Article Review: Electronic Commerce

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The World Wide Web(WWW)has been providing extensive opportunities for

merchants to conduct their businesses online. Electronic commerce is a new

form of online exchange in which most transactions occur among parties that

have never met. As in traditional exchanges, concerns about trust have been

identified as a barrier to customer for engaging in e-commerce and a barrier

for the success of electronic commerce.

In the traditional market, a typical customer would be limited to choosing

from a few local retailers. In the age of the internet, one can choose from

a verity of online retailers located anywhere in the world, leading to

breakdown of borders. A physical separation between the buyer and the

seller, leads to an increase in the role of trust in online retailing. Although, the

total amount of business conducted on the Internet is growing, there is a

significant dropout rate of online shoppers, Most customers hesitate to

purchase online or even leave the electronic market because of a lack of trust

and concerns about privacy. Consumers are simply unwillingly to trust e-

business with their personal information. Yet most web retailers do not focus

on building and maintaining trust in their web sites as part of ongoing

relationships with their customers. Some e retailers do not respect the privacy

of customer's personal information , and they secretly collect customer

information and sell it to third party marketing firm.

Given that my research thesis is that trust is an important factor to facilitate

online transactions, it is necessary for me to investigate the role of trust in

electronic commerce and its impact on online purchase decision-making.

A...

... middle of paper ...

...far from being conclusive. Further studies must be

undertaken, better measures must be developed, and larger samples should

be used to improve our understanding of the exact relationship between

perceived risks and decision making. Despite some deficiencies in

methodology, the article has provided some insights to account for e retailers

to reduce risks in their websites by focusing on the sources of risks and the

consequences of online-risk .However, the recommendations to reduce

perceived risks measures in the reviewed article is based on opinion of the

author or applying theories from other researchers and not on the research

findings.

Works Cited

Gutter, M., Saleem, T. and Gross, K. (2003) “Are There Gender Differences in Risk Tolerance or is it a Question of Measurement?,” Consumer Interests Annual, Vol. 49, No. 1, pp. 1-12

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