Final Edited Project
Final Edited Project
1 INTRODUCTION:
Although electronic commerce (EC) has created new opportunities for business as
well as consumers, questions about consumer attitudes towards Business-to-
Consumer (B2C) e-commerce vis-à-vis the conventional shopping channels to persist.
This paper report results of a study that measured consumer satisfaction with the EC
channel through constructs prescribed by three established frameworks, namely the
Technology Acceptance Model (TAM), Transaction Cost Analysis (TCA), Service
Quality (SERVQUAL). Using constructs from the three frameworks, a model was
constructed and tested to examine the determinants of the EC channel satisfaction and
preference using the survey data.
Trust has been empirically established as one of the key attributes in B2C e-commerce.
The effect of measures to build and maintain trust in B2C online shopping is subject to
customer-centric behaviour factors, which cannot be controlled by the business firm.
The present study conducted in the Indian context explores the role of consumer self-
efficiency website social presence in customer’s adoption B2C online shopping
mediated by trust, perceived usefulness, and perceived risk. The most significant
outcome of the study is that the consumer self-efficacy and website social presence
affect trust, perceived usefulness and perceived risk in the online customers, and in
turn positively influences the customer’s intension to purchase products online.
1
INTRODUCTION TO THE STUDY
2
1.2 OBJECTIVES:
To study and maintain trust of the consumer in B2C online
shopping. To study intention in online shopping.
To study impact of perceived security on
trust.
To study impact perceived privacy on trust
To study impact vendor reputation on
trust
To study impact of trust on intention
3
1.5 DATA COLLECTION METHODOLOGY:
The methodology that is adopted for the study is such that it facilitates the data
accumulation. The information is gathered through survey method. The survey method
is adopted for collecting the data from people who are purchasing through Amazon
also.
4
REVIEW OF LITERATURE
5
ARTICLES
The Role of Consumer Self-Efficacy and Website Social-Presence in
Customers' Adoption of B2C Online Shopping
Satyabhusan Dash &K. B. Saji
Trust has been empirically established as one of the key attributes in business to
customer (B2C) e-commerce. The effect of measures to build and maintain trust in
B2C Online Shopping is subject to customer-centric behaviour factors, which cannot
be controlled by the business firm. The present study conducted in the Indian context
explores the role of consumer self-efficacy and website social presence in customer's
adoption of B2C online shopping mediated by trust, perceived usefulness, and
perceived risk. The most significant outcome of the study is that the consumer self-
efficacy and website social-presence affect trust, perceived usefulness and perceived
risk in the online customers, and in turn positively influences the customer's intention
to purchase products online.
Lack of trust in online transactions has been cited as the main reason for the
abhorrence of online shopping. We have tested the mediating role of trust in online
transactions to provide empirical evidence that trust in the online store represents the
generic mechanism through which the focal independent variables of website design
are able to positively influence purchase intention and reduce the perceived risk. We
have further demonstrated the moderating effect of the individual's culture in e-
commerce and thereby offered insights into the relative importance of website design
factors contributing to trust for customers of different cultural values.
6
Seeing is believing: using Data Visualization for formative feedback
in computer supported online learning collaboration
With many businesses seeking to seize the momentum of the online social networking
phenomenon, social shopping sites have emerged among the latest developments to
leverage the power of social networking with online shopping. While the adoption of
information technology in general is well studied, new theoretical development can
provide a better understanding of the specific characteristics associated with online
social shopping applications. This paper extends the Technology Acceptance Model
(TAM) with two additional constructs: an online shopper's tendency to social
comparison, and trust in information privacy and data security. Results support the
proposed model. Directions for future research are discussed.
7
Web site design, trust, satisfaction and e‐loyalty: the Indian experience
With the rapid expansion of global online markets including India, researchers and
practitioners are challenged to understand drivers of customer satisfaction, trust and
loyalty towards web sites. The paper aims to focus on web site design, which is
expected to influence whether customers revisit an online vendor. The results indicate
significant preference for the local web site in almost all design categories. Further, the
local site instilled greater trust, satisfaction and loyalty. Data collected for this study are
compared with parallel work conducted using the same procedures in four other
countries.
The purpose of this paper is to highlight the significance of relationship quality factors
(customer satisfaction, e‐trust, and e‐commitment) on positive word of mouth (WOM)
in online retailing. All of site characteristics in online retailing have a positive
influence on customer satisfaction. Communication of site characteristics has a positive
effect on customer satisfaction more than the other factors (shopping convenience, site
design, in formativeness, and security). Customer satisfaction affects positively e‐
commitment more than it does e‐trust. E‐commitment affects positively WOM more
than it does e‐trust. This paper identifies the causal relationship among site
characteristics, relationship quality, and WOM. Further, the relative importance of
customer satisfaction in relationship quality of online retailing is examined.
8
Conceptualizing consumer “trust” in online buying behaviour: an
India has a large internet savvy population that is not only accessing the internet but
also buying online. With a revolution in the very basics of transaction from a physical
store format to a non‐store one, the retail industry has begun to understand the
indispensability of the internet as a medium of transaction. However, the rate of
diffusion and adoption of the new phenomenon amongst consumers is still relatively
low. Trust on online transactions is one of the key barriers to vendors succeeding in
online transactions. A lack of trust discourages consumers from participating in online
buying. With the internet advancing new opportunities, it is important to understand the
factors that generate trust of Indian consumers in the online buying system. The purpose
of this paper is to explore the determinants of trust in online buying behaviour of
consumers. This paper is a theoretical attempt at conceptualizing “trust” as a construct,
in the context of online buying and testing it empirically. The objective of the study is
to explore the critical online trust‐creating factors that influence the online buying
decision of people, and to establish their causal impact, if any, through developing an
integrated model.
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Understanding the Effect of Customer Relationship Management
Efforts on Customer Retention and Customer Share Development
Peter C. Verhoef
As with any other information system (IS), the success of online shopping depends
largely on customer satisfaction and other factors that will eventually increase
customers' loyalty intentions. This article integrates two major variables of technology
acceptance model (TAM), trust, and fairness to construct a model for investigating the
motivations behind customers' loyalty intentions towards online shopping. The
hypothesised model is validated empirically using data collected from 311 customers of
an online shopping store. The results indicated that distributive, procedural and
interactional fairness were strong predictors of trust, which in turn influenced
satisfaction. Distributive fairness and interactional fairness exhibited significant
positive effects on satisfaction. Perceived usefulness and satisfaction influenced loyalty
intention towards online shopping. Perceived ease of use acts indirectly on loyalty
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intention through the mediating effect of perceived usefulness. Implications for theory
and practice and future research directions are discussed.
11
making is affected by different purchasing contexts. This research also has implications
on the design and use of trust-building technologies.
12
Antecedents and consequences of e-shopping: an integrated model
13
Online trust antecedents and their consequences on purchase intention:
An integrative approach
The objective here is to look into the various aspects of online shopping in modern
day environment and to identify those factors that affect the development of attitudes
towards online shopping. The study also aims at identifying customer requirements
with respect to online shopping, giving certain conclusions to ensure the success of an
online shopping site. This study is descriptive, diagnostic and exploratory in nature,
and is aimed at identifying critical parameters in online retail shopping, tapping
consumers' feelings and attitudes towards online shopping, and establishing attitudinal
differences across demographics. It reaches a logical conclusion through the
identification of key design areas. It helps one to understand what consumers expect
from an online retailing store for their satisfaction and delight. By examining the
various dimensions uncovered in this study, online retailers can develop a better
understanding of consumer needs. Marketing academicians may use this study for
14
assessing consumer attitudes towards online retail shopping in the Indian context,
thereby, identifying such attributes that would lead to positive attitudes towards online
retail shopping. Online retailers may also use the findings of this study as a resource,
while constructing, managing, and evaluating their marketing strategies in the Indian
context.
15
COMPANY PROFILE
16
3.1 INTRODUCTION:
Flipkart is one of India’s leading e-commerce marketplaces. It was founded in October 2007
and its headquarters are in Bengaluru. It was founded Sachin Bansal and Binny Bansal. This
online venture was initially started as an online bookstore and as the popularity of the
company grew, it expanded and diversified its operations.
It started selling other items such as music, movies, and mobile phones. As the revolution of
e-commerce gained momentum in India, Flipkart grew at an accelerated pace and added
several new product lines in its portfolio.
As of now, the company offers 80 million+ products spread across more than 80 categories
such as mobile phones & accessories, computers and accessories, laptops, books and e-
books, home appliances, electronic goods, clothes and accessories, sports and fitness, baby
care, games and toys, jewellery, footwear, and the list goes on.
Flipkart has 100 million registered users and more than a million sellers on its electronic
commerce platform. To ensure prompt delivery to its customers, the company has invested
in setting up warehouses in 21 states.
This online platform attracts ten million page hits every day and around eight million
shipments are processed every month. Flipkart has also introduced its mobile application,
which has become quite popular, with 50 million+ app users. Flipkart is a billion dollar
company and its valuation in 2016 was INR 15,129 crore (US$2.3 billion). It is also
fulfilling its social responsibility by providing huge scale employments (employs more than
33,000 people).
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HISTORY:
Flipkart was originally started as an online book store in October 2007. To start Flipkart, the
founders Sachin Bansal and Binny Bansal left their jobs at Amazon and took a huge risk to
start a venture of their own. When the founders thought of starting Flipkart as a company the
market at that time was not so much vibrant and was not adapted to the e-Commerce sector
that much.
This means e-commerce in India was mostly non-existent at that time and there was no
certainty about its future. Still, the Bansal’s decided to take this risk and now it has turned
out to be a huge success.
One of the major problems that Flipkart tackled during its initial years was online payments
because at that time, people in India were averse to make online payments to a virtual store,
due to fear of frauds and loss of money.
To deal with this issue, Flipkart launched its ‘Cash on Delivery’ service, which helped to
build confidence among online buyers. It also made significant efforts to improve the supply
chain system, which helped the company to ensure timely delivery to its customers.
ACHEIVEMENTS:
The company created a record by selling 1 lakh books in a single day in 2013. Flipkart
crossed the 100 million mark in registered customers in 2016.
Flipkart achieved the Young Turk of the Year Award at CNBC TV 18’s “India Business
Leader Awards 2012”.
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FUNDING:
Flipkart has received funds worth more than $ 4.5 billion, with the biggest funding in July
2014 worth $ 1 billion and in April 2017 worth $ 1.4 billion.
List of top investors in Flipkart includes Naspers, Stead view Capital, Tiger Global
Management, DST Global, Accel Partners, Dragononeer Investment Group, Baillie Gifford,
GIC, Green oaks Capital, ICONIQ Capital, Microsoft, Morgan Stanley, Qatar Investment
Authority, and Safina.
ACQUISITIONS:
There is cut-throat competition in the e-commerce market and the biggest Rival of Flipkart
is Amazon. In the recent years, many mergers and acquisitions have been witnessed in the e-
commerce market and Flipkart has also made many acquisitions to expand its business and
boost its sales and earnings.
The major acquisitions made by Flipkart include Myntra, eBay India, PhonePe, Jabong,
Letsbuy(dot)com, WeRead, Mime360, chakpak (dot) com, Appiterate, FX Mart, and ngpay.
It has recently acquired its former competitor Snapdeal. It has acquired Snapdeal at a cost of
$ 950 million.
COMPETITION:
After acquiring Snapdeal the major competitive left against Flipkart is Amazon India. Still,
it is facing stiff competition from Amazon India because Amazon has really captured a
larger share of the market.
Amazon company profile is betting big on India’s e-commerce revolution and has recently
captured an investment of $5 billion in Amazon India. The company has already received
funds of $2 billion and $3 billion more are planned. Amazon India has been consistently
expanding its customer base, which has resulted in cut-throat competition for Flipkart’
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ABOUT THE FOUNDER:
Sachin Bansal and Binny Bansal are the founders of Flipkart. Both of them are IIT (Indian
Institute of Technology, Delhi) graduates. Both of them are from Chandigarh. Though they
share the same last name, they are not relatives.
First, Sachin Bansal joined Amazon(dot)com and worked as a software engineer and later he
got Binny Bansal to join it. But eventually, they both quit Amazon and decided to start a
venture of their own. They decided to launch Flipkart.
Sachin Bansal is the Executive Chairman of Flipkart and Binny Bansal is at the post of
Chief Executive Officer (CEO) of Flipkart.
Forbes India Rich List 2015 named Binny Bansal along with Sachin Bansal, the 86th richest
person in India with a net worth of $1.3 billion.
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DATA ANALYSIS & INTERPRETATION
21
4.1. Gender of respondents those who use Flipkart.
TABLE 4.1
2 Female 37 44
TOTAL 84 100
Fig 4.1
Chart Title
44%
56%
male female
INTERPRETATION:
The above table and graph show that the percentage of male respondents is 56%
and female respondents are 44%. So, male use more online portals for their purchases.
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4.2. Qualification of respondents those who use the Flipkart.
TABLE 4.2
1 SSC 0 0
2 INTERMEDIATE 5 6
3 UNDER 24 28
GRADUATE
4 POST GRADUATE 55 66
TOTAL 84 100
Fig 4.2
percentage of respondents
70
60
50
40
30
20
10
0
SSC INTERMEDIATE UNDER GRADUATE POST GRADUATE
INTERPRETATION:
The above table and graph show that the undergraduate and post graduate
are28% and 66% and the percentage who only educated intermediate are 6% so the
least educated among the respondents are SSC and none of them are using Flipkart.
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4.3. Age of respondents those who use Flipkart.
TABLE 4.3
1 0-20 11 13.1
2 21-30 69 82.1
3 31-40 3 3.6
4 41-50 1 1.2
5 Above 50 0 0
TOTAL 84 100
Fig 4.3
90
80
70
60
50
40
30
20
10
0
0-20 21-30 31-40 41-50 above 50
Interpretation:
The above table and graph show that 85.7% of the respondents use more of
Flipkart portals as they are employed, 1.2% who are above 41 years use less of online
marketing and the teenagers and below are also less in number.
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4.4. The Number of users using Flipkart for purchasing a product or services.
TABLE 4.4
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 24 28.6
4 Agree 35 41.7
TOTAL 84 100
Fig 4.4
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly Disagree Neutral Agree Strongly agree
disagree
Interpretation:
The above table and graph show that the percentage of those who are
extensive satisfied is 29.7 and those who are satisfied is 41.7 and percentage of
those who have divide opinion is 28.6. So, majority of the users are satisfied.
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4.5. interested people to use Flipkart in the near future.
TABLE 4.5
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 31 37
4 Agree 33 39.3
TOTAL 84 100
Fig 4.5
45
40
35
30
25
20
15
10
0
strongly disagree disagree neutral agree strongly agree
Interpretation:
The above table and graph show that the percentage of extensive satisfied users
who are interested Flipkart in near future is 23.7 and those who are satisfied is 39.3 and
who has divide opinion are interested to use is 37.
4.6. Based on past experience the people felt that transaction in Flipkart is safe.
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TABLE 4.6
2 Disagree 6 7.1
3 Neutral 22 26.2
4 Agree 37 44.1
Total 84 100
Fig 4.6
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly Disagree Neutral Agree Strongly agree
disagree
Interpretation:
The above table and graph show that based on the past experience the percentage of
respondents who doesn’t have any opinion are 26.2 and respondents who are feeling
safe are44.1 and those who felt that Flipkart is the safest place to do transactions are
21.4 and respondents who are not safe are 8.3.
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4.7. Based on the past experience the people believe that the transaction through
Flipkart is always reliable.
TABLE 4.7
2 Disagree 6 7.1
3 Neutral 25 29.8
4 Agree 33 39.3
5 Strongly agree 16 19
Total 84 100
Fig 4.7
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:
The above table and graph show that based on the past experience the
respondents who doesn’t have any opinion are 29.8 and the agreeing percentage is 39.3
and percentage without any consideration is 19. But, 11.9% of respondents do not rely
upon the transactional policies.
28
4.8. Based on past experience the people think that transaction through Flipkart
doesn’t go wrong.
TABLE 4.8
2 Disagree 10 11.9
3 Neutral 30 35.7
4 Agree 24 28.6
5 Strongly agree 16 19
Total 84 100
Fig 4.8
40
35
30
25
20
15
10
0
strongly disagree disagree neutral agree strongly agree
Interpretation:
The above table and graph show that the percentages of respondents do not agree that
anything cannot go wrong with Flipkart is 47.6 always trusted Flipkart. And the remaining
35.7% are neutral and 16.7% of the respondents are not agreeing.
29
4.9. Based on the past experience the people are confident that Flipkart will
promptly inform them if at all any problem occur with any of their
transactions.
TABLE 4.9
2 Disagree 4 4.8
3 Neutral 2 31
4 Agree 35 41.6
5 Strongly agree 16 19
Total 84 100
Fig 4.9
45
40
35
30
25
20
15
10
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:
30
The above table and graph show that majority of the respondents are confident
about the communication from Flipkart in case of any problem. While 39.4% expressed
their ignorance about this matter.
4.10. Based on past experience the people believe that Flipkart always keeps
their best interest.
TABLE 4.10
1 Strongly disagree 0 0
2 Agree 0 0
3 Neutral 25 29.8
4 Agree 41 48.8
Total 84 100
Fig 4.10
60
50
40
30
20
10
0
strongly disagree disagree neutral agree strongly agree
Interpretation:
31
The above table and graph show that almost all the respondents are favourable to
the fact that Flipkart keep up their interest.
4.11. The Number of people agrees that Flipkart ask for irrelevant personal
information.
TABLE 4.11
2 Disagree 39 47.1
3 Neutral 19 22.4
4 Agree 0 0
5 Strongly agree 0 0
Total 84 100
Fig 4.11
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:
32
The above table and graph show that 30.5% of the respondents are strongly felt
that Amazon doesn’t ask for irrelevant personal information and 47.1% of the
respondents just disagreed and 22.4% didn’t have any opinion.
4.12. The Number of people believes that online transactions in the Flipkart are
protected by the latest know-how.
TABLE 4.12.
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 26 31.9
4 Agree 36 42.3
Total 84 100
Fig 4.12
45
40
35
30
25
20
15
10
5
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:
33
The above table and graph show that 68.1% of the respondents agreed that
Flipkart protects their transactions with the latest technology and only 31.9% expressed
neutrality.
TABLE 4.13.
2 Disagree 6 7.1
3 Neutral 33 39.9
4 Agree 27 31.8
Total 84 100
Fig 4.13.
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly Disagree Neutral Agree Strongly agree
disagree
Interpretation:
34
The above table and graph show that 39.9% of the respondents are neutral in
their opinion, 9.5% disagreed and 50.6% are confident about the overall security
provided by the Flipkart.
4.14. The Number of people is familiar with Flipkart reputation.
TABLE 4.14.
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 22 26.2
4 Agree 42 50
Total 84 100
Fig 4.14.
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly Disagree Neutral Agree Strongly agree
disagree
Interpretation:
35
The above table and graph show that 73.8% of respondents are familiar with
positioning of Flipkart about 26.2% are convinced with its branding.
4.15. The Number of people feels that Flipkart has a good reputation for
honest customers.
TABLE 4.14.
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 22 26.2
4 Agree 34 40.5
Total 84 100
Fig 4.15.
percentage of respondents
45
40
35
30
25
20
15
10
5
0
Strongly disagree Disagree Neutral Agree Strongly agree
Interpretation:
36
The above table and graph show that 33.3% of the respondents are hardcore
loyal of Flipkart, 40.5% are loyal 26.2% tend to be switchers or shifters.
1 Strongly disagree 0 0
2 Disagree 0 0
3 Neutral 22 26.2
4 Agree 43 51.2
Total 84 100
Fig 4.16.
60
50
40
30
20
10
0
Strongly Disagree Neutral Agree Strongly agree
disagree
Interpretation:
37
The above table and graph show that the percentage of respondents who are
willing to strongly recommend others are 22.6% and those who are recommend others
are 51.2% and who has divide opinion are recommending others are 26.2%.
38
5.1 FINDINGS:
1. The percentage of male respondents is 56% and female respondents are 44%.
This implies that, male use more online portals for their purchases.
2. The undergraduate and post graduate are 28% and 66% and the percentage who
are only educated intermediate are 6%. The least educated among the
respondents are SSC and none of them are using Flipkart.
3. 85.7% of the respondents use more of Flipkart portals as they are employed.
1.2% who are above 41 years use less of online marketing and the teenagers and
below are also less in number.
4. Based on the past experience the percentage of respondents who doesn’t have
any opinion are 26.2% and respondents who are feeling safe are 44.1% and those
who felt that Flipkart is the safest place to do transactions are 21.4% and
respondents who are not safe are 8.3%.
5. Almost all the respondents are favourable to the fact that Flipkart keep up their
interest
6. 68.1% of the respondents agreed that Flipkart protects their transactions with the
latest technology whereas 31.9% expressed neutrality.
7. 39.9% of the respondents are neutral in their opinion, 9.5% disagreed and 50.6%
are confident about the overall security provided by the Flipkart.
8. 33.3% of the respondents are hardcore loyal towards Flipkart, 40.5% are loyal
26.2% tend to be switchers or shifters.
39
5.2 SUGGESTIONS:
1. Flipkart has to maintain trust of the consumer in B2C online shopping.
2. While men use more online portals for their purchases, Flipkart has to
concentrate and create awareness for female too.
3. Flipkart has to create more awareness on households and employees.
4. Flipkart has to build a strong trust upon their transactional policies.
5. Flipkart should yet to be convinced with its branding for customers.
6. Flipkart should concentrate and should motivate the customers to shift them to
loyal for those who are switchers or shifters.
40
5.3 CONCLUSION:
I hereby conclude that, Flipkart always concentrates on customer satisfaction,
But in Indian context many of the households prefer to feel the touch of a product
before they purchase. So Flipkart has to concentrate on households, build trust and has
to motivate, create brand positioning on online customers.
41
5.4 Limitations:
The simple integration of “social network applications” can affect “initial
trust beliefs” towards unfamiliar e-tailors and subsequent “purchase
intentions”, but it appears essential to utilize just right cue combination in
order to obtain the desired effect.
42
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Chao-Min Chiu ,Hua-Yang Lin,Szu-Yuan Sun &Meng-Hsiang Hsu,Pages 347-360 |
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Questionnaire:
I am B. Bala kiran Aditya pursuing MBA in Aurora’s PG College bearing Hall Ticket
No.2122-17-672-044. conducting a survey regarding online trust with reference to Flipkart.
So please give your opinion for completing my project
The data collected will be strictly used for research purpose and not for any other motive.
2. Are you….?
Male
Female
4. Are you
married?
Yes
No
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Please, give your opinion on the following questions
SD D N A SA
SD D N A SA
10. Based on my past experience I do believe that the transaction through my online
store is always reliable?
SD D N A SA
11. Based on my past experience I don’t think that things may go wrong with my
transaction through my online store?
SD D N A SA
12. Based on my past experience I am confident that my online store will promptly inform
me if at all any problem occur with any of my transactions?
47
SD D N A SA
13. Based on my past experience I do believe that my online store always keeps
my best interest?
SD D N A SA
14. My online store does not ask for irrelevant personal information?
SD D N A SA
15. I believe that online transaction information in the web site (of my online
store) is protected by the latest know-how?
SD D N A SA
16. I feel secure about the electronic payment system in the website?
SD D N A SA
SD D N A SA
48
SD D N A SA
SD D N A SA
SD D N A SA
49