Next, we would like to express our gratitude to the people who contributed their time and effort and gave us encouragement, help and recommendations to complete the research project. Finally, we would like to thank our classmates for their support and also their willingness to help complete this research project.
Introduction
Research Background
Over the past few years, companies and enterprises in all parts of the world have experienced various changes in their business information systems. The first is the variety of information, but also the type of information on the site and the sufficiency of the information.
Problem Statement
By simply entering credit card or other payment information on the website, the products can be purchased on the website itself. Either way, this belief depends on the level of risk perceived by consumers, as well as their level of control over the information they must and must exchange with the web vendor or company (Jennings & Seaman, 1990).
Research Objectives
General Objectives
Specific Objectives
Research Questions
Hypotheses of the Study
Significance of the Study
In order for consumers to buy online, some determinants have motivated and allowed them to do so and to place trust in online transaction and the security promised within it. It is extremely important for this research to find out the causes behind all the determinations and the factors that lead to trust in order to create brand loyalty and purchase intention.
Chapter Layout
Methodology describes the techniques used to collect data and the methods of data collection used in the research. A software called Partial Least Square (PLS) path modeling is used to examine all data collected.
Conclusion
The results of the analysis will be presented in the tables and graph illustrated by PLS. In chapter 5, it shows the summary of the research findings, statistical analysis and discussions of main findings.
LITERATURE REVIEW
- Introduction
- Review of the Literature
- Loyalty
- Purchase Intention
- Service Quality
- Word-of-Mouth Communication
- Customer Satisfaction
- Brand Recognition
- Security
- Consumer Trust
- Review of Relevant Theoretical Models
- Conceptual Framework
- Hypotheses Development
- The Association between brand recognition and consumer trust
- The Association between service quality and consumer trust
- The Association between customer satisfaction and consumer trust
- The Association between security and consumer trust
- The Association between word-of-mouth communication and consumer
- The Association between consumer trust and purchase intention
- The Association between consumer trust and loyalty
- Conclusion
Lin and Heng (2015) researched that most consumers will observe product word of mouth before purchasing. According to the study of Jiang, Jones & Javie (2010), consumer trust acts as a coordinator between the successful buyer and seller relationship.
METHODOLOGY
- Introduction
- Research Design
- Data Collection Methods
- Primary Data
- Secondary Data
- Sampling Design
- Target Population
- Sampling Frame and Sampling Location
- Sampling Elements
- Sampling Technique
- Sampling Size
- Research Instrument
- Design of Questionnaire
- Construct Measurement (Scale and Operational Definitions)
- Scale of Measurement
- Origins of Construct
- Data Processing
- Data Checking
- Data Editing
- Data Analysis
- Descriptive Analysis
- Scale Measurement
- Inferential Analysis
- Conclusion
It is a process or procedure of collecting data from various measurements and sources to find the answers to the research problem. This reflects the authenticity and reliability of the data, as the collected results are the true opinion of the respondents. The 38-question questionnaire provided sufficient and detailed information for the reliability and accuracy of the test.
However, the secondary data must be well aware as it can reduce the accuracy of the data due to outdated information and not meet the requirements of the research. Sampling frame brings the meaning of the list of all units in the population that can be sampled, such as individuals, household or institution. To increase the accuracy of the data, the questionnaires are distributed virtually to the relevant respondents across Malaysia instead of physically.
The data collected through the Google Form relatively increased the diversity and comprehensiveness of the sample frame. This is the first step of data processing to ensure that all questionnaires are fully completed by the respondents and that no question is left out by the respondents.
RESEARCH RESULTS
Introduction
Descriptive Analysis
- Personal Characteristic of Respondents
- Central Tendencies Measurement of Constructs
The result showed that the largest group of respondents is between 18-24 years old which contributes 34.7%. The result showed that there are 9.3% of respondents secondary school consisting of 28 respondents, 14.3% of respondents are college diploma consisting of 43 respondents, 64.3% of respondents are bachelor's degree consisting of 193 respondents and 12% of respondents are graduate degree consisting of 36 respondents. While only 3% of the respondents have no income which consists of 9 respondents and 1.3% of the respondents are students which consists of 4 respondents.
According to the table below, the result showed that most of the respondents have 5 years of experience in online purchasing. 15.7% of the respondents consists of 47 respondents. There is 11% of respondents with 1 year of online purchasing experience, of which 33 respondents, 27% of respondents have 2 years of online purchasing experience, of which 81 respondents, of which 25%. The table below shows that most of the respondents bought clothing and footwear online, this is 36.7% of the respondents and consists of 110 respondents.
There are 13% of respondents bought cosmetics and jewelry online which consists of 39 respondents, 12.3% of respondents bought computers and accessories online which consists of 37 respondents, 7.7% of respondents bought books online which consists of 23 respondents, 10.7% of respondents bought home appliances and 10.7% of respondents bought online products and 432 of respondents bought online products and 43 2 respondents bought online products consists of 42 respondents and 0.3% of the respondents bought bags via online which consists of only 1 respondent. There are 27% of respondents from Selangor, which consists of 81 respondents, 8% of respondents from Pulau Pinang, which consists of 24 respondents, 9% of respondents from Johor, which consists of 27 respondents, 18.7% of respondents from Perak, which consists of 56 respondents, 1% of respondents from Kedah, which consists of 2% of respondents from Malaga, which consists of 2cca 3 respondents.
Scale Measurement
- Reliability
- Validity
- Discriminant Validity
Cronbach's Alpha value of customer satisfaction is 0.821 (> 0.70), therefore it is acceptable in the research. Whereas, loyalty is the lowest average variance extracted from all variables which is 0.564 (> 0.50). The mean value of Variance Extracted of consumer trust is 0.690 (> 0.50) therefore it is acceptable in the research.
The mean Variance Extracted value of Brand Recognition is 0.675 (> 0.50), therefore this is acceptable in the study. The average Variance Extracted value of customer satisfaction is 0.737 (> 0.50), and is therefore acceptable in the study. Meanwhile, the average Variance Extracted value of his purchase intent is 0.746 (> 0.50), therefore it is acceptable in the study.
The average Variance Extracted value of security is 0.767 (> 0.50), therefore it is acceptable in the study. The average Variance Extracted value of quality of service is 0.666 (> 0.50), and is therefore acceptable in the study.
Inferential Analyses
- Significance Test
- Assessment of Structural Model
R square (R2) explains the predictive power of the model, which means how well the model can be explained by the latent variables. According to Hair et al. 2016), the value of R2 ranges from 0 to 1 and the higher the value, the higher the predictive accuracy of the model.
Conclusion
DISCUSSION, CONCLUSION AND IMPLICATION
Introduction
Summary of Statistical Analysis
- Descriptive Analysis
- Scale of Measurement
- Reliability Test
- Validity Test
- Inferential Analysis
- Assessment of Structural Model
For the purchase experience, most respondents have 3 years of online purchase experience, of which 75 respondents (25%). The mean or mean used to derive the central tendency of the data in question. It is determined by adding up all the data points in a population and then dividing the total by the number of points.
The spread of variable data points from the mean is also determined by the points given by the standard deviation. Based on the reliability test conducted using all the data of the 300 respondents, we have concluded that the Cronbach's Alpha value or alpha coefficient of the safety variable is the highest with a value reading of 0.924 followed by service quality with 0.889, consumer trust with 0.887, word of mouth communication with 028-0, purchase in word of mouth with 0.0. 1, loyalty with 0.807 and brand recognition with 0.760. Since all the values are above the 0.7 mark, it means that all the variables or constructs have strong internal consistency.
Based on the validity test done using all data of the 300 respondents, we concluded that the average variance extracted from the security variable is the highest with a value reading of 0.924 followed by service quality with 0.889, consumer trust with 0.887, word of mouth communication with 0.873, with customer loyalty,0.21,0,0. 807 and brand recognition with 0.760. According to Hair et al. 2016), R2 value varies from 0 to 1, and the higher the value refers that the higher predictive accuracy of the model.
Discussion of Major Findings
- Brand Recognition
- Service Quality
- Customer Satisfaction
- Security
- Word-of-mouth communication
- Brand Loyalty
- Purchase Intention
Based on the research analysis and results, we know that service quality shows a significant correlation with consumer trust. Based on the research analysis and results, we know that security shows a significant correlation with consumer trust. Based on the research analysis and results, we know that word-of-mouth communication shows a significant correlation with consumer trust.
Based on analysis and research results, we know that brand loyalty shows a significant connection with consumer trust. Based on the analysis and research results, we know that purchase intention shows a significant connection with consumer confidence.
Implications of Study
- Managerial Implications
This study will be able to help the online sellers or business owners to overcome the major challenges and eliminate the obstacles in the e-commerce platform. This will help the government to evaluate the growth and importance of e-commerce that has contributed to the economy of the country.
Limitations of the Study
Recommendation for Future Research
Conclusion
A trust-based consumer decision-making model in e-commerce: the role of trust, perceived risks, and their antecedents. Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Adoption Model Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Adoption Model. The following items relate to aspects of consumer trust, loyalty and purchase intent in e-commerce between you as a consumer and a particular online retailer (of your choice).
I will likely purchase product(s) from this seller's site in the near future. I encourage friends and others to do business with this online seller I have in mind. I did the right thing when I decided to use this online seller that I have in mind.
In my opinion, my current online supplier has a good image in the minds of consumers.
