TRUST FACTORS AFFECTING B2C E-COMMERCE SalahEddin Alswiay Nergiz Ercil Cagiltay Atilim University Atilim University Department of Information Systems Department of Software Engineering slhl070@gmail.com necagiltay@gmail.com‫‏‬ ÖZET of the results of earlier studies, a conceptual model is E-hizmetler günümüzde ticari işlemlerin süresini developed showing the factors affecting trust in B2C e- kısaltmakta ve maliyetlerini azaltmaktadır. Dolayısıyla commerce and the relationships among these factors. gerçek bir devrim olarak nitelendirilebilirler. Genellikle e-hizmetler, yalnızca bir bilgisayara ve işi Keywords gerçekleştirmek için modern bir iletişim aracına ihtiyaç Trust, B2C E-commerce, Risk, web design, marketing duyar. Ancak bu hizmetlerin yerine getirilmesi konusunda güven son derece önemli bir unsur olarak INTRODUCTION karşımıza çıkmaktadır. Dolayısıyla bu işlerin güvenli bir Digital markets have emerged as convergent centers for şekilde gerçekleştirilebilmesi için, ticari ve yasal various companies and have linked an extension of düzenlemelerin yapılması, tüketicilere ilişkin manufacturers, distributors, retailers, and production taahhütlerin belirlenmesi ve tüketicilerin geleneksel components on a single data network. The increase in ticari ortamlarda olduğu gibi korunmasının sağlanması the B2C e-commerce has made several companies looks gereklidir. Dolayısıyla, e-ticarette güven son derece for new ways to understand online shopping behavior önemlidir. Alanyazındaki çalışmalarda B2C e-ticaret and to attract and retain consumers [1]. The appearance ortamlarında güveni etkileyen faktörler çeşitli şekillerde of many studies tries to contribute building confidence incelenmiştir. Ancak bu faktörlerin ve birbirleri ile in the e-commerce environment. Several studies have ilişkilerinin genel olarak incelendiği kavramsal modeller focused on developing the contents and interfaces of e- son derece sınırlıdır. Bu çalışmada, önceki çalışmalardaki commerce sites [2], [3]. Research has conducted on sonuçların analizine dayalı olarak, B2C e-ticarette etken trust in e-commerce are mainly aimed either to olan güven faktörleri ve bu faktörler arasındaki ilişkileri understand the composition of confidence better or to gösteren bir kavramsal model geliştirilmiştir. understand better how various factors affect confidence in the Internet environment. The factors influencing Anahtar Kelimeler confidence differed regarding identify the trust [4], [5]. Güven; B2C e-ticaret; risk; web Tasarımı; pazar Some studies have overlapping or duplicating elements with those mentioned in other reviews [6], [7]. Some ABSTRACT studies have a comparative dimension in aggregation Today e-services are shortening the duration of business factors across different countries and cultures and have transactions and reducing their costs. They can, shown how they differ in various contexts [8], [9]. therefore, be described as a real revolution. E-Services Companies today succeeded in performing business to need a single computer and a modern communication raise confidence through an internal corporate network tool to do the job. In e-commerce, business-to-customer to distribute information everywhere. Experts stressed (B2C) defined as achieving attention, market that financial movements on the internet have become orientation, perceived security, technological trust and as secure as traditional face-to-face economic changes. excellence in relationships between vendor and clients. However, no entity or institution yet has been created However, trust in the fulfilment of these services is to demand an entirely safe system. On the other hand, highly significant. Therefore, to ensure the safety of mistrust reiterated as one of the most significant these companies, fulfilment of commercial and legal barriers to people's participation in e-services. regulations and the determination of consumer Researchers report that one of the main reasons for commitments are critical. In earlier studies, some these disappointing results is the lack of trust between factors affecting trust in B2C e-commerce environments consumers and service providers [10]. For this reason, have proposed. However, insufficient studies are consumer confidence in e-commerce has become an showing a conceptual model and the relationships urgent and critical issue for governments and among those factors. In this study, based on the analysis companies, as well as for researchers interested in this area. Studies have been conducted to identify the Pakistan and Australia. The results show that B2C sites factors that affect consumer confidence in electronic reflect in one way or another cultural environment that commerce, whether negative or positive. surrounds online buyers. It seems that the impact of online buyers to buy, companies need to develop sites METHODOLOGY culturally adapted to their marketing strategies to improve online sales by targeting different cultures. A This study aims to focus on the critical issues comparative study between US and Korean surrounding confidence in e-commerce by identifying communities suggests that the perceived effectiveness the concept of trust in electronic transactions. The study of US buyers has a significant positive impact on their based on previous studies on trust in e-commerce, business intentions, which has a significant negative which were reviewed and exceeded 100 research impact on their fears of e-commerce. In contrast, the papers. Consequently, factors affecting confidence were perceived effectiveness of Korean consumers does not determined directly or indirectly. significantly affect the purchasing plan and their ANALYSIS OF PREVIOUS LITERATURE concerns for e-commerce. The results of the group's identity analysis confirm that the perceived The rapid growth of online virtual communities effectiveness of US clients is much stronger than Korean increases interaction and makes virtual communities consumers [18]. more dynamic [11]. Trust management has one of the B. Logistics most critical components in this environment [12], [13]. Several studies have been conducted to determine the Logistics for delivery and shipping can be another online confidence-building model in e-commerce. challenge because of the digital divide between According to [14], they developed a model consists of countries that can be more challenging for sellers and four sections: Professionalism includes the following customers, as well as the national and international elements: Web design, Usability, Proper branding. organization aimed at improving the level of trust in e- Consideration consists of the following elements: user commerce [19]. The results indicate that rapid delivery interface, self-reputation, risk, and other reputation. has a positive impact on financial performance, as it Technological incentives include the following leads to higher demand rates, increased demand, and elements: security, user privacy, and payment systems. higher repurchase rates in cross-border transactions. Reliability includes the following elements: real-world According to the study where they used of forty presence, size, costumer-oriented. This model is the thousand data from online store sales of consumer most widespread widely according to many studies, but electronics [20]. The study pointed out that B2C there have been many attempts to develop this model. company should focus on the time, cost and reverse Such as [15] model update consists of six dimensions, logistics aspects, especially product return, product consumer and institutional behavior, information, quality and information exchange for the design and products, transactions, technology, a challenge the trust management of distribution logistics. Electronic change is not dynamic according to technological technology is updated very rapidly and the e-commerce development, as well as conditions associated with the market changes every time. development of Internet use. C. Feedback Feedback is another issue to show customers' judgment Proposed factors for the trust model of buying online. In B2C, integrity is the concept that companies operate in a consistent, reliable, and honest The study attempted to update the confidence model manner while keeping their promises. Ability refers to by adding some dimensions that would increase the belief that companies can fulfill their commitments. consumer confidence. That arranged as below: Good faith is in the ability of companies to pay attention to the interests of consumers and be concerned for the A. Culture welfare of their customers. In the B2C e-commerce The belief that culture is another critical factor to be environment, three key players interact to determine considered, according to many studies that have made consumer confidence levels. These trust parties are comparisons with the impact of national culture on trust consumers, sellers, rulers. Based on the results of in e-commerce. For example, [16] conducted research previous studies indicated, the e-commerce sites need indicating that confidence and beliefs may be a constant feedback from customers, after-sales service, relatively different aspect of e-commerce. Therefore, and any sales problems with an urgent need to respond the ability to predict and know national cultures to customers [5], [6]. Also it is believed that trust contributes to increased confidence. According to [17], models based solely on reactions from other peers in the cultural factors in B2C e-commerce has examined in society are inaccurate and ineffective. The counterpart receives through his interactions with other peers; information, noting that websites need mechanisms to integrate the total number of peer transactions, and the communicate privacy protection information. Concern credibility of feedback sources in a model to assess the for information privacy has also echoed by researchers reliability of their peers. Common problems like [29], [30] where they stated websites need to have encountered in a variety of online communities. mechanisms to communicate the information about Therefore, the study supported the addition of these privacy protection in the form of privacy seals and dimensions to the confidence model in this study an policies. This finding supported by other of researchers attempt to highlight these aspects and their like [31], [32] stated that privacy issue of customers has importance. a strong influence on trust. Contradicting the D.Customer Privacy & International Legislation relationship between confidence and concern for the and Internet Gaps Internet information privacy, [33], [34] indicate that It is worth mentioning that the market orientation is the increasing perceptions of trust will influence the privacy perspective of e-commerce. In a study conducted in parameter to permit the customer to determine that [21], it is found that perceived security and privacy were the benefits of disclosure of personal information the main factors affecting brand trust in online libraries. outweigh the risks. Brand confidence refers to the desire of customers to Within the study, believe that international legislation rely on the brand to perform its stated function [22]. and internet gaps it is essential to support confidence. The study concluded that e-commerce sites should have Previous studies and recommendations on Internet sufficient privacy policies that need to be highlighted on gaps, international legislation [35], have pointed to the their websites, and mechanisms should be developed to need to develop the necessary infrastructure for the enhance security perceived by customers. Here, privacy Internet and to expand the relationship between local policies referred to how online businesses use customer and international telecommunications networks. information [23], [24]. In an attempt to develop the Implement appropriate economic measures that start-up model of B2C e-commerce [6], combine these increase competition in the Internet services market and allow Internet companies to provide their global two factors: security, privacy and terms thereof as portals. As well as develop a legal environment for perceived safety and technological merit. In another dealing with the Internet, including the issuance of study to develop the electronic retail trust model using appropriate electronic commerce laws such as digital a national sample of 908 respondents from the United signature, digital identity, tax treatment and consumer States [4], revealed that after-sales service customer protection to reduce the digital divide between satisfaction, security, and privacy are the three critical countries. According to [36], the fulfillment of the factors affecting online trust. The safety issue also system, government actions, and the reputation of echoed in a study by [25], where they suggested that electronic retailers, the quality of information, the bearing competitive pressures and the desire to security of e-commerce platform and the status of e- maintain relationships with clients, institutions have commerce platform has a significant impact on equally developed the technology needed for online customer confidence. companies to ensure security and trust. Other RESULTS researchers expanded the model development model [26] the theory of social psychology to link faith and The B2C e-commerce topic can understand by showing willingness to deal. Also based on the literature of the significant relationships of the trust construct with confidence, [8], [27] suggested a model for presenting market orientation, risk, security trustworthiness, user communication between familiarity and willingness to interface quality, perceived product and service sell. The study indicated that trust reduces the concern information quality. Thus, this study contributed to this about the privacy of the information and leads to growing area of research by fulfillment the process of customer readiness to deal. They also suggested that designing E-commerce websites required from shopping knowledge of Web sites would increase confidence in firms, web-designers to understand firstly, plus improve the website and this risk would play a moderating role the features of E-commerce websites by acquiring in influencing trust, which would affect the desire to knowledge about the market orientation, security trustworthiness, user interface quality, perceived deal with the privacy of the information and the product, and service information quality. Furthermore, customer's interest. Thus, belief is the critical people with a higher level of trust in e-commerce are determinant of the buyer-seller relationship; if insured, more likely to participate in e-commerce [6], [37]. the customers will be willing to offer and share personal Overall, the current findings confirm the results [38] information with electronic vendors [28], [15]. that emphasize the importance of trust in the e- Researchers echoed concerns about the privacy of commerce websites, which has an impact on both conference on Human Factors in Computing consumer satisfaction and e-loyalty. It is believed that Systems (pp. 80-87). ACM. the proposed model [14] can be updated as in Fig.1 by [3] Fogg, B. J., Marshall, J., Kameda, T., Solomon, J., considering these dimensions. However, more research Rangnekar, A., Boyd, J., & Brown, B. (2001). Web needs to be performed to validate these factors. credibility research: a method for online experiments and early study results. 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Salaheddin Alswiay In November 2001, he obtained a Higher Diploma in programming and analysis of information systems, Al Mustakbel Higher Institute Computer technology. In 2004 Specialized Diploma In Computer and Operating System From Faculty of computer technology Tripoli. After graduate was working in the "General Information and Documentation Authority." worked in several sections of positions within the institution. The latest of which was the national information system. have got the support of the government to complete the study in Turkey in February 2016 for a master's degree and enrolled at the University of Atilim. Doç. Dr. Nergiz Ercil Çağıltay ODTÜ Matematik Bölümü’nden 1988 yılında mezun olduktan sonra aynı üniversitenin Bilgisayar Mühendisliği Bölümü’nden Yüksek Lisans çalışmasını tamamlayarak, Yüksek Bilgisayar Mühendisi derecesini aldı. Daha sonra, ODTÜ Bilgisayar ve Öğretim Teknolojileri Eğitimi Bölümü’nde doktora çalışmasını tamamladı. Türkiye'de çeşitli özel sektör ve devlet kurumlarında yazılım mühendisi ve grup yöneticisi olarak çalıştıktan sonra, 1998-2002 yılları arasında A.B.D. Indiana Üniversitesi Digital Library Program biriminde çalıştı. Kendisi halen Atılım Üniversitesi Yazılım Mühendisliği Bölümü’nde öğretim üyesi olarak çalışmalarına devam etmektedir. İş Zekâsı ve Veri Ambarı Sistemleri, Veritabanı Sistemleri, Scratch ile Programlamayı Öğreniyorum, C Dersi: Programlamaya Giriş gibi birçok Türkçe ders kitabı hazırlamış olan Çağıltay, öğretim teknolojileri ve tıp bilişimi alanlarında araştırmalar yapmakta ve projeler yürütmektedir. Çağıltay ayrıca 1971 yılından beri faaliyet göstermekte olan Türkiye Bilişim Derneği (TBD) Ankara Şubesi Yönetim Kurulu üyeliği görevini sürdürmektedir. Nergiz Ercil Çağıltay ile ilgili detaylı bilgiye www.atilim.edu.tr/~nergiz.cagiltay adresinden ulaşılabilir.