2005 among all of the selected ten non-English speaking language Internet users' populations. The forecast of nearly 16 million leased line users reveals the necessity involved with choosing the correct leased line connection in China. These forecasts should be useful with respect to conducting electronic commerce with the China Internet market. The design of multi-language Web sites in order to conduct international Internet commerce is also analyzed.     

Smart Cards in the Internet Commerce Era

Abstract

Smart cards are the latest wave in the world of electronic commerce. The latest development in smart cards technology is its Internet related applications, which are mostly related to the support of online payment systems and its infrastructure. This paper propels the role and potential impact of the smart card and provides insights on implementing new technologies. It is intended to develop plans and discuss solutions and navigate through the myriad of processing investment decisions impacting the anticipated widespread acceptance of the smart card in the Internet commerce era. Managerial implications for Internet commerce are addressed as well.     

Understanding unethical retail disposition practice and restraint from the consumer perspective

This research expands marketing's knowledge regarding unethical retail disposition (URD). URD is a type of consumer fraud, whereby consumers purchase an item of merchandise with the intent of using it and returning it to a retailer for a refund. The authors first employ grounded theory methodology to develop an original framework illustrating why consumers engage in either URD participation or restraint; next, they demonstrate empirical support for the framework. The authors support and augment previous URD research by reporting that URD offenders employ eight neutralization techniques to remedy personal guilt associated with committing the fraudulent behavior. This research also takes a novel approach by illustrating that consumers describe six motivations underlying URD restraint. Most concerning for retailers is that four of the six reasons for restraint are tenuous. Thus, consumers who refrain from URD may be easily swayed to participate in this illicit behavior. The authors posit that URD may represent a means by which consumers express disdain and mistrust for contemporary retailers, contributing to the societal discrimination that retail organizations owned by “middlemen minorities” engaged in trade and commerce often experience. © 2010 Wiley Periodicals, Inc.     

The Impact of Wireless Application Protocol (WAP) on M-Commerce Security

Abstract

Mobile commerce (m-commerce) is providing commercial services that are accessible using mobile devices, typically a mobile phone. The main advantage of such services is their high availability, independent of physical location and time. Yet the move to create a wireless version of the Internet means a new set of problems. As with the existing fixed Internet, the biggest problem is security. Despite the fact that operators are announcing or rolling out Wireless Applications Protocol (WAP)-based information and transaction services, the platform has gaping security holes. Because security is the most important feature to the success of m-commerce, this paper studies the security concerns on wireless commercial Internet and presents the features and solutions of WAP to the security of electronic transactions. Most importantly, this paper intends to draw corporate executives' attention to the strong impact of WAP on m-commerce security and the associated benefits to their companies.     

Antecedents to Online Purchasing–An Exploratory Comparison of Anglo versus Hispanic Consumers in the United States

ABSTRACT

This exploratory research investigates whether or not Anglo versus Hispanic consumers in the United States (US) differ with respect to purchase behavior on the Internet. As a new, ground-breaking innovation, the Internet represents an entirely new medium of exchange. In this study, we address whether or not the Internet has been adopted to the same extent and in the same way(s) among Anglo and Hispanic US consumers. Anglos and Hispanics represent the two largest segments of the US population and, curiously, little if any marketing research has compared and contrasted these two groups with respect to using the Internet to make commercial purchases. Extant theory and research in electronic commerce provide a basis to suggest that there may, in fact, be differences across these two US sub-cultures. Our findings reveal that the two groups do actually differ in this regard; the data also offer insights into these differences.     

What Drives Consumer Participation to Loyalty Programs?

Abstract

Little is known about the way in which different loyalty program attributes underlie consumers' intentions to participate in such a program. Based upon equity theory, the current study distinguished between consumer inputs (personal data release, participation cost, purchase frequency, participation exclusivity, and participation efforts) and outputs (program benefits, number of program providers, and program duration) as underlying attributes potentially affecting participation in a loyalty program. Using conjoint analysis, we explored how different levels within each of these eight attributes affect consumers' intentions to participate. The study holds major implications for the design of successful customer loyalty programs.     

The effect of buyer feedback scores on internet auction prices

One of the major roles of Internet intermediaries is to help build trust between buyers and sellers for efficient and safe transactions. The buyer feedback system started in online auctions as one of the trust‐building mechanisms on the Internet. As the buyer feedback system is becoming a standard trust‐building mechanism in other e‐commerce sites as well as in online auction, there is an increasing interest about the impact of the buyer feedback system. On the top of recent studies investigating the effects of buyer feedback scores on auction prices, we provide empirical validations using more sophisticated methods. In this study, we tested the relationship between buyer feedback scores and bidding prices using an empirical data set from a leading consumer‐to‐consumer (C2C) Internet auction site. Data analysis results show a strong empirical validation of previous studies. Negative feedback is a significant price discount factor in the final auction price on the C2C Internet auction market. The results also show that potential buyers are more sensitive to negative feedback when they are considering buying inherently risky products such as used or refurbished products.     

Determinants of consumers' repeat online buying of groceries

Abstract

This study developed and empirically tested a model for understanding what factors determine repeat buying behaviour of already experienced online grocery consumers. Data were collected from 198 consumers who currently buy groceries via the Internet. The obtained Lisrel results suggest that consumers' attitude towards online grocery buying is positively affected by perceived offline physical effort and negatively affected by offline shopping enjoyment. Multi group analysis shows that the strength of these relations differed across several consumer characteristics. Also, it was found that a perceived high Internet grocery risk does not form an action barrier for consumers who already have a positive attitude towards online grocery buying. The results also indicate that consumers may hesitate from repeat online buying if they are faced with high online complexity. Implications and future research directions are discussed.     

Consumer behaviour in cross-border e-commerce: Systematic literature review and future research agenda

Cross-border electronic commerce (CBEC) was developed from traditional e-commerce to cater to the growing demand for online transactions among global traders. Consumer behaviour is one of the most important topics that multistakeholders (e.g., e-commerce platforms, entrepreneurs, governments and third-party service providers) need to understand to develop CBEC. Although for over a decade studies across disciplines and regions have explored various consumer behaviours and their factors in CBEC through diverse research methods and theoretical lenses, the current literature is still fragmented and lacks consolidation of past contributions. In the present study, we conduct a systematic literature review based on 40 CBEC studies to present an overview of the current research status of the field. This study analyzes research contexts, theoretical applications and methods, and unifies a CBEC definition as a benchmark for future research. More importantly, we employ the Stimulus–Organism–Response (S–O–R) framework to categorize factors into the inner and outer CBEC ecosystem stimuli, cognitive and affective states, and approach and avoidance behaviours, and to generalize two consumer behavioural patterns to provide a comprehensive understanding of consumer behaviours in CBEC. With the proposed future research directions, we believe that this review can serve as a fundamental and informative guideline for researchers to continue advancing knowledge of the field.     

Consumer vulnerability and exclusion: A study of carers in the tourism marketplace

Abstract

Carers – a growing, multidimensional, context-specific, yet transient community (three in five of the population during a lifetime) – have been largely neglected in the marketing literature. Focusing upon the impediments to tourism participation this consumer group faces, the paper explores issues of carer engagement, consumer vulnerability, and societal exclusion from the perspective of two carer groups: senior carers and cancer carers. Conclusions reached demonstrate how challenging many carers find tourism-marketplace engagement and confirm carers can indeed be considered as vulnerable consumers. They introduce us to a range of circumstances that prompt exclusion and call upon policy makers to recognise the existence of multiple categories of vulnerability in accommodating the needs of this consumer. A future research agenda is outlined. This argues for the need to review the wider implications of the findings beyond the geographical constraints of this study, and to explore also their application to other vulnerable consumers.     

The Effect of Internet Expertise on Offline Expectations

ABSTRACT

Because the Internet enhances consumer control over online marketing transactions, more expert web users are hypothesized to generalize this web expertise to their expectations of offline service encounters. This hypothesis is supported for consumers with moderate web expertise as compared to those with little web expertise. However, web users with high levels of expertise have lower expectations of offline encounters than those with moderate expertise. The lower expectations of the most expert web users are likely to be due to a lower level of involvement with offline service encounter, a greater awareness and use of online information by the most expert, and possibly a greater propensity to distinguish between online and offline encounters.     

A review of national arrangements for consumer influence in product safety standardization in the EEA

Abstract

Cooperation between the EC and the EFTA countries in the European Economic Area (EEA) should, among other things, enable consumers to participate in and influence standardization. The EC New Approach presupposes the elaboration of standards to interpret or fill out the special safety provisions of various directives. The notion of safe products according to the Product Safety Directive can be supported by drafting relevant safety standards. Swedish experiences in some product fields show that results can be achieved through expert consumer participation. Consumer influence on standardization is a matter of great importance for product safety in the future.     

Community Banks and Internet Commerce

ABSTRACT

This study examines the factors affecting a community bank's decision to develop Internet-based applications using survey data from representative community banks and secondary data regarding the financial institution's financial performance data (Call Reports). The results from a logistic regression show that there is a significant size effect in developing web and Internet commerce applications. Other factors determining Internet commerce activities include IT costs, use of PC-banking options, and the perceived competition in the local commercial loan markets.     

Outshopping Through the Internet: A Multicountry Investigation

ABSTRACT

From the viewpoint of trade leakage for local retailers, Internet shopping bears a similarity to traditional outshopping, in the tendency to shop outside the consumer's immediate shopping areas. Yet, the relationship between consumer outshopping?related characteristics and preference for Internet shopping has received little, if any, research attention. We investigate this relationship using survey data from consumers in three countries—the United States, India, and Korea. According to the results, consumer in-home shopping proneness and perception of time pressure are positively related to consumer preference for Internet shopping mode. In contrast, consumer support for local shopping and orientation toward time management are negatively related to Internet shopping preference. Other findings and managerial implications are also reported.