The paper "Critical Thinking in Business" is a perfect example of a business assignment. The research paper is basically about trust in the electronic retail business. Since access to the internet is increasing by the day, it has since become normal for people to carry out business online. In this scenario, the buyer and the seller do not have any form of physical contact. This situation, therefore, raises a lot of questions as to whether the seller will deliver the goods or whether the buyer will pay for the goods. This type of business is thus dependant on trust.
The research was conducted among university students in the United States of America. This was mainly for the purpose of getting accurate answers since most of them are experienced in the e-retail business. Most of the students usually purchase goods online since they are readily accessible to the internet and it is also cheap. The study also sought to find out what goes on in the mind of a person before participating in the business. The study is quite important since it tries to analyze the future of e-retail based on the factor of trust by both the buyers and the sellers.
The factors that affect trust will also be useful to the participants in the business as it will identify the areas of weaknesses ad thus help in finding solutions. The study also brings out the concepts that are used in e-retailing in a bid to measure the success of the business. The study can also be used for the purpose of determining consumer trust in e-retail. The study was motivated by the fact that previous studies were not conclusive about the issue of trust.
Most of the previous studies mainly dealt with the issues that were technical. However, the study identified trust as a psychological issue and thus more focus was placed on it for the purpose of finding the results. During the study several hypotheses were used to test the results. The hypothesis was able to establish that personality issues did not have any major significance on trust. It was however evident that perception-based factors had a lot of impact on trust while carrying out online transactions.
This is mainly attributed to the spread of information about certain sellers with poor reputations. Experience is also a contributing factor to trust.
ReferencesWalczuch, R. et al, 2004,”Psychological antecedents of institution-based consumer trust in e-retailing”,Information and Management, 42, p. 159-177.