Question
Respond to the following questions in essay format:
• Why is consumer trust important in e-commerce? Compare traditional (non e-commerce) markets to e-commerce markets.
• Given the global nature of online transactions, why consumer trust differs across cultures?
The submission should have around 1000 words.
Answer:
Trust and Ecommerce
Trust has been variously defined by scholars and there is no single acceptable definition as at now. In this essay, trust in e-commerce is seen as the willingness to beliefs in respect of the fairness, goodness, ability, benevolence, honesty, predictability and dependability of the other party (McKnight & Chervany, 2002). To be productive and comfortable in life, individuals need to routinely place their trust in familiar environments (Xiong & Liu, 2003). The Internet and electronic commerce (e-Commerce) are not familiar environments which can be trusted blindly. Unlike traditional commerce, e- Commerce is more impersonal, more automated, provides fewer direct sensory cues, has less immediate gratification, entails more legal uncertainties, and presents more opportunities for fraud and abuse (Gefen et al, 2003)making it more difficult to build trust (Kim, et al, 2009). For e-Commerce to flourish, consumers must not be fearful that they will be cheated, defrauded, have their credit card numbers stolen, or receive poor quality goods or service. Vendors envision the Web as a viable alternative to traditional channels and a new arena