The Impact of e-commerce on Organizations

CHAPTER 1: INTRODUCTION

The internet usage for e-commerce has become a famous topic for many researches and different press reports of mass media. The activities of shopping have been affected in a dramatic way similar to the internet, which has changed the communication and information sharing pattern of the people (Wen 2003, pp.703-10). A number of researchers have mentioned that online shopping can be considered as the best replacement for traditional sellers who have been selling their products through their physical stores. The medium of internet in the last two decades has been used as a medium of shopping, presumptions, attitudes and perceptions that are concerned with feasibility online store fronts and operations of mixed-channel offering combination of both online and offline capabilities. Integral to varying situation of retailing by help of internet is an increasing understanding of consumer concerns and motivations particularly in online shoppers (Melville et.al 2004, pp.283-322).

There are many studies reporting that consumers are concerned with the way in which they can establish reliability and trust with online stores that they cannot build with physical stores. The owners of online stores are concerned with the way in which they can design website of their store to appeal customers and the way in which they can convince and customers to buy their products online. It has been argued by researcher that development of trust is a crucial and imperative factor for online shopping stores to attract and retain their customers because trust is the most basic factor for influencing purchasing decisions of online customers (Malecki & Moriset 2008, pp. 165-177).

There are few online customers who are only able to interact with any online store through its websites and if customers determine an online store as unreliable and undependable, then economic impact of this factor on the overall business will be considerable. This is the reason that effective strategies should be made by the organizations in order build and maintain trust in consumers towards online shopping therefore, the purpose of this research is to determine strategies in which trust is build and maintain by the organizations for the customers towards online shopping and how competitive advantage is obtained by the organizations by using e-commerce services (Leinbach & Brunn 2001, pp. 69-78).

Project Aim

The purpose of this research paper is to determine and evaluate strategies that build and maintain trust in consumers towards online shopping so that they are attracted to purchase products and perform repeat purchase.

Research Objectives

Following are objectives of this research:

To determine in which way organizations obtain competitive advantage by using services of e-commerce.

To determine in which way organizations attract customers to buy their product again through online medium.

To determine the strategies that organizations made to build and maintain trust in consumers towards internet shopping.

Research Questions

Q1. How does an organisation obtain competitive advantage using service in e-commerce?

Q2. How does an organization attract customers to buy their product again through online medium?

Q3. What are the strategies to build and maintain trust in consumers ...