The Malaysian e-commerce is considered by the majority of leading experts to be in the early stage of development. Consumers are still studying the brands available online and what each brand can provide them. SKMM (2010) stated that 66.3% of our consumers are still choosing to shop in a physical store that enable them to have the privilege of inspecting the goods without having to worry about the security of e-commerce. Furthermore, since 59.1% of the consumers are expressing their disbelief of e-commerce while 58.7% of the consumers do not find digital marketplaces provide enough safety, Alam and Yasin (2010) studied the factors influencing consumer trust by taking data from the purchasing of flight tickets over the internet.
Consumer behavior is reportedly to be influenced preferably through word-of-mouth (WOM) compared to other means of marketing communications, be it advertising and publicity. Ha (2004) mentioned that WOM is one of the key drivers of brand trust because as it is proven to increase consumer awareness, expectations, perceptions, attitudes, behavioral intentions and behavior. Alam and Yasin (2010) agreed that brand trust can be instilled successfully with the existence of positive WOM, hence concluding that there is a strong, positive relationship between WOM and the level of trust possessed by the consumer.
One of the reasons consumers are reluctant to trust the digital marketplaces is because they are hesitant to provide their personal details, especially when it involves credit card. Unlike high-performing e-commerce economies, ours lacks of high-end security features which causes Malaysian consumers feeling insecure and lacking of trust in the internet. According to a 2013 survey carried out by Rakuten Online Shopping, an internet service company and owner of Malaysian marketplace, 83% of the respondents agreed that a secure website and transaction is the most important element that persuade their online shopping decision. Hence, the decision of the people in Malaysia buying their flight tickets over the internet is mainly prompted by the high level of security system offered by the marketplace towards the consumer’s personal information and transaction being disclosed to third parties (Ha, 2004; Alam and Yasin, 2010).
Alam and Yasin (2010) stated that there is a strong, negative relationship between perceived risk and the level of brand trust attained by consumers. Perceived risk can be categorized as economic risk, performance risk and purchasing risk. Consumers are terrified over the issue of monetary loss from online purchasing decision, the level of security in digital marketplace website and having to deal with products or services that do not meet the requirements as advertised. Therefore, the greater the amount of perceived risk that consumers have in online purchase transaction, the greater the impact on a certain brand.
In order to convince consumers to make more purchases online, it is important to set up a useful website with detailed and quality information. The engaging, authentic and relevant information ensures the consumers to have a good online experience as they get the opportunity to build a good rapport with the brand available on the digital marketplaces. Plus, quality information has the ability to increase consumers’ knowledge and awareness of the brand. Brands that are willing to invest their time and money into perfecting their functioning websites are considered to portray their level of commitment to their customers. A seamless user experience will eventually increase their consumers’ perception of their brand and trust.
To make the digital marketplaces fair, the aforementioned factors could serve as a guideline for marketers in understanding the development of brand trust. Sellers should identify the factors that prompted customers to buy certain items or services over the internet. This is to make sure that businesses can always execute an effective plan to make their businesses more profitable at the end of the day. In addition, consumers can have the luxury of better services which will be greatly contributing to their confidence in digital marketplaces.
Trust is earned, but it can also be broken. So, show your commitment and install it into the basis of your company so everyone is onboard.
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