E-commerce and trust

Topics: Electronic commerce, Electronic business, Customer service Pages: 5 (1287 words) Published: May 6, 2014
INTRODUCTION
E-business refers primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm. E-business does not include commercial transactions involving an exchange of value across organizational boundaries. E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term. Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities. Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Exploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, has already discovered how to use the Internet successfully. Activities using e-Business tools include:

trading of goods or services online, such as eProcurement, primarily through websites electronic retailing (eTailing)
use of the Internet, intranets or extranets to conduct research and manage business activities website marketing
online communications, such as email
online training for staff (eLearning)
e-Business tools include:
mobile phones
personal digital assistants (PDAs)
electronic data interchange
file transfer
facsimile
Video conferencing, Internet, intranets and extranets.
Trust indicates the confidence in the certainty of future payment for property or goods received. That means on party is willing to rely on the actions of another party; the situation is directed to the future

IMPORTANCE OF TRUST IN E-BUSINESS TRANSACTION
Trust is something that an e-business transaction must strive to achieve over a period of time. Acquiring customer trust depends on many things that an e-business controls. It is achieved by providing an IT-capable customer valuable information about the product in a timely manner. Transactional and relational factors can influence an online shopper and build trust to support a successful business relationship with them. Customers want to feel good about each and every one of these aspects before they form the opinion that the business is trustworthy. A customer may have confidence in the firms’ products or services, but not in the e-commerce system. E-business transaction supports the proposition that consumer trust is related to customer satisfaction, and identifies the factors that develop trust and encourage customers to engage in online business transactions. Importance of consumer trust to the success of e- business transactions is indicating trust must be a function of: • The privacy information provided by the consumer at the point of purchase. • The confidence the consumer has in the supplier.

• The perceived quality of the goods based on the content of the supplier’s website. • The confidence the consumer has in the reliability of the supplier’s delivery service. • The security provided at the point of receipt (e.g., will a package left by the delivery service on the customer’s door step be safe). • The confidence the consumer has in the supplier’s customer service function. In case of privacy trust is so important in e-business. These are Privacy is among the top concerns of Internet users.

E-business sites often require passwords and use electronic signatures, an electronic form of identity verification. Companies can track customers’ shopping and viewing habits through cookies. Customers usually prefer that companies do not share their personal information. Merchants have responded by joining privacy organizations. Privacy protections may soon become legally required.

Employees also have concerns that employers are monitoring their...
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