CONSUMERS ACCEPTANCE OF ELECTRONIC COMMERCE: INTEGRATING TRUST & RISK WITH TECHNOLOGY ACCEPTANCE MODEL

Abstract

Purpose: The purpose of this study is to examine the factors that contributes towards consumers acceptance of electronic commerce by identifying variables that forms consumers intentions to transact online. This study is directed to recognize what are the factors that makes up the mind of consumers, thus promoting the transactions over the internet resulting in t e acceptance of e-commerce. Methodology/ Sample: The research done for this study uses a random sampling technique, in which the respondents are selected randomly and not based on certain classifications or categories. The tool used to collect the responses was a well-structured questionnaire, having Likert scale set as the option to obtain responses. The research type here is causal and descriptive. The nature of this research is quantitative, using a questionnaire as a primary source and other journal articles from various researchers as a secondary data source. Hypothesis were established after thoroughly studying the prior researches after which a well-structured questionnaire comprised of 22 questions was created, covering all the major five variables identified. The sample size is 303 respondents and the tests applied • Reliability test • Regression (analyze the data/responses collected) • Validity test Findings: The outcomes of the questionnaire show that all the independent variables namely, perceived of use, perceived usefulness, risk and trust have an impact on the dependent variable namely, consumers intention to transact. All the independent variables had a significant value of 0.000 which makes them useful for the study. The Cronbach’s Alpha value, 0.802 shows a reliability of the questionnaire floated. Practical Implications: The findings of this research will help predict the pattern of variables on which the retailers can focus in order to maximize the usage of electronic commerce. The retailers can work on building trust among the consumers, minimize the effect of risk involved and offer a better relation to help customers acceptance to transact online. On the contrary, this research gives a better understanding to the customers, clearing what are the visible factors of a retailer being authentic, leading them to differentiate among scams and finding the right online retailer to transact with.