Investigating the Associated Factors of Trust on Online Transactions

Abstract

Although e-commerce is growing rapidly, it has not achieved its potential. A survey shows that more than fifty percent of online carts are abandoned. This paper investigates the associated factors of trust that influence customers in conducting online transactions. Through relevant literature study and questionnaire, this paper shows that privacy and security significantly affect customers' interpersonal trust on online transactions. The lower the customer perception of risk, the more they are inclined to conduct online transactions. The quality of the website also affects the customers' trust on online transactions. These aspects are strongly correlated to the reputation of the online merchants, which implicates the success of e-commerce itself.