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BUILDING TRUST THROUGH E COMMERCE WEBSITES 3

BUILDING TRUST TROUGH E-COMMERCE WEBSITES

Bose Mithra Nalla

Wilmington University

TABLE OF CONTENTS

1.0 Introduction……………………………………………………………………………4

1.0.1 Thesis statement………………………………………………….…………….5

2.0 Methodology……………………………………………………….………………….6

2.0.0 Population………………………………………………………...………………6

2.0.1 Sample size determination………………………………………...………………7

2.0.2 Sampling techniques………………………………………………...…………….7

2.0.3 Type of data collected……………………………………………...……………...8

2.0.4 Data collection instruments………………………………………………………...8

2.0.5 Validity and reliability…………………………………………………………...9

2.0.6 Data analysis methods…………………………………………………………....9

2.0.7 Ethical considerations…………………………………………………...………...9

3.0 Literature review and proposal……………………………………………….….……..11

4.0 Iteration………………………………………………………………………………14

4.0.1 Planning. ……………………………………………………………………..14

4.0.2 Action…………………………………………………………………………14

4.0.3 Observation……………………………………………………………………15

4.0.4 Reflection.………………………………………………………………………16

5.0 Summary ……………………………………………………………………………17

6.0 references……………………………………………………………………………..19

Introduction

Thesis statement: e-commerce website information is essential in building trust with customers during their business transactions.

Providing crucial information for customers is essential for any e commerce website in influencing trust among its users. Lack or missing of necessary information especially pertaining certain products and services may deter consumers from purchasing or acquiring services from the given websites. Since consumers' access e commerce products and services on a digital platform either through their smart phones, tablets, laptops and other devices providing all information in clear and straightforward manner is critical influencing consumers to trust the website and give them a go ahead to purchase products or seek services from the website. Availability of information on the e commerce websites assures consumers of transparency and accountability of the website hence they develop trust and will make purchases from the site (M.Coles & Smart, 2011).

E commerce websites provide a platform for consumers to buy goods and access information online. Most of the online transactions lack any form of social interactions making it hard to have in external influence on the consumers. Therefore, information provided by these websites is the key source of influence for a consumer to decide whether or not to make any business transactions. Customer interface is among the most crucial aspects of e commerce websites, making the interface easy to navigate, flexible, convenient and comfortable encourages the consumers to use the specific site (OECD, 2016). Content design includes the type of content and the format provided by a website. Websites with attractive content design are likely to influence consumers to make transactions.

Navigation and structure designs that are easily accessible attract the attention of customers and build their trust in using the websites. Different aspects of an e commerce website should instill trust in consumers through credibility and competence on the information provided. Ensuring confidentiality and security of personal information provided by customers also plays a crucial role in encouraging trust for more customers to use the websites. E commerce websites encourage loyalty and trust among their consumers by keeping their client's information private and confidential. Gaining trust and loyalty assures these websites of better competition from other websites offering the same products or services. Creating a unique brand and maintaining good reputation influence the trusting consumer have on a website. Providing the right information on a particular product impact the trust customers have on the websites. If a client purchases a product only to find out later the information provided is wrong, there are likely to lose confidence and avoid making any purchases with the websites.

Using famous people such celebrities on video ads of an e commerce websites to provide information on products and services offered is likely to encourage customers to build trust with the site. People tend to trust a platform when the information is communicated to people they admire and respect (Adams, 2015). Customers testimonials are also essential in building confidence among customer in using a given e commerce website.

Methodology

Determining the importance of the information provided by e commerce websites in building trust among consumer’s calls for both qualitative and quantitative research. Qualitative research aims at understanding how information about e e-commerce sites influences trusts among consumers. The research will involve the use of qualitative tools collection, questionnaires in particular. The discipline aims at understanding the criteria customers use in deciding on business transaction through e commerce websites. Besides the use of questionnaires, the research will use observations and statistical analysis to gather more information (publishers, 2011). The information needed is descriptive hence the need to use the different research tools. Action research makes it easy for the researcher and ensures maximum possible action to be achieved from the gathered information. The primary purpose of the action research for this project is to understand the significance of information on e-commerce websites on building consumers trust and gain new insights from the data acquired.

Population

Population in research refers to the total number of participants achieved through headcount of all characteristics the study aims at finding. Using the right population ensures the results and findings are about the right category of elements in the society. Since the aim of the study is to identify the significance information provided by e-commerce websites on building clients trust, the population for the study is all online customers who use different e commerce websites to purchase or acquire services.

Sample size determination

The sample to be used in the research to be used for the research will be determined by the below model.

n = z2pq/d2

n : represents the desired sample size

z: the value of correspondents to the 95% confidence interval which is 1.96

p: the probability of an event

q= 1-p

d: the degree of precision of error to be made which will be 5%

Sampling techniques

Purposive sampling was used to conduct the research. Purposive sampling represents some non-probability methods. The technique is also known as selective, subjective or judgmental; it mainly relies on researcher's judgment on selecting the population to be used for the research. Under this approach the population has been studied is quite small. The main purpose of purposive sampling is not to select respondents randomly but to create a sample with the intention of generalizing out of the target population (Pranee, 2013). The main goal of this technique is to focus on particular characteristics of the target population that are of interest and best suited to be part of the research.

Using this sampling technique researchers will be able to collect reliable information essential for the study since the information is gathered from the key participants in each section of the research area. Action research uses actions and review of action goes through a continuous process until desired outcomes are achieved. The outcomes from an action research ought to be accurate and be well-known. The people involved in the action plan will influence the outcome. The process of involving people in the process of planning the action makes them flexible and more responsive to the situation. Action research is also suitable since it can adapt to any situation change. Critical reflection of actions allows gaining of yields in the research outcome. The action is implemented, and the outcome reviewed once achieved. Changes are amended during the process of iteration. Iteration involves an action after a critical reflection on actions that failed. Understanding the shortcomings based on reflection, actions will be implemented in the plans and put to test.

Type of data collected

Primary data refers to first-hand information obtained from a study; the information can be obtained from surveys, interviews, and direct observation. The most common methods used to obtain primary data include observation, experiments, interviews, and questionnaires (Krisch & A.Sulivan, 2011). The primary source of information collected during the research is through a questionnaire. The questionnaire will be given to the sample meant for the research, and all the participants are expected to provide credible answers to the all questions. The information gathered from the questionnaire will be used to attain important information about the study and the specific objectives of the research.

Action research will use qualitative data collection tools to obtain information during the research. The information provided ought to be qualitative for the purposes of providing the needed output and give an explanation about the research. Quantitative and qualitative data tools are essential in the action research process.

Data collection instruments

Data collection can be defined as a systematic approach to attaining and measuring information from some sources to have a clear picture on a particular issue of interest. Data collection enables the research to have a clear understanding of the issue at stake, attain answers to relevant questions, and evaluate outcomes. Accurate data collection is important in ensuring the integrity of the study and making an appropriate decision (M, 2014). The primary instruments in data collection include surveys, focus groups, interviews, experiments, and observations. The research aims at achieving at using a structured questionnaire to gather the necessary information. Structured questionnaires refer to series of questions asked to participants in a study with the aim to attain statistically information on an intended topic. Properly constructed and appropriately administered questionnaire are a vital source of data for research. Researcher assistant will assist in giving out the questionnaires to the proposed sample.

Validity and reliability

Validity can be to the extent in which a data collection method measures correctly what its intended to measure. Its impossible for any method to be 100% valid, hence validity is measured in terms of degrees. As a process, validation entails collection and analysis of data to assess the accuracy of a data collection method. Validity can either be external or content, external validity refers to the extent in which results from a research can be generalized from a group of participants to a population. Determining external validity for an instrument, lastly involves directly from sampling. Content validity on the other hand involves determining the appropriateness of the content provided by instruments. Reliability can be defined as consistency. Though it’s impossible to determine if an instrument for data collection is consistent. Determining validity and reliability in qualitative research can be difficult even in the event where participants are convincingly used.

Questionnaires might be utilized for the study, validity, and reliability will be attained by ensuring the content is relevant to the objectives of the research. If the information is viable and reliable it will be used to for the intended purposes of the research, however on occasion, the information is inaccurate or inconsistent it will be rejected and the process repeated. Research instrument shall be pre-tested to assist in identifying questions that are ambiguous and contradictory.

Data analysis

The research intends to use both quantitative and qualitative data analysis techniques to analyze the data gathered. Using the two techniques ensures each minimizes the shortcomings of the other. Data analysis can be defined as the process of systematically applying either logical or statistical techniques to describe, illustrate, condense, recap and evaluate data. The information gathered was well coded and grouped under specific objectives they were addressed. Analysis of the data is done using the SSPS version 20 software. Data analysis crucial in dealing with bias that might interfere with the conclusion.

Ethical considerations

Ethical consideration can be termed as one of essential aspects of a study or research. According to Bell and Bryan 2007, researchers ought to apply ten principles while conducting research. One of principle states that participants should not be subjected to any harm (Brayan & Bell, 2007). Regarding credibility information o, the principles states, any misleading information or wrongly represented primary data findings should be avoided. The researchers intend in informing all the authorities in the area of research and seek permission to conduct the research. The intention of the questionnaire will be explained to all the participants. The information gathered from all the respondents will be confidential and private. No participants will be coaxed to take part in the research, and involvement will be voluntary.

Literature review and proposal

Introduction

Trust is crucial aspects in influencing consumers to make transactions on e commerce website. Information is a key aspect of cultivation customer relationship and trust in any given business. Websites that provide customers with necessary information about their product and service offering are likely to gain the trust of the customer resulting in a transaction. Making information available in transparent manner speaks highly of the websites transparency which is likely to attract more consumers to purchase a product from the site. E commerce websites can utilize different aspects about information to instill trust among their consumers and possibly make customers. They include customer testimonials,

Customer testimonials

Different organization and business have used customer manifestations as a way of building trust with their online clients. Based on a model by Kim 2008, a positive reputation attributes to consumer building trust with a particular brand. Customer testimonials are a prove of the capability of a business to satisfy its obligation especially since the information is provided by a consumer who has previous experience of their services or products. The model is based on a psychological phenomenon referred to as social proof. Customers tend to build trust and endorse a product or service when the information comes from their peers. And in turn increases their willingness to make a transaction (Misani & Tencati, 2007). Also, customer testimonials are relatively cheap hence the website does not have to incur much. The figure below represents trust achieved through customer endorsements.

I trust similar to me

People similar to me trust the online store

I trust the online shop

Transparency in providing information

Asking consumers to share information about themselves whether it's through their makes feel vulnerable and are likely to avoid using the websites. However, when a website is an upfront on how they intend to use the information shared by their consumers it assures consumer its trustworthy (Pearson, 2017). A survey carried out by market research firm Janrain discovered that 77 % of buyers are likely to trust online businesses that explain why their information is being collected and the end use of the information their provide. E commerce all the content information provide is open and honest. Buyers are likely to trust a site that willingly accepts its shortcomings.

Instilling security measures

A secure website and trustworthy customer care providers to handle customer personal information are critical in building trust. E commerce websites ought to be transparent on the security measures their site offers for the consumer's mind to be in peace. Explaining the trusted payments gateways for any websites is critical in ensuring the customer’s details are secure. Also, stating the charges customers will incur after a purchase is crucial, nothing destroys the trust consumers have on a website like hidden cost. Having a trusted commercial seal is a sign of good business dealing and will encourage customers that the websites are a good place to shop. Use of SSL certificate for encryption guarantees consumers of secure connections. All elements of security ought to provide security policies that encourage consumers to trust the websites. With the new era where cyber security is a threat to most organization and individual, e commerce has to put security measures to ensure that clients information is kept private and confidential. Otherwise, in any case, the information has tampered they are likely to lose the trust of their current and potential clients.

Accessibility through customer care services

Customers may want to make inquiries on delivery cost, time, and refund policies. Having this information eliminates doubts on a customer on purchasing provide or requesting a service. However, if the information is not clarified customers feel less comfortable to purchase a product or make any form of transaction with the website. Websites can utilize the different social media platforms to interact with their clients (Ammon, 2017). A study carried out indicated that 88% of consumers are likely not to buy goods from websites that respond to their compliant on social media. Quick response of customer’s complaint cultivates a healthy relationship which in turn builds trust between the website and its clients.

Conclusion

Information provided by e commerce website can be the game changer for any business. Building trust involves providing all crucial and essential information about business. Establishing trust can break or make any online business. Customer testimonial are key way of building trust with new clients as while as attract potential customers to the business. Since people are likely to trust manifestation of their fellow peers on particular online shop or websites. Using testimonials from customers can be very fruitful in building trust since the information provided is out of an experience. Putting security measures in place encourages customers to make a business transaction without feeling threatened. Good security policies assure clients on confidentiality on personal information shared, and this propagates trust with the website. Customer care services are important in dealing customers inquiries as well as eliminating any form of doubt they may have regarding purchasing a particular product or making a business transaction.

Iteration

Refers to the systematic and repetitive process in qualitative data analysis. The process involves a sequence of a task carried out similarly and implemented in multiple faces. The processes involved four phases which included planning, action, observation, and reflection. The phases are discussed below (Crabtree, 2009).

Planning

This is the most significant step that involves establishing essential elements in building up a successful web sites. The elements to be considered should remain in relation to building trust with customers. Trust can establish from different perspectives. Trusting involves having confidence in someone or a process. Trust involves having positive elements which in turns helps to instill trust among the tended people. Different researchers established different explanations to define trust and how organization and firms can develop it among its clients. Trust can be categorized on different contents and context it’s meant to be used. The term relates to other virtues such integrity, credibility, and reliability.

Findings indicate that trust remains the core challenge in online businesses. Privacy is the focus on establishing trust among online customers. Communication is vital in establishing trust among online users, particularly when customers are required to use they credit card to purchase a product or request a service. Websites can have consistent principles that help in developing trust among their customers. Such principles help in building trust among online customers who can attribute to the success of the website (Kang & Hustvedt, 2014). Elements of trust can take up different dimensions and can study in different perspectives. Understanding trust in the different can a play a crucial role in innovating ways to cultivate among online users.

Action

Under this phase, researchers aim at gaining an overview of the concepts which are crucial in building trust in the development of websites. E commerce websites are digital platforms with different disciplines that are key in instilling trust among customers, security policies and content design are among aspects that influence the trust in online users. Disciplines such as management, psychology, and philosophy can be used to better understand the concept of trust and how to instill among customers. Trust can only be achieved when websites put a lot of effort and resources to influence its target group to believe in them.

Developing trust between an online business and customers is essential. The positive consequences of trust for e commerce websites include loyalty and increased purchases. Aspects such responsibility, trust, attitude, and testimonials influences the transactions customer are willing to make through a given websites. A study carried out in the U.S with a population of 303 consumers, and after the data was analyzed, the results indicated that consumer's perception on online businesses efforts to maintain transparency in its online activities affected the consumer's trust and attitude towards the websites and influenced their perception to buy from the site. Building honest relationship can be beneficial in ensuring the success of a website. Employing different mechanism to build trust is a critical process that website ought to learn how to establish.

Observation

Consumers will develop trust for a website by observing the activities of the website. Websites that are consistency are likely to gain attention from online users and influence them to make a purchase. Providing the same services and products is likely to inspire a consumer to build trust around the website compared to when the website changes the products it offers. Offering different products in short period rises question that can greatly affect customer's trust on a given trust. Different elements of website inspire consumers trust, when a customer can easily navigate through websites or when the content design is easy to comprehend, consumers are even compelled to purchase from the particular website. Unlike in most business to business commerce where a relationship is established before the transactions, an online business needs to instill trust among their consumers first via their websites' interface.

Trust has over the years been are an important virtue for organizations and other businesses. Building trust among consumers is the role and responsibilities of every employee of a given organization. Trust helps an important role in increasing the commitment of consumers to purchase a particular product or services offered by a given website. Over the years, it has been observed that consumer tend to be loyal to websites which guarantee online businesses competition to other business that offers the same services or products.

Studies relating to e commerce especially those that focus on issues about factors and aspects such as privacy, security, cyber threats and control about trust suggest, customer, are likely to trust any website that takes the mentioned factors seriously. In case any of the mentioned factors are not well addressed, people are liable to avoid making any transaction with the websites in fear of losing their money and exposure of important personal information. The outcome of building trust among consumer involves increased business transactions as well as continued loyalty.

Reflections

Visible benefits are easily obtained more efficiently to ensure customers can easily access the website. The main focus of the research was on the arrangements that assisted in distribution and switching platforms. Long term commitments can be formed by establishing discretion in transactions and relation exchange is performed between the website and the customers during all the transactions. Elements of trust are an ongoing process until the transactions performed being stopped. Certain traits assist in strengthening the relationship among consumers. Critical thinking, competency, and problem-solving can be used in business transactions and regularly monitored for successful implementation of the business process.

Costs for transactions performed intra and inter organizations can be monitored and reduced. Trust can enhance the business performance and improve all the operations to provide it efficiently. Trust and governance structure which can enhance and increase the effectiveness of transactions any point time. Relationships and trust can provide more satisfaction to its customers and provide a commitment that can have some research provided regarding the trust elements. All the distribution channels are properly monitored so that the relationship that can be monitored regularly.

Summary

Establishing trust with a customer is crucial for any organization or business. E-commerce websites have little interaction with their consumers especially on face to face platform which makes it hard for them to develop and building trust among their customers. The research paper offers a detailed explanation of the significance of the information provided by e commerce websites. Under the methodology, the paper explains different research techniques, methods, and the purpose. The literature review justifies the necessity of making information available to customers using any e commerce website and the different procedures e commerce can use to provide information with the aim of building trust among their clients. Iteration offers different phases that the action research undertook in identifying the importance of trust and how to develop it make customers in the e commerce websites.

References

Adams, M. (2015, March 12). Three Ways to Build Customer Trust. Retrieved August 9, 2017, from Forbes: https://www.forbes.com/sites/yec/2014/04/22/three-ways-to-build-customer-trust/#1d43363622b8

Ammon, T. (2017, April 13). Seven ways to Build E Commerce Trust through Content. Retrieved August 9, 2017, from Hub Spot: https://blog.hubspot.com/ecommerce/build-ecommerce-customer-trust-through-content

Brayan, A., & Bell, E. (2007). Business Research Methods. New York: Oxford University Press.

Crabtree, C. D. (2009, June 12). Iterative Sampling. Retrieved August 13, 2017, from Robert Wood Johnson Foundation: http://www.qualres.org/HomeIter-3827.html

Kang, J., & Hustvedt, G. (2014). Build Trust between Consumers and Corporations: The Role of Consumer Perception of Transparency and Social Responsibility. Journal of Business Ethics, 253-265.

Krisch, G., & A.Sulivan, P. (2011). Methods and Methodology in Composition Research. New Jersey: SIU Press.

M, R. K. (2014). Research Methods. Journal of American Association of Planning, 104.

M.Coles, G., & Smart, W. J. (2011). Building Trust in Online Customers. Boston: Southern Cross University.

Misani, N., & Tencati, A. (2007). The Impact of Corporate Social Responsibility on Customer Trust. Business Ethics, 9-11.

OECD. (2016). Customer Trust and Market Growth. Mexico: OECD.

Pearson, K. (2017, May 23). How can Online Retailers Build Trust With Their Customers? Retrieved August 9, 2017, from Blubolt: http://www.blubolt.com/2017/05/25/how-the-retailer-can-build-trust-with-their-customers/

Pranee, L. (2013). Qualitative Research Method. New York: Oxford University Press.

publishers, J. A. (2011). Research Methodology. New Delhi: APH Publishers.

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