Perceptions of Electronic-Commerce

Abstract

Research studies have shown that consumer trust in the internet and risk perceptions of ecommerce security are critical success factors to the future growth of e-commerce. The purpose of this study was to determine how South African consumers’ awareness/knowledge of e-commerce security is related to their perceptions of e-commerce security, and how these perceptions are related to their trust in the internet. The theoretical model proposed by the study hypothesized that consumer perceptions of security play a mediating role between their knowledge of security technologies and their trust in the internet. The study used a quantitative research methodology; the model was tested using data collected via an online questionnaire and hypothesized relationships were tested using a statistical technique known as structural equation modelling. Results of the study confirm that consumers’ perceptions of security does play a mediating role between their knowledge of security technologies and their trust in the internet. Consumer knowledge of security technologies was found to have a positive but small impact on perceptions of security, and perceptions of security was found to have a large positive impact on trust in the internet.