Factors Affecting the Trust in the Online Shopping and E-commerce Success of Companies

Abstract

E-commerce and its related technologies are the most recent development of the system that involves a great potential effect on the execution of online business and economic growth as well. Therefore, this paper adds to the extant literature by scrutinizing the factors influencing the customers' trust in the online shopping system in Canada and its impact on the e-commerce success of companies. A set of hypotheses are proposed to examine these links, considering the role of factors influencing the customer trust that may be played to determine e-commerce success in Canadian companies. SPSS will be applied to a selected sample of companies in Canada. There are three objectives in this research: to find out what are the factors that influence the trust of the customer in using online shopping systems in Canada, how does the trust of the customer in using online shopping affect the E-commerce success of the company, and find effective ways to increase the trustworthiness of the seller in the eyes of the customer. As the existing literature did not pay much attention to the e-commerce success of companies as well as the role of trust making, consequently, this study intends to evaluate the links between the variables in the context of Canadian companies. This research target is to measure the public knowledge and provide guidelines for both consumers and e-marketers to improve their services and help to reduce the setback to online shopping in Canada. Also, this research can be a guide and source to other countries with similar conditions. E-commerce is an important technology that is been introduced in Canada and like any other system where there are some flaws and shortages, this research is to help and conduct a solid guide for consumers for them to gain a better understanding of the risks and benefits of using this technology and for e-marketers to help make trust among their customers.

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*Corresponding author: Email: salehi_farhang@yahoo.com;
Asian Research Journal of Current Science
3(1): 1-5, 2021; Article no.ARJOCS.320
Factors Affecting the Trust in the Online Shopping
and E-commerce Success of Companies
Farhang Salehi
1*
, Bentolhoda Abdollahbeigi
1
and Seyedyaser Sajjady
1
1
Rosha Consulting Group Ltd., Iran.
Authors’ contributions
This work was carried out in collaboration among all authors. Authors FS and BA designed the study,
performed the industry analysis and wrote the first draft of the manuscript. Authors FS, BA and SS
managed the literature searches. All authors read and approved the final manuscript.
Received 26 October 2020
Accepted 01 January 2021
Published 28 January 2021
ABSTRACT
E-commerce and its related technologies are the most recent development of the system that
involves a great potential effect on the execution of online business and economic growth as well.
Therefore, this paper adds to the extant literature by scrutinizing the factors influencing the
customers' trust in the online shopping system in Canada and its impact on the e-commerce
success of companies. A set of hypotheses are proposed to examine these links, considering the
role of factors influencing the customer trust that may be played to determine e-commerce success
in Canadian companies. SPSS will be applied to a selected sample of companies in Canada. There
are three objectives in this research: to find out what are the factors that influence the trust of the
customer in using online shopping systems in Canada, how does the trust of the customer in using
online shopping affect the E-commerce success of the company, and find effective ways to
increase the trustworthiness of the seller in the eyes of the customer. As the existing literature did
not pay much attention to the e-commerce success of companies as well as the role of trust
making, consequently, this study intends to evaluate the links between the variables in the context
of Canadian companies. This research target is to measure the public knowledge and provide
guidelines for both consumers and e-marketers to improve their services and help to reduce the
setback to online shopping in Canada. Also, this research can be a guide and source to other
countries with similar conditions. E-commerce is an important technology that is been introduced in
Canada and like any other system where there are some flaws and shortages, this research is to
help and conduct a solid guide for consumers for them to gain a better understanding of the risks
and benefits of using this technology and for e-marketers to help make trust among their
customers.
Keywords: E-commerce; digital technologies; trust; online shopping.
Original Research Article

Salehi et al.; ARJOCS, 3(1): 1-5, 2021; Article no.ARJOCS.320
2
1. INTRODUCTION
Online shopping is one of the technologies been
introduced through the advancement of
technology and the development of new
electronic services offered to market users such
as sellers and buyers. Despite the newly formed
technology and service, this market has been
growing very fast and e-commerce and online
shopping have introduced many opportunities for
its users [1]. The initial adoption of the internet as
a shopping channel does not guarantee
continued online shopping, as discontinuance
may occur at any stage of adoption due to
unsatisfactory trial outcomes or usage
experiences [2]. With the development and
adoption of the internet as a shopping channel,
Rogers states that it is entirely dependent on the
user experience, based on this online shopping
is no necessary continues over time, and
discontinuance may occur at any stage [3].
However, until today usage of this channel has
continued and every day and we can see new
ways of marketing been developed [4]. Since the
development and implementation of the internet,
there has been a lot of issues over its
acceptance and adoption as a shopping channel,
Davis et al., 1989 has developed a model,
technology acceptance model (TAM) and it has
become one of the major models used to study
any type of technological innovations, This model
explains attitudes towards information systems
and predicts use intentions and adoption and is
the most widely used theoretical system in this
field. Even though TAM has provided a complete
model to evaluate the adoption of the internet
and online shopping, Abdollahbeigi [5] states that
more in-depth evaluation is needed to determine
the factors influencing the adoption of the
internet among non-purchasing web users as a
marketing media. According to Bulut [6], even
with the growth of the internet, this technology
only serves middle and upper-class citizens.
When it comes to online shopping there are
some initial requirements that not everyone can
provide, these include having access to a
computer system, bank account, and a credit
card and of course having access t the internet
itself [7]. If we look closer at the characteristics of
online shoppers when one's level of education is
higher and they have a higher monthly income
they are more likely to be attracted to online
shopping [8]. As time goes by we can see the
evolvement and growth of the internet over the
world population. The target audience for this
channel is changing since it first came out, by
that time only the younger men with a decent
level of income could afford to use this
technology but by the year 2001 more than half
of the online users were women [9].
2. PROBLEM STATEMENT
E-commerce is a very important technology that
provides a variety of services and the ability to
browse through a wide range of products and
services to choose from, it provides much
information regarding certain products and
services and it helps customers to get more
information in less time and make better
decisions and get the best deals. Despite all the
advantages that there is to internet shopping
there are some flaws and difficulties when it
comes to online shopping, there are difficulties
regarding the payments and credits. There is the
matter of security and online privacy of online
transaction and customer information, even
though there are popular companies such as
Visa and Master Card providing security and
reliability for online transactions to take place, it
seems that they are not fully accepted as a
secure way to make payments. Customers often
don’t have enough knowledge of how to protect
their information when it comes to World Wide
Web surfing and shopping. As some of the
disadvantages, we can refer to price and
selection, lack of full cost disclosure, fraud, and
security concerns. Even though there have been
substantial investments in ICT and internet
infrastructure, Canada still suffers from a lack of
adoption of online shopping, hence other
countries prove to be more successful in terms of
online shopping penetration and adoption.
3. RESEARCH QUESTIONS
 What are the factors that influence the trust
of the customer in using online shopping
systems in Canada?
 How does the trust of the customer in using
online shopping affect the E-commerce
success of the company?
 What are the effective ways to increase the
trustworthiness of the seller in the eyes of
the customer?
4. LITERATURE REVIEW
4.1 Online Shopping
Although online shopping was one of the big
leaps into the digital world this market has not
been very successful in some regions and this
paper is to examine the behavior of Canadian

Salehi et al.; ARJOCS, 3(1): 1-5, 2021; Article no.ARJOCS.320
3
consumer in the online market, the problems,
and flaws that are causing this market to not
grow as much as other countries. Although
researchers have foreseen a high rate of growth
in this market worldwide, this market has had its
ups and down and e-commerce has not been
underestimated in the success of companies [10].
Online shopping is very technology-dependent, it
requires constant internet access with acceptable
speed for suppliers to add new products to their
online shop and for consumers to be able to
access the website compare products and make
their choices between thousands of other
products, also been able to make online
payments through trusted third parties are some
of the most important aspects [11].
4.2 Online Shopping Adoption Factors
Koehn [12], states that the adoption of online
shopping depends heavily on the users
themselves; hence not all people accept
innovations at the same level. Some
demographics and cultures are more acceptant
than others; they welcome innovations and
regulations to have a better life, yet others prefer
to keep their existing modules and tools. This
can arise from past experiences; either the
innovations are not as effective as their old
versions or not as efficient. Over the past 20
years, many modules have been developed and
offered to measure the information technology
acceptance between individuals but the module
by Davis, 1989, technology acceptance model
(TAM) has been one of the widely used and most
complete modules that have given results
regarding the technology acceptance among
different demographics [13]. However TAM has
not provided all the answers that developers and
vendors are looking for when they are about to
lunch their online service to end-users, there is
still a need for more in-depth study in this field to
offer more information and analyzed results to
have a better success rate in the online market
[14]. With regards to all the modules and studies,
there are two main parts to any innovation, the
first is the adoption itself and the second is the
continuance usage of the innovation [15]. In this
case, the success rate of usage of the internet
for online shopping proposes falls heavily under
the continuance usage of this channel as a
shopping medium [16]. The reason for this is that
factors determining the initial adoption success
rate are not necessarily the same as innovation
continuance factors yet many other factors are
influencing the continued usage of innovation
[17].
4.3 Trust in Online Environment
Many previous researchers have divided trust
into different categories to be examined and
studied Goutam [18] identified two different types
of trust, first is global trust and the second is
situational trust, but it was not used widely
because of its shortcomings, another
categorizing was introduced by Pappas [19]
study, he identified and categorized trust to three
different categories, institutional-based, process-
base, and characteristic-base. Institutional-based
trust is built within the economical frameworks;
it’s mainly based on the trusted third party and
includes certification and regulations [20,21]. A
process-based trust also called trust in previous
and coming experiences; relies on the previous
experiences with that party. for example,
previous shopping experiences from a vendor on
eBay is displayed as a success rate on the
website and other users can make transactions
by placing their trust in the experience and
vendor rating. Characteristic-based trust is based
on the vendor’s characteristics, in terms of social,
ethical community, and familial [21].
5. RESEARCH FRAMEWORK
The theoretical framework is a combination of
past researches finding with regards to trust
issues in online shopping. Fig. 1 shows the
conceptual framework of the study and factors
that can affect trust in online shopping and e-
commerce success of the companies.
6. METHODOLOGY
The software that will be used to analyze data in
this research is SPSS; it will include analysis
such as descriptive analysis, frequency analysis,
normality test, Collation analysis, and
Coefficients Analysis. Descriptive analysis is
defined as the analysis that helps for better
understanding of the target population that is
analyzed, their gender, age, demographics, and
other personal attributes are presented along
with graphs to help study them. Correlation
Analysis helps the researcher to find that the
connection between independent variables and
the dependent variable is strong enough and any
change in the dependent variable can be explain
using independent variables. Coefficients
Analysis is used to compare the significance of
different variables concerning the dependent
variable and their influence over the dependent
variable. Coefficients Analysis is one of the

Salehi et al.; ARJOCS, 3(1): 1-5, 2021; Article no.ARJOCS.320
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Fig. 1. Research framework
important analyses in this research where it can
help us to gain a better understanding of the
relationship between each variable.
7. FINDING, RESULTS AND DISCUSSION
The objective of this research is to categorize
and moves step by step starting by identifying
the major locations and provinces that e-
commerce and online shopping has suffered the
most, this shouldn’t be hard and can be achieved
by using surveys and random selections from
different provinces. Findings of this research can
determine if there is any relation between
incomes and online shopping, statics indicates
that more income will result in more spending like
shopping, etc. It is important to know if this is
also true for online shopping, there is a need to
research how easy people can access online
credits and do online transactions do banks offer
any type of services or if there are any private
companies that offer to provide service for online
transactions, find the level of trust among people
toward online shopping and products and
services offered online, and impact of technology
acceptance especially online marketing and
shopping for both consumers and marketers.
8. CONCLUSION
Since the penetration of the internet and online
shopping follows the same steps in many
countries, Canada also follows the same
regulations. Difference in the variables
influencing the trust factor in online shopping in
other countries is based on the beliefs and moral
values of that culture. These beliefs can help to
boost the trust variable in online shopping or they
can cause customer to hardly trust the internet
merchant. The trustworthiness of the internet
merchant can be reflected through many factors,
stating past experiences from other users can
help merchants to build trust and increase their
level of trustworthiness among other merchants.
this has direct relation with web and interface
design. Development and adoption of online
banking in Canada have a great impact on the e-
success of the companies as this greatly helps
internet merchants to offer their products and
make online transactions easily and also helps
the customers to make online purchases without
having to worry about the security of their
transaction.
COMPETING INTERESTS
Authors have declared that no competing
interests exist.
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