THE INCREASING PREVALENCE OF DIGITAL MEDIA AND HOW IT AFFECTS BUSINESS FIRMS

It is no surprise that these days, companies are commonly utilizing their home pages, emails and social media as their current use of digital channels in their daily business. Furthermore, Leeflang et al. (2013) observes that mobile applications are viewed as the biggest growth areas for companies over the years, hence companies are expected to increasingly adopt these channels in their marketing operations to reach out their existing and potential customers. Those in marketing are expected to change from tactical mobile efforts to more transformative mobile marketing strategies in the next couple of years. Unfortunately, there is not enough evidence from a scientific publication that proves the effects of mobile marketing on metrics. 

The study carried out by Leeflang et al. (2013) proves that the rapid existence of digital media and tools in marketing have dramatically affected business companies. For example, interacting and serving customers via new channels has the most dominant change especially in companies that provide financial services. Moreover, the latest utilities allow the companies a significant amount of access to data and insights, as well as the ability to reach new customer segments. The companies in this study also suggested that these changes are a lot greater than other changes be it the entry of new competitors and the change in balance of power with established value chains. This in turn signifies that the marketing strategies of firms from all sectors experience a significant impact from the digitalization of media.

Due to the digitalization, marketing executives are now facing various challenges that can be out of their control such as the complex and ever-changing markets. Thus, business companies are always finding feasible solutions in order to keep up with the problems arising (Day, 2011). Although the majority of the companies claimed that they would be tackling the challenges with effective plans, there may be huge opportunities for lagging companies too. Such firms considered digital revolution as a moderate challenge as well as the management of the automated interactions with customers via digital self-service which includes online banking and online check-in. Apart from that, the price transparency issue is a serious issue as many companies from many different sectors are highly affected by plethora of free digital price comparison services which may cause price and margins erosion during economic recessions.

SEAMLESS ONLINE EXPERIENCE IN 2018 AND HOW IT IS DONE

In 2017, the online shopping sphere has been expanded all due to the rapid growth of the e-commerce market in Malaysia. Many businesses based in Malaysia are grabbing this opportunity by going digital. Furthermore, a penetration rate amounting to 2.5% is witnessed in the Malaysian e-commerce industry (Kim, 2017). However, 2018 is the year where the e-commerce penetration rate in Malaysia is expected to double, anywhere between 4% to 5% (Kim, 2017). Hence, it is time for digital marketers to step up their game by continuously innovating their services and offerings, supporting the development of the industry and surpassing the expectations of consumers. 

These days, other than taking the advantages of digital marketplaces to help them organizing their day-to-day expenses, consumers are looking forward to more options for payment. The Visa Consumer Payment Attitudes Study (2016) reported 7 out of 10 Malaysians are willing to utilize mobile wallets while 68% of Malaysians prefer the use of contactless payments instead of cash. Plus, online shoppers will not have to deal with the long queue at the ATM and businesses can operate with the minimal amount of investment, cost and risk. For instance, SMEs and micro-businesses are going cashless while enjoying a low merchant discount rate of 0.8% through the utilization of mobile payment applications such as vcash offered by Digi. After much consideration, many digital marketers are striving to provide a wider assortment of convenient and popular payment options for online shoppers. 

Would you believe that 80% of users are reportedly leaving the cart during the checkout process? According to Forbes (2014), consumers are more likely to the tab, without having to complete the transactions all because of the laborious and tedious process. In addition, digital marketplaces are suffering losses due to cart abandonment. Thus, digital marketplaces are ought to design a sophisticated, friendly and easy checkout system. Besides that, due to the massive information leaks from the internet becomes one of the factors of abandonment, digital marketplaces are introducing security feature onto their websites. 

Other than wishing for a fast delivery, consumers nowadays are anxious and curious about the whereabouts of their purchases. They would like to know the current location of the items and when they would be arriving at their doorstep. Hence, digital marketplaces are providing a greater transparency on product delivery by informing their customers the tracking numbers through a comprehensive tracking system. For example, Photobook Malaysia comes up with its own intelligent application where the progress of the ordered items is updated from time to time and should customers face any difficulties, their friendly customer care service is always ready to assist. 

With these strategies, the Malaysian e-commerce prospect in 2018 will be on the right track to succeed as well as making the digital marketplaces for both businesses and consumers.

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! 

WHAT MAKES SKEPTICAL MALAYSIAN CONSUMERS TO PURCHASE ITEMS ONLINE WHEN PERSONAL INFORMATION AND MONEY ARE INVOLVED?

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. 

FIGHTING CYBERCRIMES

The Electronic Commerce Act 2006 remains as one of the essentials primary source of electronic commerce directory for the private sector. The act has been improved by the existence of Electronic Government Activities Act 2007, which considers the same matter to those belong in the government sector. In addition, the Electronic Commerce Act 2006 is not another new act but it is in fact identical to the United Nations Electronic Communications Conventions. Furthermore, digital signatures are protected by the Digital Signature Act 1997 whereas the Electronic Commerce Act 2006 focuses on electronic signatures. 

As consumers, we should all be familiar with the Consumer Protection Act. Apart from demanding the minimum product standards, with this act, we have the rights against repression practices. In 2007, an amendment has been made to this act where it has expanded its focus to provide protection in e-commerce transactions. Due to the many issues of internet security, once again this act has been reviewed to improve the standard safety condition for services while security to consumers in a regular form contract. In addition, the effort of boosting the consumers’ confidence to perform online shopping can be seen through the implementation of Consumer Protection Regulations 2012. The guidelines highlight the requirement on online sellers and online marketplace operators, which are viewed to have a positive impact to our country’s e-commerce growth. 

Malaysian Communications and Multimedia Commission (MCMC) was founded to regulate the information technology and communication industries. The Communications and Multimedia Act 1998 drives the Commission with a powerful authority to manage online speech and preventing individuals from releasing indecent or false promotion with the intention of threatening or harassing any other individual. Although the Malaysian Government has vowed not to censor the internet, those who fail to obey this may be facing criminal penalties. 

There are exactly 4 categories of activities related to unauthorized entry into computer systems which are barred by the Computer Crimes Act 1997. According to section 3, this includes the act of committing with the intention of securing unauthorized access to programs or data stored in any computer. Next, section 4 explains on the act of intending to secure unauthorized access to programs or data stored in any computer in order to commit fraud or dishonesty. Meanwhile, section 5 elaborates on the acts committed with the knowledge that the act will prompt unauthorized modification of the content of any computer. Lastly, section 6 mentions the unethical communication of any password, code or means of access to a computer to any person who is not authorized to receive the same. Although these provisions are concerning to computer crimes field, the provisions in e-commerce laws and copyright laws have complemented the legislation of Malaysia’s cybercrime, at the same time more appropriate with international standards.  

PROVIDING ONLINE DISCLOSURE; WHY DOES IT MATTER?

Businesses embarking on digital marketplaces should at least provide a clear, accurate and easy to access information about their identities. For instance, businesses should justify the identification of the business, provide prompt, easy and effective consumer communication with the business, appropriate and effective resolutions regarding any disputes, service of legal process in domestic and cross-border disputes and the location of the business. This is to ensure that the customers shall have sufficient details when making an informed decision concerning a particular transaction. Furthermore, when businesses announce their membership in any relevant self-regulatory programme, business association or other body, consumers may use the opportunity to take advantage of the dispute resolution mechanisms provided by the organization should any issues arise.

Besides that, they should justify information regarding the goods or services they are offering as sufficiently. This is to enable the consumers to be aware of their products before proceeding with their purchases. Furthermore, Oxley and Yeung (2001) found out that consumers whose behavior tends to be influenced by the availability of information on the internet when making online purchases are more likely to navigate away from website with insufficient relevant information. Whether businesses are selling goods or services, the key functionality and interoperability features, key technical or contractual requirements, limitations that might affect a customer’s ability to acquire, access or use the good or service, safety and health care information as well as age restrictions should be stated. 

Finally, businesses should feature a clear and an unambiguous confirmation process after the duration of payment is due, else the customers are contractually bounded. The confirmation process should come with a summary of their purchases which include the items, delivery and pricing information so that customers can take a final look at their order and make modification if necessary. Next, if customers do not provide expressed and informed consent, businesses should not carry on the transaction. Also, businesses should allow customers to keep a complete, accurate and durable record of the transaction that is compatible with their technology devices.