MALAYSIAN CONSUMER’S AWARENESS ON DIGITAL MARKETPLACE ISSUES

The e-commerce which was first introduce in the mid-1990s has been recognized globally as a multi-trillion dollar industry over the last 10 years. As for the Malaysian e-commerce, it is maneuvered rapid knowledge driven economy and ICT enablement. Furthermore, 6 out of 10 Malaysians preferred to buy flight tickets online, 58% Malaysian bought movie and performance tickets online while nearly quarters of Malaysian survey respondents utilized social media to look for promotion code while shopping on digital marketplaces (Mukhtar et al., 2016; Fathil Asri, 2015; Nelson Global Survey, 2014). This clearly shows that Malaysian consumers are accepting the existence of e-commerce with open arms especially due to the development of internet and technology. 

According to the Department of Statistics Malaysia (2016), it has been reported that age 15 and above using the internet was at 57% in 2013 while the percentage has increased by 14.1% to 71.1% in 2015 where most of them were using their mobile devices to surf the internet. Today, consumers be it adults or teenagers are actively making use of the internet, consequently contributing to the steady growth of the e-commerce. Unfortunately, Malaysian consumers are only willing to go digital using the latest technology if and only if they are shown a real evidence or positive development from other superior foreign countries (Che Mohd. Zulkifly, 2014). Although the e-commerce industry contributed to USD984 million the Malaysian revenue, there are still issues concerned by both businesses and consumers such as security and customer safety (Krishnan et al., 2017).

The level of internet security has been one of the fears to businesses and consumers to engage with e-commerce (Niranjanamurthy and Chahar, 2013). Generally, both parties want to protect themselves from such harms namely unauthorized access, uses, alteration and destruction. E-commerce security offers three essential component data security, network security and privacy of the customers. Furthermore, many businesses are updating their security system to prevent risks, consequently contributing to the efficient digital marketplaces. On the other hand, consumers are still doubting the digital marketplace due to their perceived risks involved (Muthaiyah et al., 2011). Thus, to ensure their security and privacy are protected, it is vital for consumers to enrich their knowledge on how to safeguard their highly confidential personal information and consumer rights.

Next, customer safety remains as the common issue be it in any activities (Cagaoan et al., 2014). E-commerce or digital marketplace is operated in global network internet which is entrusting. Henceforth, because confidentiality is listed as the requirement, it is also a must to keep it away from all kinds of threats. Moreover, customer awareness on digital marketplaces’ security is increased through the deployment of the Consumer Protection Act in 2007. Plus, the Consumer Protection (Electronic Trade Transactions) Regulation 2012 was introduced in 2013. These regulations that come with certain obligations to digital marketplace are implemented with aims to consumer’s confidence in making online transaction and shopping. Once these regulations are imposed, other than making the growth of the digital marketplace industry to spur, it is predicted that the people in Malaysia will be persuaded to access the e-commerce platform without hesitation.

GO-TO MARKET OPERATIONS AND EXECUTION

These days, social media such as YouTube, FaceBook and Instagram are not foreign to us. Social media can be helpful to us especially when we are about to buy something for the first time as it provides a platform where previous buyers could voice out their experiences or reviews of the purchased products. According to Nielsen (2007), the existence of social media not just allowing companies to promote their business to the society at large at such a low cost, but also aids in creating trust with the audience since there is a lack of trust among customers in most forms of advertisements. This consequently drive business companies to focus more on social media since it is gradually taking control of the brand reputation of companies (Kaplan & Haenlein, 2010). 

Social media platforms offer opportunities to build value-added content for customers and to monitor negative customer sentiment. On the other hand, there may also be potential harms where companies may be encountering enraged customers who are believed to be value destroyers instead of value creators (Verhoef, Beckers & van Doorn, 2013; Verhoef, Reinartz & Krafft, 2010). Hence, companies are striving on dealing with the social environment as it is with the traditional way companies pursued marketing. According to Verhoef et al. (2013), the effort of interacting with customers through social media may be exposing companies to a weaker control. Companies may be at worrying state as the risks of a lack of control is a lot larger especially for strong brands in particular. For example, there is a risk of customers who use the opportunities to tarnish the companies’ established brand value. Henceforth, companies should be extremely cautious in managing the activities pursued.  

There are a few ways implemented by firms to manage brand health with social media. Firstly, about 49% of the firms created value-added content or services for customers on social media platforms and forums. Furthermore, 44% of the firms supervised brand mentions and sentiments in social media forums and addressing negative messages directly. Next, around 25% of the studied firms recognized influential discussion forums and joining in discussions about the brand while the other 22% of the firms reached out to key online opinion leaders to serve as brand advocates. Finally, an amount of 14% hired a third-party service provider to manage brand interactions in social media and other online forums (Leeflang et al., 2013).

GOODS ARE FAULTY? WARRANTY!

Although e-commerce is still developing and maturing rapidly in Malaysia, there are a few areas that need to be focused on in dealing with consumer protection. Other than being scammed by unethical sellers, online buyers are actively expressing their concerns regarding the warranty of their purchased goods. In general, any user guides are attached to the products being sold and return or exchange policies are often posted on the merchant’s website. Consumers are advised to register with them and store any proof of payment be it receipt or bill with them should any events occur. 

 Nevertheless, the warrant claim process could be tiring for buyers as it took quite some time to settle, which could lead for months. On the contrary, from a study carried out by Mukhtar et al., (2016) stated that half of the consumers mentioned that the process of claiming warranty for a product bought online usually required less than 14 days to accomplish. This issue arises because of several factors. Other than the delays, consumers are always denied of warranty because of the dispute between the service centres and their respective brands, together with the lack of service centres in the buyer’s location. 

In other cases, warranty claims are often ignored due to the absence because purchasers do not acquire formal bills from the sellers. Furthermore, the negligence of the dealer to stamp or sign the warranty card may decline the purchaser’s rights. Plus, due to the component being phased out by the goods manufacturer despite the products are still under warranty, dealers are not able to cover any future warranty claims. The issue involving the product life-cycles and growth in outsourcing is evident when purchasers buy items belong to the computer industry. 

It is important for both purchaser and dealers need to be certain that the warranty card is stamped with a clear date of purchase. Consumers should always keep in mind to check the expiration date of the warranty and the conditions that may void coverage. Also, it is recommended for consumers to look for conditions that could prove expensive or inconvenient especially when buyers need to deliver a heavy purchase to a factory for service. Lastly, because the e-commerce in Malaysia is lagged behind approximately 3 to 5 years when compared to industries in the US (Mukhtar et al, 2016), both stores and brands should come up with a feasible solution to resolve their issues. 

CUSTOMERS WHO LOVE ONLINE SHOPPING: WHAT ARE OUR RIGHTS FOR FAIRER DIGITAL MARKETPLACES?

From the previous year, it was reported that e-commerce sales has reached up to the amount of 2.29 trillion (USD) globally and the amount is expected to climbed up to 4.49 trillion (USD), which would be double the existing value by 2021. Consumers from all walks of life for could buy or book anything online. For example, due to the booming of e-commerce in Pakistan, working women are doing most of their shopping online (The Tribune Express, 2018). We can see that e-commerce has change how the way people shop, offering customers more options apart from creating products and services accessible. 

Although this might seem interesting, 70% of online customers are feel that there still issues arising namely scams or fraud whenever they are making online transactions when purchasing goods over the internet (The Express Tribune, 2018). Some people still disapprove the idea of online shopping as they fear unexpected and dishonest costs, illegal and fraudulent scams or unfair, unclear and confusing business practices. Consequently, the digital economy could be experiencing a significant impediment in further development if consumers do not trust businesses. It is no use for companies to serve so many choices on such a convenient scale never seen if the customers feel discouraged from using the advanced technology. 

Hence, there is an obligation to consider a customer perspective to the policy framework because it is vital to gain trust in e-commerce as compared to the traditional way of business. A few steps have been implemented to combat this issue which include developing supportive financial services regulations, provide import and export regulations as well as establish and regulate e-commerce establishments. Furthermore, when customers are provided with a strong, safe and secure internet access across the country, customers shall feel safe and confident when online shopping. Plus, business companies should address clear terms and conditions, fair pricing and good redress procedures as growth on the supply-side of the digital market presupposes consumer trust on the demand-side of the market. Business companies, especially in Malaysia, need to have a strong e-commerce policy which benefits both parties where the business can be safeguarded while at the same time focusing on the customers.

HOW EACH COUNTRY IS CREATING A FAIRER DIGITAL MARKETPLACE

The rising of technology and e-commerce has change the way people shop not just in our country but also globally. According to a survey by comScore, an analytics firm and UPS, it was reported that consumers are now purchasing more goods over the internet than going to the physical stores. Furthermore, from 5000 consumers involved in the survey, shoppers made 47% of their purchases over the internet back in 2014 while in 2015, the percentage has increased up to 51%. This however, does not come without its fair share of challenges for consumers. Such issues occur when consumers make their purchases through social media sites run by smaller companies or individuals who do not provide adequate security features or secure payment methods. 

So, it is a must that digital marketplaces should offer a fair and secure shopping environment where customers shall obtain a compensation without causing too much burden and expenses should things go wrong during the transaction made. The recent World Consumer Rights Day 2018 aimed to provide a fair and secure internet access for all in combating fraud and scams as well as better consumer protection online. 135 members from more than 90 countries are now participating in this move and FOMCA is one of them. Many countries are coming up with numerous actions to maximize the use of technology at the same time protecting the consumers in a new market that go beyond physical borders. 

The United States of America plays a part in providing a fair consumer regime while taking care of the trader and industrialist with the help of media. In the United Kingdom, consumers are given guidance and protection, thanks to the magazine, WHICH. Furthermore, the Department of Trade and Industry aids in safeguarding and protecting consumers by providing quality goods at a reasonable price. In addition, customers residing in EU countries are protected by EU regulations.  Meanwhile in Asia, Singapore and Hong Kong are a step ahead where consumers are educated from the airport onwards. 

Based on these various implementations, we see that it is time for us global citizen to learn the significance of observing and enforcing consumer rights. It is time for us to minimize or prevent such things be it frauds or scams so that we can create a fairer marketplace for each and every one of us. Since we have plenty social media sites available just at the end of our fingertips, we can spend some of our time for a good cause. As an individual, you are welcomed to call for fairer digital marketplaces by using the hashtag #BetterDigitalWorld. It’s now or never, ladies and gentlemen!