"Trust in E-Commerce and Its Impact on Digital Marketing Strategies" by Akshay Tailor

Graduation Term

Fall 2024

Degree Name

Master of Science (MS)

Department

College of Business: Master of Business Administration

Committee Chair

Ishida-Lambert Chiharu

Committee Member

Kaufman Peter

Committee Member

Hunter Gary

Abstract

Background: The rise of e-commerce has transformed consumer behavior, with trust playing a critical role in determining the success of online platforms. Prior research suggests that privacy and security concerns, as well as transparency and social proof, significantly affect consumer trust in e-commerce. This study aimed to investigate how strong security measures, privacy safeguards, and social media marketing initiatives influence consumer trust and purchasing decisions in e-commerce environments.

Methods: A survey was conducted with 232 students from Illinois State University, focusing on key factors such as privacy protection, security, transparency, and social proof. The survey used a Likert scale to measure how likely respondents were to trust e-commerce platforms based on these factors.

Results: The findings revealed that privacy and security measures, such as encryption and clear communication of data protection practices, significantly increased consumer trust. Transparency and ethical business practices were also critical, with participants more likely to trust platforms that focused on long-term relationships and transparency in their marketing strategies. Social proof, including customer reviews and testimonials, was shown to positively impact trust, though trust in platforms selling directly through social media was comparatively lower.

Conclusions: The development and maintenance of consumer trust in e-commerce are heavily influenced by privacy and security measures integrated into digital marketing strategies. While social media marketing plays a role in shaping consumer decisions, trust is more deeply rooted in transparency, privacy, and security. These findings offer insights for businesses looking to enhance consumer trust and satisfaction in online shopping environments.

Access Type

Thesis-Open Access

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