On Consumer Confidence in the Online Store

Transcription

1 ISBN (Print), (CD-ROM) Proceedings of the 2009 International Symposium on Web Information Systems and Applications (WISA 09) Nanchang, P. R. China, May 22-24, 2009, pp On Consumer Confidence in the Online Store Sun Lu Management School Harbin University of Commerce, Harbin, China Abstract The convenience brought by the online store is more than a physical store, but the development of China's Internet store is also in its infancy, at present, there are a number of related thesis for the network which study the trust, but the result observed in the research is related to most of the trust before buying and e-commerce environment of trust, Therefore, the primary focus of this study is aimed at investigating the factors affecting, and the impacts, of consumer trusts in the overall online purchase process, rather than only those in the pre-purchase stages. The reasons why Online Store is not trusted in the occurrence are: anonymous transaction, the initial trust which was not established, and payment mechanisms, and mode to receive commodities, and the entire management of this study was raised by domestic and foreign scholars who study the impact of trust, the trust put forward a B2C framework: it stresses the overall impact on the trust in the network store, to make the recommendation between customers, then to establish a network to maintain the customers loyalty, then it will create the largest corporate profit. In this study, the model contains two main levels: the purchase of pre-factors (such as e-commerce brands, safety, etc.), and after the purchase of factors (such as after-sales service, etc.). Through two kinds of levels to explore ways to affect the trust and from the empirical research found that China's current Online Store in the obstacles, to explore how to increase consumer business confidence. Index Terms e-commerce, online store, confidence, B2C I. INTRODUCTION Broadly speaking, the Online Store mainly refers to the business entity which uses Internet technology on the Internet to sell products and services, the network is not simply a shop on the Internet through e-commerce site, the network clients can be store business, they can also be individual consumers, according to different clients, Online Store can correspond to the scope of B2B e- commerce, it can also correspond to the scope of B2C e- commerce, this paper is mainly related to main research areas of B2C e-commerce consumers shop on the network, that is the issue of trust. At present, there are a number of related papers to study the trust in the network, however, but the result observed in the research is related to most of the trust before buying and e-commerce environment of trust, therefore, this study hopes to make the flow-way trust in the overall online purchase process as the focus to explore the confidence-building processes to influence today s trust. Thus brings great importance to enterprises, Young Scholars Sciences and Technique special Foundation of Heilongjiang province,(qc06c041); ( ); (G200606). and promotes service for enterprise. The reasons why Online Store is not trusted in the occurrence are: anonymous transaction, the initial trust was not established, and payment mechanisms, and mode to receive commodities, this study includes the entire management raised by domestic and foreign scholars who study the impact of trust, the trust is put forward in a B2C framework: it stresses the overall impact on the trust in the network store, to make the recommendation between customers, and to establish a network to maintain the customers loyalty, then it will create the largest corporate profit. In this study, the model contains two main levels: the purchase of pre-factors (such as e- commerce brands, safety, etc.), and after the purchase of factors (such as after-sales service, etc.). Through two kinds of levels to explore ways to affect the trust and from the empirical research found that China's current network of stores in the obstacles, to explore how to increase consumer business confidence. II. LITERATURE REVIEW Supply chain is comprised of suppliers of raw materials, assemblies, wholesalers, retailers, transportation companies and end users. The interacting factors to be considered, either for parallel supply chain or for perpendicular supply chain members, include pricing strategy, control of quantity of purchase, inventory control, degree of free-flow of information, control on production capacity, quality control, etc. Due to the interactive feature between upstream and downstream companies, i.e., competing relation exists under a parallel supply chain and conditional cooperative relation under a perpendicular one, formulating a game mode wholly conforming to the real world environment shall be a complex and formidable mission. For convenience s sake, this article restricts the modes to a two-tier one and three-tier one, and adopts unitary time period for time factor, and assumes that raw materials and finished products are all alternatives to each other. The paper uses retailers as the major parameter for analysis, which also serves as a converging point in the modes, in an attempt to find out the most appropriate price and quantity of production,purchase. III. RESEARCH MODELS AND METHODS A. Research Framework Foreign scholars in the study of trust, most of them focused on the user environment, science and technology level, etc. In order to study in depth consumers 2009 ACADEMY PUBLISHER AP-PROC-CS-09CN

2 psychology, the study adds the factors of purchase in order to reach the consumer loyalty. Therefore, this study with the development of e-commerce explores the concept of trust, referring to the trust structure proposed by Koufaris and Hampton-Sosa (2004) and, combining with a general framework for e-commerce, the development of confidence-building framework study proposed by Kalakota and Whinston (1997). This study mainly makes the B2C books consumer as the research objective, and the network of stores to buy as influence factors. Kalakota and Whinston (1997), respectively, defined the two parties of the flow network from the consumers to manufacturers. The consumption processes can be divided into three parts: "pre-purchase assessment," "purchase behavior", and "Post-purchase behavior"; in the internal operations of manufacturers processes have "pre-sale program," "product / service production and delivery ", and" after-sale interaction "three steps. According to this framework, this study analyzes today's B2C integration with other papers, discussing the insufficiency in current research and the research fields to improve. Kalakota and Whinston (1997) proposed a general framework for e-commerce, which become a common framework for electronic commerce after continuous improvements in research. In this study, e-commerce environment for the development of this map is divided into five large, including: cognitive security, corporate reputation, pickup / replacement / maintenance, to explore e-commerce in today's China the factors affecting consumer confidence through these three parts. B. Hypothesis Corporate Reputation : Businessmen are known to increase consumer trust (Jarvenpaa 2000; Pavlou2003), Cobb et al. (1995) from the brand value of the angles that when consumers want a series of similar products, the completion of the selection of a commodity transaction, consumers are likely to choose his or listen to wellknown manufacturers of brand products. Today's consumers are brand-oriented, the same as consumers in the network stores. Gefen (2002) pointed that the trust, although the concept of a single concept, but a multistructure, was proved to have a number of confidencebuilding level, including the ability, integrity, honesty and mercy, and pointed out that consumers did not only wander in the online procurement, and they were subject to businessmen and the ability to be trusted by the impact, while the purpose of purchase is subject to the overall business confidence, honest and trustworthy affected. Therefore, the proposals to examine the hypothesis of this study are as follows: H1: consumer awareness of corporate reputation and consumer confidence in the size of the network into a positive relationship between the store. Safety Awareness : Cognitive security refers to the industry in the network to provide context to strengthen consumer confidence statement (Kim and Benbasat 2003). Daughtrey (2001), Mckenna (2001) andstahl (2002) have pointed out that the electronic stores have a responsibility to all kinds of information technology to build its trading mechanism in order to protect consumer privacy, to ensure transaction fairness and equity, to protect consumers and to enhance consumer confidence in e- shops. Kim and Benbasat (2003) pointed that the security policy should include personal information (the customer name, , address, credit card information, etc.), quality and price guarantee (product, delivery, etc.), customer service (consultation, Q & A, etc.) with the operators of the reliability (financial, strategic alliances, etc.). Wang et al. (2004) proposed that a third party certification (seal of approval), Privacy Policy Disclosure (privacy disclosure), disclosure transaction security (security disclosure), Return Policy (return policy) and the award-winning Web site can enhance consumer confidence website in deed. Therefore, this study made the following hypothesis: H2:cognitive network consumers store transaction security and consumer confidence level network into a positive relationship between the stores. Pickup, Replacement, Maintenance : The difference between physical store and virtual store is the largest replacement and maintenance. Whether the resulting makes the consumers fear the online shopping is the biggest difference between a physical store and a virtual store. Therefore, this study raised the pickup, replacement and maintenance levels to explore the relationship and trust. This study aimed to collect the goods, replacement and maintenance aspects of the proposal to examine the hypothesis as follows: H3: cognitive network consumers shop in the pickup, replacement, maintenance services and defective goods and consumer confidence in the network in response to store into a positive relationship. Consumer Confidence:Online transaction which has not uncertainty and information is not symmetric. As a result, mutual trust between buyers and sellers is necessary (Gefen 2002; Mcknight and Chervany 2002), and many papers indicated that consumer confidence in e-commerce was one of the key factors (Wang and Emurian 2005; Grabner-Krauter and Kaluscha 2003). In this study, Koufaris and Hampton-Sosa (2004) defined the initial trust, and therefore assumed as follows: H4: consumers with good network of stores can increase confidence in the consumer Web store into a positive relationship. C. Questionnaire Design In this study, the questionnaire is divided into three parts, the first part of the basic information for users, the second part for the purchase of the former level, including corporate reputation, cognitive security, the third part for fetching the goods after purchase, replacement and maintenance; the second part of the third part to the use of a five-point Likert scale Lee, respectively agree with (5) to not agree (1). D. Object and Sampling Method The main contents of this study were to explore the online consumer confidence, non-online consumers trust online shopping factors, and to book online consumer 420

3 products, as well as non-online consumers as research subjects. In order to collect the required analysis of relevant information, the study issued a questionnaire online questionnaire mining and non-online survey to obtain the necessary follow-up analysis of samples, hoping to understand the people for the trust factor in online shopping. To conduct a sample survey, since all do not know online consumers and non-mother-the number of online consumers, it will be the follow-up sampling rate of nonmachine (Non-Probability Sampling) of convenient sampling (Convenience Sampling) approach to the Progressive conduct data collection, convenient sample for this study is the most feasible way, it adopted two kinds of ways to carry out simultaneously, as follows: First, with the major discussion areas, Dangdang, private e-shopping sites, where consumers are pleased to go shopping, browse in completing the questionnaires and give feedback. Second, non-online shopping consumers should be potential future network shoppers, at various shopping malls to ask the Consumer completing the questionnaires. E. Analysis Method This study will be used principal component analysis (principal component analysis), to corporate reputation, cognitive security, pickup, replacement, maintenance, consumer confidence to carry out factor analysis, and simplified through factor analysis of variables, and then into conduct regression analysis. Regression analysis confirmed the letter of the questionnaire after discussion with the school began to carry out verification of hypothesis. When we explored only two or more variables in the relationship between the direction and size, you can use correlation analysis, if it is based on one variable to predict another variable, it is the use of regression analysis. Regression analysis, correlation analysis must be based on the reliability of any forecast which is variable depending on the relationship between the strong and somewhat different degree. IV. DATA ANALYSIS A. Samples In this study, a total of 1,000 questionnaires were distributed, net of 368 questionnaires were invalid, the final actual total of 632 valid questionnaires were effective recovery rate of 63.2%, samples, mainly from DangDang, the End of the World communities, private e- discussion boards, non-online consumer survey as the main source of the sample. Basic data analysis, mainly for the effective recovery of this study was to conduct a sample described in statistical analysis, and samples have a comprehensive understanding of the structure. In some of the major demographic analysis of "gender", "age", "Education Level", "occupation", "monthly disposable spending," "the network frequency of consumption," "contact network time", "product delivery way "," payment consumption patterns "," time spent online per week, "a total of 10. User's sex ratio example, men accounted for 64%, female 36%, mainly due to male than female preference Book products. Therefore, it gives rise to the phenomenon of men more. Age distribution, up to age distribution in the years old accounted for 41 percent, followed by year-old accounted for 26%. Education Level on up to college and university students accounts for 46 percent, followed by high school (grades) for 35%. Occupational distribution of up to 43% of the students, followed by the information industry accounted for 26%. Students, most of the major for students, easily access to information technology. Monthly disposable income to below 9999 yuan accounted for 37 percent, followed by yuan accounted for 21% of disposable income for a maximum of 9999 yuan, mainly due to sample a few secondary school students accounted for 43%. Network consumption frequency to the need of purchase is about 55%, followed by the occasional purchase of 23%, mainly due to 3C products for highpriced commodities, when the actual needs of consumers will buy the goods. Network of contacts over time to seven years accounted for 29 percent, followed by five - seven years accounted for 28%, a sign that the sample has a network of knowledge, made a sample survey has a certain degree of credibility. Product delivery approach to the 7-11 store goods accounted for 40 percent, followed by home pass with 25%. Payments to ATM debit consumption patterns accounted for 30 percent, followed by 29% in cash on delivery weekly Internet time to 37% accounted for 24 percent followed by B. Reliability and Validity Analysis This section of the questionnaire for reliability and validity exists in order to assess. In validity, this study was to use factor analysis to be tested in reliability while using Cronbach's α coefficient to test. This study measured Cronbach's α coefficients ranged from 0.7 to 0.91, should have a certain degree of reliability. Validity (validity) refers to the validity of test scores, it is method often used for factor analysis (factor analysis). Scale Discriminant whether to carry out factor analysis, one often used by researchers to determine indicators for the Kaiser (1970; 1974) the concept of "all appropriate sampling of the volume of a few" (Kaiser-Meyer-Olkin measure of sampling adequacy; referred to KMO or MSA). In this study, the use of factor analysis of the largest variance (varimax) to carry out law-dc-ac shaft rotation matrix factors, and factors in accordance with the Cronbach's α value of not less than 0.5 and the eigenvalue greater than 1 criteria are carried out in factor extraction. In this study, the KMO value is excellent value for 0.943, This study also makes use of principal component analysis method, respectively, at all levels of the independent variables to carry out the testing construct validity. All levels of criteria factors are followed Hair et al. (1998) choice of the three proposals, these proposals were: 421

4 First, various factors eigenvalue (eigenvalue) must be greater than 1. Second, variance with the greatest spin axis method, the check load factor (factor loading) of the absolute value of more than 0.5 persons; three to 22 between the factors measured load difference is greater than 0.3. Therefore, this study questionnaire has a considerable degree of expert validity and construct validity. C. Questionnaire Design This study will make use of multiple regression analysis to explore: "corporate reputation", "security awareness", "pickup, replacement, maintenance," since a number of variables for "consumer confidence" effect. Table 1 for the results of multiple regression analysis, each independent variable regression coefficients and the estimated value of the significant test results, is used to understand the argument which could be interpreted several trust variables were 64%, 65%, that there must be reliability. Collinearity in the area of inspection, to observe the regression model, each of the VIF values of variables are less than 3.2 (VIF more than 10 representatives of collinearity). There is no collinearity problem; variables can be placed in the same regression model. N =414, F= , adjusted R2 =0.64 *p<0.01 **p<0.05 N =237, F= , adjusted R2 =0.65 *p<0.01 **p<0.05 V. CONCLUSION AND DISCUSSION The results of this study will help businesses understand consumer online shopping for the trust factor. Although the model of this study can not include "trust" of all possible factors, but three levels of "corporate reputation", "cognitive" and "pick up, replacement,repair" abnormal amount of change may be interpreted as 64 percent, said our model has been included in the majority of factors that affect the confidence of the important deciding factor. Safety awareness of the importance of trust to influence factors (Table 1 Beta = 0.23, Table 77 in the Beta = 0.23). Online users do not with the shopping site transaction experience, on-line users to attach great importance to security because the fear of credit card account numbers and other information leakage, so the majority of Internet users are still not willing to conduct business online and motivated behavior. In the network transaction process, the user can not understand clearly of the whole process. Therefore, manufacturers need to explain the process and how it will protect the safety of consumer transaction. When the consumer perception of enterprise can improve its protection of personal privacy, businesses take good security measures to ensure and provide adequate information, consumers will have higher confidence. In terms of security, scholars have put forward a third-party certification, in the third-party certification may help users to increase transaction security trust, and future research can be explored to increase third-party certification. Corporate reputation as an important factor in the impact of confidence (Table 1 Beta = 0.16, Table 17 in the Beta = 0.19). Marketing in the enterprise market, the reputation and trust of the early results of research online, corporate reputation metropolis in line all become the significant factors giving impact on the level of trust. Online users learn about the items only from the site of the picture and text, and the entities have great store different, in the physical store on the user from the merchant's decoration, personnel, equipment and other businesses to determine the surface. Therefore, online merchants who have a good reputation can increase the desire of consumers to buy and a sense of trust. Pickup, replacement, maintenance as an important factor in the impact of confidence (Table 1 Beta = 0.15). Online shopping when there are problems encountered in goods, replacement, maintenance metropolis can not be processed immediately and consumers have to wait for the goods the delivery period, which most commonly encountered misuse in freight Tam or damage during shipment. Therefore, when consumers purchase online, will consider, in particular commodity in this respect. According to the questionnaire results of the analysis, long-term observation of "corporate reputation", "security awareness", "pickup, replacement and maintenance" are essential to establish a trust factor. To enable consumers to increase trust in the shortest possible time, the entire management of this study in the discussion area, consumers who purchase goods met during the deletion of e-commerce, put forward some suggestions for reference as follows, but the future for further verification recommendations: Reputation in the enterprise: a company's reputation should not only give consumers the impression that it is only large-scale business, we must let consumers happy to commend the business. Security on cognitive: for customers, if they understand the site, then they will carry out all activities, metropolis under close protection, so that consumers can feel at ease in online shopping; informed consumers 422

5 should pay attention to the risk of online shopping and how to hedge, and personal computers should be noted the work of anti-virus and anti-trojan horse. In pickup,for Cargo, maintenance: shopping sites have to indicate commodities warranty period, replacement, maintenance information, goods manufacturer warranty, delivery process and the attention that matters clearly; the best shopping sites can be tested whether the normal operation of goods before sending to consumers, to avoid disputes and the delivery of transaction costs; seven-day period has become a fundamental appreciation of quality assurance, the site should be made more attractive in after-sales service, with proof of ownership of the goods returned excellent handling ability, and let customers know when the purchased products or services are defective, the merchant can provide relief and compensation. ACKNOWLEDGMENT We especially thank Professor Cao Yu-kun and Professor Wang De-zhang for very detailed and valuable comments. However, all remaining errors are our own. REFERENCES [1] G.A. Akerlof, The Market for Lemons:Quality Uncertainty and the Market Mechanism, Quartly Journal of Economics,1970, 84(8), pp [2] S. Ba and P.A. Pavlou,, Evidence of the Effect of Trust Building Technology in Electronic Markets: Price Premiums and Buyer Behavior, MIS Quarterly,2002,26(3)pp [3] S. Bomil and H. Ingoo, Effect of Trust on Customer Acceptance of Internet Banking, Electronic Commerce Research and Applications,2002,1(3-4), pp [4] W. Cobb, J. Cathy, C. A. Rubble and N. Donthu, Brand Equity, Brand Reference, and Purchase Intent, Journal of Advertising,1995,35(3), pp [5] L. Corritore, B. Kracher and S. Wiedenbeck, On-line Trust: Concepts, Evolving Themes, a Model, International Journal of Human-Computer Studies,2003,58, pp [6] L.D. Chen, M. L. Gillenson, D. L. and Sherrell, Enticing Online Consumers: an Extended Technology Acceptance Perspective, Information and Management,2002,39, pp [7] T. Daughtrey, Costs of Trust for E-business, Quality Progress,2001,34(10),pp [8] F.D. Davis, Perceive Usefulness, Perceived of Ease of Use, and End User Acceptance of Information Technology, MIS Quarterly,1989, 13, pp [9] C. N. Dellarocas, The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback Mechanisms, Sloan School of Management [10] P.M. Doney and J.P. Cannon, An Examination of the Nature of Trust in Buyer Seller Relationships, Journal of Marketing,1997,61(4), pp [11] Doney, P. M., Cannon, J. P. An Examination of the Nature of Trust in Buyer-Seller Relationships, Journal of Marketing April 1997, 61, pp [12] Fishbein, M., Ajzen, I., Belief, attitude, intention and behavior: An introduction to theory and research, Addison-Wesley, [13] Gefen, D. Social Trust and the Adoption and Diffusion of Information Technology, unpublished Dissertation, Georgia State University, [14] Gefen, D. Reflections on the dimensions of trust and trustworthiness among online consumers, ACM SIGMIS Database (33:3), 2002, pp [15] Gefen, D., Straub, D., Managing User Trust in B2C e- Services, e-service Journal (2:2), Winter,2003, pp [16] Hampton-Sosa, W., Koufaris, M., The Effect of Web Site Perceptions on Initial Trust in the Owner Company, International Journal of Electronic Commerce,2005,(10:1), pp [17] Hosmer, L. Trust: The connecting link between organizational theory and philosophical ethics, Academy of Management Review,1995, (20:2), pp [18] Hunter, J.F., Schmidt, F.L., Jackson, G.B., Meta-analysis: cumulating research findings across studies, Sage,1982,Beverly-Hills. [19] Lewis, J. D., Weigert, A. J. Social Atomism, Holism, and Trust, The Sociological Quarterly, 1985, 26, pp [20] Koufaris, M., Hampton-Sosa, W. The development of initial trust in an online company by new customers, Information and Management,January,2004, (41:3),pp [21] Matthew, K. O. Lee, Efraim Turban. A Trust Model for Consumer Internet Shopping International Journal of Electronic Commerce Volume,Fall,2001, (6: 1),pp [22] Mayer, R. C., Davis, J. H. The Effect of the Performance Appraisal System on Trust in Management: A Field Quasi- Experiment, Journal of Applied Psychology,1999, (84:1), pp [23] Oliver, R. L. A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions, Journal of Marketing Research,November,1980, 17, pp