Credibility in an E-retailer : a South African perspective

Abstract

South Africa appears to lag behind the international community in transacting online (B2C) e-retailers with only certain industries performing very well online. The evidence of lack of online spending was experienced by the author when creating an online retail travel company www.travesphere.co.za. Initial research conducted indicated that the problem could perhaps lie in the credibility of the website and hence the poor enquiry level and turnover amounts. This forms the basis of the study. An electronic survey was conducted amongst internet users with a sample of 383 respondents who completed the survey in full. The survey was constructed utilising questions adapted from previous studies in international markets and from own questions adapted for a South African Market to test the credibility in an e-retailer from a South African perspective. Regression analysis was utilised to analyse the results. The major findings of the research project were that the South African consumers appear to be very naïve when transacting online and give a lot of credence to content placed on a website by webmasters. Consumers believe that the appearance of a website makes it appear trustworthy. Thus a massive potential fraud threat exists due to consumers’ lack of concern over personal details and protection of credit card details.