A Study on the Factors That Influence the Consumers’ Trust on E-commerce Adoption

Abstract—The development of electronic commerce is characterized with anonymity, uncertainty, lack of control and potential opportunism. Therefore, the success of electronic commerce significantly depends on providing security and privacy for its consumers’ sensitive personal data. Consumers’ lack of acceptance in electronic commerce adoption today is not merely due to the concern on security and privacy of their personal data, but also lack of trust and reliability of Web vendors. Consumers’ trust in online transactions is crucial for the continuous growth and development of electronic commerce. Since Business to Consumer (B2C) e-commerce requires the consumers to engage the technologies, the consumers face a variety of security risks. This study addressed the role of security, privacy and risk perceptions of consumers to shop online in order to establish a consensus among them. The analyses provided descriptive frequencies for the research variables and for each of the study’s research constructs. In addition, the analyses were completed with factor analysis and Pearson correlation coefficients. The findings suggested that perceived privacy of online transaction on trust is mediated by perceived security, and consumers’ trust in online transaction is significantly related with the trustworthiness of Web vendors. Also, consumers’ trust is negatively associated with perceived risks in online transactions. However, there is no significant impact from perceived security and perceived privacy to trust in online transactions.