CONSUMER TRUST IN E-COMMERCE: FACTORS AFFECTING TRUSTWORTHINESS

Abstract

The objective of this study is to investigate the impact of various factors, namely Website Design and Usability (WDU), Information Security (IS), Perceived Vulnerability Consumer Rating (PVCR), Perceived Product Transparency (PPT), Customer Reliability (CR), and Social Risk (SR), on the level of Consumer Trust in E-Commerce (CTE). This research examines the correlation between these variables and their impact on consumer trust within the realm of online commerce. A reliable and valid structured instrument was used for data collection. A total of 259 individuals with previous experience in E-Commerce participated in the study, using a five-point Likert scale. The participants' involvement in online shopping and E-Commerce transactions made them relevant to the study. The primary analysis technique chosen was structural equation modelling (SEM) in AMOS, due to the utilisation of survey-based instruments with latent variables. The results shed light on the intricate interplay among different variables within the realm of electronic commerce and their impact on consumer trust. The influence of website design and usability on consumer trust in-commerce via social risk is apparent. Furthermore, the influence of Social Risk on Consumer Trust in the realm of E-Commerce is of utmost importance, underscoring the need to effectively address and handle social risk factors in order to foster and sustain Consumer Trust in E-Commerce platforms. Similarly, the study found that social risk plays a mediating role in the relationship between Information Security, Perceived Vulnerability Consumer Rating, Perceived Product Transparency, Customer Reliability, and Consumer Trust in E-Commerce. This study investigates the factors that influence Consumer Trust in E-Commerce, contributing to the overall understanding of trust formation in online purchasing. It offers guidance for E-Commerce businesses aiming to enhance consumer trust and trustworthiness in online environments.