Analysis of Consideration of Security Parameters by Vendors on Trust and Customer Satisfaction in E-Commerce

Analysis of Consideration of Security Parameters by Vendors on Trust and Customer Satisfaction in E-Commerce

Hodjat Hamidi (Department of Information Technology, Faculty of Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran) and Saba Moradi (Department of Information Technology, Faculty of Industrial Engineering, K. N. Toosi University of Technology, Tehran, Iran)
Copyright: © 2017 |Pages: 14
DOI: 10.4018/JGIM.2017100103
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Abstract

Exchanges in electronic market accomplishes through electronic channels. An electronic market is a meeting point for both the shoppers and the sellers. This article aims for the impact of cultural and security orientation on the customer perception of the seller's ethics regarding the customers' loyalty. A heuristic method is applied to examine dimensions of customer perception of seller ethics. The research community is selected out of a large group of sale experts and directly through electronic survey platform in electronic markets. According to the article findings, electronic customers are of high tendency to better understand the electronic seller's ethics, and the customer's higher perception of electronic sellers increases the shopping. On-time and correct electronic seller's responses affect positively on the customers' loyalty. The consumer loyalty regarding the ethics of electronic retailer's scale is greater completeness to evaluate consumer perceptions of e-retailers' ethics than scales using a one-dimensional approach. This study further examines both individualism and collectivism at the individual level, which is rare in the existing literature.
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Introduction

Electronic marketing in parallel with physical marketing, lets the potential electronic retailers and electronic shoppers to exchange and agree upon information about the goods or services (Asgary et al, 2002). The electronic marketing according to the electronic commerce model, can be divided into different categories such as: independent market, public market and horizontal market. An electronic marketing with the purpose of creating an efficient shopping environment which is directed by a group of shoppers, is called buyer-driven electronic marketing (Bailey et al, 2007; Brenner et al, 1977). The seller-driven market is managed by a number of suppliers. The vertical electronic marketing provides an online access to trade vertically from up to down and vice versa, and the horizontal market connects retailers and shoppers of various industries together. Business activities such as electronic buy and sale are done without any physical interactions between sellers and shoppers. Since the customers may be worried about the goods they cannot see, touch, and feel, the trust is a key to overcome internet shopping obstacles. To view internet and electronic interaction effects on the customer satisfaction, the sales relationships and seller ethics are generally considered. The recent improvements on technology and social media affect the customers’ behavior. Individuals and business organizations start setting up a new business model called social commerce (Chevers et al, 2016). In order to increase consumer reliance, Electronic retailers use those types of social media programs such as, Facebook, YouTube, and Twitter which support the mutual interactions between online shoppers, thereby increasing the sense of social presence (Gajendra et al, 2014). Electronic shopping environments and non- electronic shopping environments create different experiences even for the same product. In electronic shopping environment, the customers are interacting with a virtual space which includes a technical relation without physical relationship. In this type of shopping, usually the shoppers cannot potentially purchase for not being present in the market and for not having a proper perception of the product. In other words, there may be great differences in expectations regarding the perception and the reality of an intended product function. The elements of unreliability and electronic shoppers’ dissatisfaction are as follows; after-sale service, electronic security in transactions and privacy protection are the private information and the electronic sellers’ credit. A measurement scale for customer perception of electronic seller ethics may have 4 dimensions; security, privacy protection, no fraud, and reliability. The scale affirms the great complexity of measurement scale in seller ethics in the one-dimension method. Privacy and security are known always as two important ethical worries of internet users and is studied in most of the researches. Besides, consumer’s perception of how to study the ethics from websites, increases the competition among traders and the customer expectations. The physical environment does not affect the electronic shopping, but interaction or cooperation in social groups attracts consumer’s attention (Frost et al, 2010; Hamidi, 2016). Rapid growth of electronic marketing has increased the number of electronic sellers and electronic shoppers (Hamidi, 2017). The loyal electronic customers are very profitable for electronic sellers. Therefore, a useful way to understand the electronic customer orientation toward sellers, is to examine the loyalty (Iyer, 2001). The consumer perception of the electronic retailers is defined as the consumer’s view about honesty and the company’s attempt to protect securities, a safe and fair environment, resulting in consumer’s profit protection (Johnson et al, 2016). Most electronic shoppers use data and technology protection systems to prevent individual business destruction against destructive persons. Electronic trade security mentions the consumers view about the security of the payment process, restoring mechanisms, and transferring all private information throughout the exchange process (Kakar, 2016). Using internet to purchase goods and services has several advantages. Internet enables the customers to trade in with the organizations, but the universal survey shows that using the internet for on-line purchase has the slow-rise process and the marketers consider lack of credit as the main on-line shopping obstacle. The customer’s unreliability is the significant obstacle when using internet shopping. The trust plays the main role of satisfying and achieving the expected results for online interactions. Figure 1 shows the interaction period model of electronic commerce.

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