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Consumers ’ Adoption of B2C E-commerce in Macao

Consumers ’ Adoption of B2C E-commerce in Macao. ICEB2005 Conference. Patrick Lee, Desmond Yuen, and Ken Lee Faculty of Business Administration University of Macau. Agenda. Research Objective Literature Review and Hypotheses Development Research Method Analyses and Results

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Consumers ’ Adoption of B2C E-commerce in Macao

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  1. Consumers’ Adoption of B2C E-commerce in Macao ICEB2005 Conference Patrick Lee, Desmond Yuen, and Ken Lee Faculty of Business Administration University of Macau

  2. Agenda • Research Objective • Literature Review and Hypotheses Development • Research Method • Analyses and Results • Discussion and Conclusion

  3. Research objective • Develop a model that underlies people’s adoption of E-commerce • Dependent variable • People’s intention to adopt E-commerce • Two independent variables • Perception of trust in electronic transaction • Willingness to use credit card in electronic transaction • Interaction effect • between the two independent variables

  4. Hypothesis development

  5. Trust and E-commerce Willingness to use credit card and E-commerce H(3) Interaction effect

  6. Research Method • Quantitative approach • Sample sizes: 250 • Chinese and English versions together • Qualitative approach • Semi-structured interviews • Interviewees are chosen based on the researcher’s contacts

  7. Analyses and Results • Descriptive statistics for survey data • Response rate was 71.2%

  8. Testing of Hypotheses ** p<0.01

  9. Low and high willingness of using credit card in electronic transaction

  10. Low and high perception of trust in electronic transaction

  11. Results of qualitative analysis • Not many interviewees trust E-commerce • Trust is “very important” in E-commerce • One worried money to be stolen in online trade • Lack of face to face interaction • Credit cards are very popular • Mainly offline use • Not many used cards online • One used “10 to 20 times a month” used her card for only two times online

  12. Results of qualitative analysis • E-commerce is very new in Macau • There is no need to use E-commerce in Macau • E-commerce is advantageous because of its convenience • Western countries are large and people cannot buy things easily so they are more willing to use E-commerce • Macau is a small place and people can buy things easily

  13. Results of qualitative analysis • Interviewees feel that it is easy to disguise over the Internet • Interviewees feel that it is easy to use others’ credit card on the Internet • Credit card information is very easily known by others • Credit card receipt • Credit card number • Name • Expiry date • Difficult to detect identity theft

  14. Summary of research results • Low trust in E-commerce in Macau • Low willingness to use credit card for E-commerce transactions • Perception of trust and willingness to use credit card are positively related to intention to adopt E-commerce • There exists an interaction effect between trust and willingness to use credit card to influence intention to adopt E-commerce

  15. Managerial implications • Provide a trustworthy environment • Increase E-commerce security by having updated computer equipment • Building good reputation and good image • Improve the security transmission of credit card information over the Internet • Launching digital signatures • Electronic certificates can increase trust

  16. Limitations • Interpreted in the context of the research setting • Applicable only to E-commerce in Macau • Translation bias in interviews • Sampling bias • Internet development will affect the results • Download speed improvement • Reduce in system downtime

  17. Direction for future research Other factors may influence B2C E-commerce: • Advertisement • Government regulations • Pricing strategies • After sales services • New payment methods • Mobile commerce Thank You

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