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UNIVERSITITEKNOLOGI MARA

THE INFLUENCE OF SOCIAL MEDIA IN INCREASING CUSTOMER TRUST

IN M-COMMERCE

NURULHUDA BINTIAZIZI

IT Project submitted in partial fulfillment of the requirements for the degree of

Master of Science in Information Technology

Faculty of Computer and Mathematical Sciences

July 2015

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AUTHOR'S DECLARATION

I declare that the work in this IT Project was carried out in accordance with the regulations of Universiti Teknologi MARA. It is original and is the results of my own work, unless otherwise indicated or acknowledged as reference work. This IT Project has not been submitted to any other academic institution on non-academic institution for any degree or qualification.

I, hereby, acknowledge that I have been supplied with the Academic Rules and Regulations for Post Graduate, Universiti Teknologi MARA, regulating the conduct of my study and research.

Name of Student Student I.D. No.

Programme Faculty

IT Project Title

Signature of Student Date

Nurulhuda binti Azizi 2010421052

Master of Science in Information Technology Computer and Mathematical Sciences

The Influence of Social Media in Increasing Customer Trust in M-Commerce

....If.

July 2015

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ABSTRACT

Social media generally refer to media used to enable social interaction.

Customer behaviors are changing with the influence of social media and smart phones nowadays. Trust has been stated to be a significant factor influencing the acceptance of mobile commerce services. With the increase usage of mobile users browsing social media every day, social media and customer trust become a new research area to be explored. The aim of this study is to identify the influence of social media in increasing customer trust in M-Commerce. This study focuses on four factors;

interactivity, platform quality, security and transparency. Data were collected using survey questionnaires which were carried out among 200 of mobile users in Malaysia. All the accumulated data was processed using Statistical Package for the Social Science (SPSS). Pearson correlation and ANOVA analysis were used to test the research questions. The findings provide evidence that security is the most dominant factor that influences the customer trust in M-commerce websites. It is also proven that level of customer trust is high among mobile users. The results also shown that three of the factors have significant relationship towards customer trust, while only transparency displayed low significant relationship.

ii

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ACKNOWLEDGEMENT

Foremost, I would like to express my sincere gratitude and appreciation to my supervisor, Puan Rogayah Abdul Majid, for her continuous support, patience, motivation, enthusiasm, and immense knowledge. I am extremely thankful and indebted to her for sharing expertise and valuable guidance and encouragement extended to me in completing this thesis.

I would like to express my gratitude to my examiner, Puan Fauziah Redzuan that involves in this thesis whose advices and insight was invaluable to me to finish this thesis.

I would also like to thank all my families especially my father, Prof. Madya Dr Azizi Yahaya and my mother, Puan Asmah Suboh for always believing in me, for their continuous love and encouragement throughout this journey. Not to forget my siblings. Without your help, I may not be able to complete this thesis. May Allah bless us all with success, health and happiness.

Special thanks to my husband, Ahmad Nukhaa'ai Ahmad Puat for supporting me in good and bad times. Thank you for your patience, motivation and loVe during my difficult times throughout this journey. May Allah bless us with more happiness and success with our children, Nur Qisya Damia and Muhammad Adib.

Not to forget many thanks to my friends who directly or indirectly, have lent their hand in this venture.

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TABLE OF CONTENTS

Page

AUTHOR'S DECLARATION i

ABSTRACT ii ACKNOWLEDGEMENT iii

TABLE OF CONTENTS iv LIST OF TABLES vii LIST OF FIGURES xi

CHAPTER ONE: INTRODUCTION 1

1.1 Project Background 1 1.2 Problem Statement 3 1.3 Research Questions 4 1.4 Research Objectives 4 1.5 Research Scope/ Limitation Of The Study 4

1.6 Research Significance 5

CHAPTER TWO: LITERATURE REVIEW 6

2.1 Introduction 6 2.2 Social Media 6

2.2.1 Advantages of Social Media 7

2.3 E-Commerce 8 2.3.1 Advantages of E-Commerce 9

2.4 M-Commerce 10 2.4.1 Advantages and Disadvantages of M-Commerce 10

2.5 Customer Trust 11 2.5.1 Trustworthiness Attributes 12

iv

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