Academic journal article Journal of Business and Behavior Sciences

An Analysis of Online Shopping in Thailand

Academic journal article Journal of Business and Behavior Sciences

An Analysis of Online Shopping in Thailand

Article excerpt

ABSTRACT:

Trust is the most crucial factor for online shopping. Those organizations interested in enhancing their business channel with internet shopping need to understand the influence of consumers' trust, and how it depends on other independent variables. Additionally, they need to understand the cause of unreliability, how to eliminate it, and what functions have to be improved and maintained in order to attract consumers. This will allow organizations to understand the existing internet shopping environment and the consumers' decision to repurchase. This study investigates the factors influencing consumer trust in internet shopping in Thailand. Based on various previous empirical studies, a conceptual framework was developed to examine the relationship between six factors which influence trust in Internet shopping. The data was analyzed by using structural equation modeling (SEM) to test all hypotheses. The results of this study show that perceived integrity and perceived ease of use have a positive relationship with trust toward Internet shopping in Thailand. Recommendations are provided for Internet sellers to enable them to increase consumer trust.

Chanidapa Prompongsatom

Nattapong Sakthong

Sinon Chaipoopimtana

Howard Combs

INTRODUCTION

Since the mid 1990s the Internet has grown tremendously and created countless applications in virtually every aspect of modem human life. The Internet continues to make the world smaller. It benefits the people around the world by enabling communication and transactions. Moreover, consumers are able to quickly search for the information they need. There are now over 1.7 billion Internet users in the world with the largest number being in Asia. In 2012, 28 percent of the world's population is online with the percentage online in Asia now 22 percent. According to a global survey conducted by the Nielsen Company, 85% of the world's online population has used the Internet to make a purchase, a 40% increase over the last two years. Online shoppers tend to exhibit repeat visits to the same online site based on the level tmst (Global online shopping report by Nielsen, 2008).

Online tmst plays a major role in determining the success of ecommerce web sites (Koufaris and Hamptopn-Sosa, 2004). A high degree of tmst will create high expectations of satisfaction and increase the degree of purchase intention but reduce uncertainty in most online transactions (McKnight and Chervany, 2002; Pavlou, 2003; Gefen and Straub, 2003; Jarvenpaa et al, 2000). Also, tmst is a psychological state comprising the intention to accept vulnerability based on positive expectations of the intentions or behaviors of another. Intrinsically, trust implies a willingness to accept vulnerability, but with an expectation or confidence that one can rely on the other party. In the marketing literature, trust has been studied primarily in the context of relationship marketing (Doney and Cannon 1997). In studies of buyer-seller relationships, trust in a sales agent evolves over time and is based on a buyer's observation of a sales representative's honesty, reliability, consistency, and trustworthiness.

To the extent that a consumer has positive impressions about a site and accepts vulnerability, she/he develops trust with that site. A consumer's perception of a site's competence to perform the required functions, and perception of the good intention of the firm behind the online storefront, contributes to his/her perception of trust in that site. Online trust thus includes consumer perceptions of how the site would deliver on customers' expectations, how believable the site's information is, and the level of confidence in the site. Therefore, trust is an important factor to facilitate online transactions.

Acquiring customer trust depends on various factors. Many researchers have investigated how consumers develop trust. Based on many empirical previous studies, Tang (2005) found that perceived ease of use and usefulness are major significant affect on trust in online shopping. …

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