Internet

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The Internet has been available for public service since 1983. With it’s rapidly expanding popularity, the number of internet users has quickly risen to over fifty million in a four year period (Bingi, Mir and Khmalah, 2000). One of many advantages of Internet use is the potential and accessibility as a tool for electronic trade. Electronic commerce also known as e-commerce, can be referred to as the purchasing and retailing of products or services over an electronic system. It is increasing at an exponential rate. Credit Card Company ‘Visa’ reports the amount of internet use has increased rapidly from $600million in 1996 to $13 billion in 1999 and is expected to reach $100billion by 2003 (Tedeschi, 1998; Anderson 1997). Future business transactions seem to be transforming from in store shopping to online shopping (Kotler, 2000). Amazon.com was the first company who recommend books from in-store into the World Wide Web (Machlis 1998; Munk, 1999). The Economist (2000) noted the name ‘Amazon’ has become increasingly popular with e-commerce and it is one of the few brands recognised in the whole world. It is also the most visited site in the USA and top two or three in the UK, France, Germany and Japan.

According to the book ‘Jeff Bezos: the founder of Amazon’ written by Ann Byers (2006). The company ‘Amazon’ was incorporated in 1994, in the state of Washington. It was named after the Amazon River, one of the largest rivers in the world. The logo of Amazon.com represents a smile of customer satisfaction and hopes to have every product in the alphabet. It started online as an online book store in 1995 by Jeff Bezos and sold its first ever book on the 15th of July, soon expanding into a much bigger retail company and claimed to sell millions of different products to more than 6.3 million customers in over 160 countries. Amazon has been proven to be a highly successful business with the value of $35.3 million in 2003. Despite losses, Amazon’s net income in March 2011 was $201m.

Chuchinprakarn (2005) has found out trust is one of the key factors for successful e-commerce and for a success relationship between vendor and buyer. In e-commerce, trust can be described as a consumer’s ideas and expectations of the seller to be trustworthy and the quality of the products to meet these expectations. Trust is known to be the key factor to maximise online transactions for online retailer, as many consumers do not buy goods online because of their concern about online payment security, trustworthiness of the company and its lack of privacy policy. American Life Project reported 68% of online shoppers have issues disclosing personal financial information but only 48% had purchased online with a credit card; 3% reported they had been cheated by online vendors or their credit card details had been stolen (Fox, 2000). (The Economist, 2001), reported online vendors face the difficult challenge of building consumers trust so they will make purchases online from them.

For online retailers to enhance online trust, it is necessary to know what factors are likely to affect consumers’ confidence in e-commerce. Chuchinprakarn (2005) reported the theory of reasoned action (TPA) could predict behaviour intention such as intention to shop online. Studies have shown trust, confidence in using credit cards, influence of friends and past behaviour has had significant effects on online shopping behaviour. A model of trust for Electronic Commerce (MoTEC) was first developed by Egger (1998); It contains three components: the pre interactional filters ‘a factor where it affects consumers’ confidence in online retailers before any online communication takes place’; the interface properties of the web site ‘the appeal of the interface such as the branding and usability’; the information content of the web site ‘information about the risk in online transactions and seller’s privacy policy and confidential information’ The advantage of this model is that...
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