Consumer Trust and Confidence in Internet Commerce

2001 ◽  
pp. 43-57
Author(s):  
Shahul Hameed
Keyword(s):  
Product Information ◽  
Personal Data ◽  
Business Environment ◽  
Consumer Trust ◽  
The Internet ◽  
Internet Commerce ◽  
New Business ◽  
Actual Volume ◽  
Tremendous Amount ◽  
On Line

The Internet network is rapidly becoming more and more popular among companies as an avenue to do business. It has made it easy for them to advertise, market their products and services, and communicate with their customers. Advertising and marketing on the Internet offers the promise of huge profits. Sellers, though, are not the only ones to reap benefits from the Internet. Purchasing products over the Net has also become extremely beneficial. It is faster than the traditional process of mail ordering, and various on-line support forums provide advice that is not found in manuals, catalogs, or brochures. Over the last few years, retail and computer experts have called the Internet the hottest marketing trend and the new consumer market. There are a number of benefits which Internet commerce could potentially deliver to consumers—convenience, wide choice of products, better product information, new types of products and services, and even lower prices. Nevertheless, the actual volume of consumer buying on the Internet is still small, a tiny fraction of worldwide consumer purchases. At the heart of this phenomenon of Internet commerce are the most essential concerns of the consumer—trust, confidence, and protection. Trust, itself, represents an evaluation of information, an analysis that requires decisions about the value of specific information in terms of several factors. Methodologies are being constructed to evaluate information more systematically, to generate decisions about increasingly complex and sophisticated relationships. In turn these methodologies about information and trust will strongly influence the growth of the Internet as a medium for commerce. In this new business environment, consumers find themselves increasingly in the driver’s seat, holding a tremendous amount of purchasing power over providers and sellers. They are empowered because they now have access to a worldwide assortment of suppliers—the Web gives them the power to buy from anyone, anywhere, anytime. The consumers, therefore, want to have control over the collection and use of their personal data and to have appropriate redress mechanisms available in the event of a problem.

A Model of Internet Commerce Adoption (Mica)

2011 ◽  
pp. 189-201 ◽  
Author(s):  
Joan Cooper ◽  
Lois Burgess
Keyword(s):  
Economies Of Scale ◽  
Customer Relationships ◽  
Medium Size ◽  
The Internet ◽  
Internet Commerce ◽  
Business Context ◽  
New Business ◽  
Commercial Medium ◽  
On Line ◽  
Business To Consumer

The commercialisation of the Internet has led to widespread usage of on-line services and being connected to the Internet has become a high priority for both large and small to medium size enterprises (SMEs) (Wai-Pun, Farhoomard and Tunnainen, 1997). Internet usage around the world is doubling every 10 days, with the number of people on the Internet expected to increase ten-fold from 100 million to 1 billion by 2005 (Network Wizards, 1995). The biggest transformation is in the area of e-commerce, which is expected to boom from (US) $6 billion in 1997 to more than $300 billion in 2002 (NOIE, 1998b). There is no doubt that it will be an imperative for any business to be part of the global Internet commerce community. Doing business online provides new opportunities for business, as well as presenting new business opportunities, facilitating new forms of e-commerce across industries in both the business to consumer and business to business context. It also provides new one-one as well as the more traditional one-many customer relationships and greater opportunities for customer-supplier interaction (Rayport and Savioka, 1995). The result will be more open economies and a levelling of opportunities for all businesses. This will enable small companies to overcome the main advantages (such as economies of scale and greater access to resources) of their larger counterparts. The proliferation of e-commerce and the exponential growth of the Internet as a commercial medium has resulted in the development of a number of frameworks that seek to enable a better understanding of what businesses are doing on the Web.

Internet Commerce and Exporting

2001 ◽  
pp. 24-42 ◽  
Author(s):  
Munib Karavdic ◽  
Gary D. Gregory
Keyword(s):  
New Technologies ◽  
Software Agents ◽  
Sales Promotion ◽  
Strategy Development ◽  
The Internet ◽  
Internet Commerce ◽  
Segmentation Strategy ◽  
Technological Advances ◽  
New Business ◽  
On Line

A host of new products and services are now available to more than a half-billion consumers. Firms now have greater opportunities to customize their product/service offerings as well as rely on standardized offerings as a preference. Global firms have the opportunity to customize their advertising and sales promotion messages to specific customer segments without the significant cost once involved in developing numerous messages for numerous markets. This communication segmentation strategy allows firms to achieve real dissemination strategies because of the elimination of wasted audience coverage and better-targeted messages aimed at the core benefits sought by various consumer segments. This is the new business world created by the Internet. As a result of recent technological advances in market entry, many firms are now beginning to increase their marketing and export functions. An emerging part of new technologies development involves electronic transactions over the open network, the Internet. An important Internet characteristic is its global coverage. Using the Internet as an access to the international market, firms generate significant revenues. For example, the music CD distributor CDNow, as a pure on-line company generated 21 percent of its total revenue from international markets in the first quarter of 1998; Dell, a computer manufacturer, generated 20 percent; and FastParts, an electronic components distributor, generated 30 percent. With other numerous examples of generating international revenue on-line, the Internet has already been proven a strategic tool in the exporting process. In this chapter we examine Internet marketing strategy for exporting and possible implications for firms using electronic technologies. The first part of this chapter presents Internet commerce as a specific entry mode to global markets using advanced technologies, represented by the Internet. Part Two introduces a model for Internet exporting strategies utilizing key components in the marketing mix (i.e., product, promotion, place, and price). The focus of this model is on the interaction between Internet commerce activities and software agents, and the potential impact on the exporting process. Applying the model of Internet-based exporting strategy to businesses, Part Three develops a strategic matrix that classifies firms based on the degree of product transferability and their capitalization on Internet technologies in exporting. Particular emphasis is given to the role of software agents in the electronic exporting process at different stages in strategy development. Finally, we summarize the impact of Internet commerce on exporting activities and highlight the benefits of incorporating new technologies into an exporting strategy.

scholarly journals Analyzing the Marketing Instruments in the Sphere of Innovative Entrepreneurship and Creative Industries in the City of Kharkiv

2020 ◽  
Vol 10 (513) ◽  
pp. 420-434
Author(s):  
M. S. Pasmor ◽  
◽  
S. V. Demchenko ◽  
D. V. Zaitseva ◽  
◽  
...  
Keyword(s):  
Rapid Development ◽  
Business Environment ◽  
Modern Human ◽  
Creative Industries ◽  
The Internet ◽  
Public Organization ◽  
The Public ◽  
Modern Business ◽  
On Line ◽  
The City

The topic of development and involvement of marketing instruments in business is relevant nowadays. In the era of the Internet, social networks and open information space, it is extremely important for companies and organizations to learn and implement new marketing instruments in order to utilize and fill the communication channels used by modern human in everyday life. Most marketing instruments, applied by the business environment before 2014–2016, are already becoming irrelevant due to the lack of feedback from the younger generation. From the off-line format, the interaction of business – buyer is increasingly moving to the on-line format. Thanks to the rapid development of digitalization in recent years, enterprises have received new channels of communication with their target audience, and, accordingly, new channels of communication and marketing instruments, which are covered in the publication. The article is aimed at theoretical studying the latest marketing instruments and analyzing their introduction into the creative industries of the city of Kharkiv. The latest marketing instruments are analyzed, examples of their use in the modern business environment of Ukraine are provided. Their adaptability is considered and recommendations for their use in commercial structures are made. Systematized and allocated are purely new marketing instruments used by business in the 21st century. The efficiency of their introduction into the activities of companies and organizations is substantiated and proved on specific examples. In addition, special attention is paid to the extended presentation of their use and disclosure of the essence on the example of the public organization «Kharkiv IT Cluster».

scholarly journals Cyberethics of Business Social Networking

2012 ◽  
pp. 314-338
Author(s):  
Dário Elias Félix Oliveira Rodrigues
Keyword(s):  
Social Networking ◽  
Information Flow ◽  
Ethical Issues ◽  
Personal Data ◽  
Initial Letter ◽  
The Internet ◽  
Ethical Challenges ◽  
Marketing Model ◽  
On Line ◽  
Problem Characteristic

The digital technologies open a virtual world where making successful business over the Internet and especially on social networks imply unusual ethical dilemmas. This chapter will seek to handle this problem, characteristic of the information age, highlighting ethical challenges surrounding the participation in a new electronic dimension which quickly became ubiquitous. In the same line of the marketing model entitled “Marketing-mix”1, a new mnemonical model is presented. This model will be designated as “Cyberethics2-mix”, and is composed by four elements, all of them having the initial letter “P”. These elements represent the following ethical issues that should be carefully taken into account when practicing business on the Internet: Property of intellectual rights over digitized contents; Precision of the content and data made available on the www 3; Possibility to access the on-line information flow; Privacy of personal data on Internet networking /

Business Transformations

2015 ◽  
pp. 61-86
Author(s):  
Mohsen Rajabi ◽  
Alireza Bolhari
Keyword(s):  
Supply Chain ◽  
Business Environment ◽  
The Internet ◽  
Organizational Process ◽  
Chain Management ◽  
Business Transformation ◽  
Management Processes ◽  
New Business ◽  
New Ideas ◽  
Major Alteration

Recent years have been observing the drastic changes in trends toward business environment. Novel parameters affecting businesses make them remain with two choices: adapt or perish. The fact that a once-thriving company like Nokia could not last in the market would provide a factual example of how the new business environment may be challenging. Business transformation is a term with ranges of definitions: an ultimate change in organizational process, which was caused by or resulted in a basic major alteration in structure, processes, and behaviors. It relates to new ideas, strategies, and management processes. Strategies not only affect the inner side of the company but also have peripheral consequences on the total supply chain. The chapter is an exertion to introduce some of the foremost factors on which businesses are being influenced, such as the Internet, e-business, globalization, etc. In addition, the relationships between supply chain management and business transformation and the reciprocal impacts are studied.

The Effectiveness of Privacy Policy Statements

2011 ◽  
pp. 84-111
Author(s):  
Roger Clarke
Keyword(s):  
Web Sites ◽  
Personal Data ◽  
Research Literature ◽  
Consumer Trust ◽  
Privacy Policy ◽  
Internet Commerce ◽  
Privacy And Security ◽  
Security Practices ◽  
Policy Statements ◽  
Business To Consumer

An expectation exists in the U.S.A. that operators of business-to-consumer (B2C) Web sites will provide public notice of their privacy and security practices in relation to the personal data that they hold. Such documents are referred to in this paper as Privacy Policy Statements (PPS). The use of PPS has become mainstream in many other countries as well. Privacy and security of personal data are important elements in consumer trust, and hence in a consumer‘s decision to make purchases using Internet commerce services. PPS could therefore be expected to play an important role in overcoming the impediments to consumer purchases online. This paper adds to the growing research literature on PPS by developing a research design involving comparison of an organisation’s PPS against a normative template developed on the basis of professional practice and laws, policies, practices, and public expectations around the world. A study of six B2C sites was undertaken, in order to assess the practicability of the design, and provide some initial substantive insight into the contributions that PPS currently make to consumer trust. It appears that many organisations’ PPS may be seriously inadequate, and hence may be more of an impediment to trust than an enabler of Web-commerce adoption.

scholarly journals Marketing relations in online advertising

2021 ◽  
Vol 36 (4) ◽  
pp. 33-41
Author(s):  
Evgeniya G. Radygina ◽  
Keyword(s):  
Relationship Marketing ◽  
Mass Communication ◽  
Online Advertising ◽  
Business Environment ◽  
Dominant Factor ◽  
The Internet ◽  
Economic Sectors ◽  
Goods And Services ◽  
New Business ◽  
Online Stores

Introduction. The relevance of the research is due to the fact that the model of communication between customers and suppliers within the online space has long influenced all marketing stages in the introduction of goods and services, starting with customer awareness, attitudes towards customers, soliciting potential customers to testing new products, sales, and customer retention. The purpose of the research is to identify features of the Internet as a space of marketing relationships and formulate the principles of interaction with users. Materials and methods. The reviewed sources included contemporary periodicals: Journal of Targeting Measurement and Analysis for Marketing, Electronic Markets, Marketing, etc. The study of Internet resources was based on the authors’ own data received by analysing the portals WebCanape, WebsiteSetup, Statista, etc. Results. There are nearly half a billion new users on social media; trillions of dollars have been spent in online stores, according to the annual Global Digital 2021 report. As of October 2021, the most popular social networks in the world by the number of active users (in millions) are Facebook (2,894), YouTube (2,291), WhatsApp (2,000), Instagram (1,393), Facebook Messenger (1,300), Weixin/WeChat (1,251), TikTok (1,000), etc. The Internet as a new business environment differs from traditional economic sectors by a higher level of heterogeneity. From the standpoint of marketing, the Internet makes it possible to simultaneously bring a message to a large number of users (mass communication is ensured), on the other hand, to customise the offer for specific consumers according to their needs. Conclusion. Contemporary marketing follows the consumer, i.e. uses the online environment as a point of contact with the consumer to promote and distribute products. Relationship marketing theories are based on the need for companies to invest in relationships between themselves and consumers. Relationship marketing focuses on taking relationships between the company and the consumer from a state of engagement to that of loyalty. Each customer has a personality and his/her relationship with a particular brand becomes the dominant factor influencing his/her decision regarding purchase or service.

scholarly journals CONCEPTUAL OUTLOOK TO SOCIAL INNOVATION IN EU

2015 ◽  
Author(s):  
Asta RAUPELIENĖ ◽  
Rasa RUKUIŽIENĖ ◽  
Olga V. TERESCHENKO ◽  
Nadezda V. EFIMOVA
Keyword(s):  
Social Networks ◽  
Content Analysis ◽  
Social Networking ◽  
High Speed ◽  
Social Innovation ◽  
Business Environment ◽  
New Business ◽  
Tremendous Amount ◽  
Generic Theory ◽  
Start Ups

The generic theory of social innovation appeared in early 2000. Therefore, the role of social innovation was been increased in last decades in the light of macroeconomic transformation of World economy and the great development of social networks. Under social networking new business activites appear in the globalized market, even known as social business. Most programmes of the European Commision have orientation on a high speed of knowledge transfering from scientific research system to business or public life. New organization models of business use a tremendous amount of social information and usually social networks serve for the greater impact on improving structure of business environment and implementation of digital managerial solutions. Social networking serves for production of new knowledge and creation of the new ecosystems for social innovation. The authors of this article are presenting the new aspects of social innovation performance by using the content analysis for identification the role and functions of social innovation under digitalization of business environment. The research is focused on the clarification of social networking effects and better understanding why social innovation is becoming so powerful tool for business start-ups and social communication. The content analysis is used in case to highlight the comparative aspects of social innovation in different economical activities.

Cyberethics of Business Social Networking

E-Marketing ◽  
2012 ◽  
pp. 756-780
Author(s):  
Dário Elias Félix Oliveira Rodrigues
Keyword(s):  
Social Networking ◽  
Information Flow ◽  
Ethical Issues ◽  
Personal Data ◽  
Initial Letter ◽  
The Internet ◽  
Ethical Challenges ◽  
Marketing Model ◽  
On Line ◽  
Problem Characteristic

The digital technologies open a virtual world where making successful business over the Internet and especially on social networks imply unusual ethical dilemmas. This chapter will seek to handle this problem, characteristic of the information age, highlighting ethical challenges surrounding the participation in a new electronic dimension which quickly became ubiquitous. In the same line of the marketing model entitled “Marketing-mix”1, a new mnemonical model is presented. This model will be designated as “Cyberethics2-mix”, and is composed by four elements, all of them having the initial letter “P”. These elements represent the following ethical issues that should be carefully taken into account when practicing business on the Internet: Property of intellectual rights over digitized contents; Precision of the content and data made available on the www 3; Possibility to access the on-line information flow; Privacy of personal data on Internet networking /

E-Retailing

2011 ◽  
pp. 202-217 ◽  
Author(s):  
Ly Fie Sugianto ◽  
Sen Sendjaya
Keyword(s):  
Transaction Costs ◽  
Business Environment ◽  
Business Practice ◽  
Target Market ◽  
Geographical Distance ◽  
Virtual Model ◽  
Internet Commerce ◽  
Critical Question ◽  
On Line ◽  
The Impact

Internet commerce has brought forward a new spectrum of business practice. It radically changes the way we do business. These changes have been fairly impulsive and inevitable. Limitations caused by traditional commercial practices, such as barriers to reach the whole target market due to geographical distance,and high transaction costs due to engagement costs for attorney, agent and broker involvement, are no longer major issues as businesses become adept at identifying mechanisms to create and deliver value. In view of this new trend, a critical question to be answered is, what is the implication of Internet commerce on the conventional way of conducting business? Has Internet commerce changed the retailing market by eliminating the intermediaries out of the transaction chain? Or, has it defined new roles for the retail industries and intermediaries? This chapter attempts to reveal the impact of Internet commerce to discover new opportunities and identify challenges, in particular, for the intermediaries. It presents a physical and virtual model of business environment and highlights the business areas which would have been affected the most by the introduction of on-line services. The discussion in this chapter is aimed to enable the reader to evaluate the trends, the gains and the losses resulting from Internet commerce in today’s competitive business environment.

Sign in / Sign up

Export Citation Format

Share Document