Chapter 2
LITERATURE REVIEW
2.1 Previous Research
The first research was conducted by Sumarto, P. H., Purwanto, E., & Khrisna, D. (2012). The purpose of this research was to figure out the factors that affect e-commerce customer loyalty in Surabaya. The researcher are using three Stages of analysis: 1) Firstly, they analyzed two variables: effect of the vendor’s ability to communicate and vendor’s integrity on the level of on e-commerce customers trust in Surabaya,
2) Secondly, they analyzed the vendor’s ability to communicate and vendor’s integrity variables on the level of e-commerce customer loyalty in Surabaya
3) Thirdly, they analyzed the influence of the trust variable on the level of e-commerce customer loyalty in Surabaya. This…show more content… M., & Hassanein, K. (2002), Human nature tend to trust more of what they can see and feel everyday, more like a routine that is programmed in people’s head. For an easy example, people can trust that their group of friends will not betray them or backstab them behind their backs, because they contact each other everyday. People also believe that the seller in the food stand where they bought their breakfast every morning will not poison them for some unknown reason. A family of three trust fully in architect that designed their house, that the building will not collapse when they are asleep, and the list goes on. This concept also applied in online business. In order to make people feel comfortable in using e-commerce for a more convenience shopping experience, we, as the netizen, must try to routinely place our trust in these environments. The Internet, and e-Commerce in particular, is still not a familiar backyard where we blindly fall back on without worries. When e-Commerce is compared with traditional visible market, e-Commerce is considered less personal, more automated, less direct human interaction, has less immediate purchasing pleasure, causes more legal uncertainties in some people, and exposed to opportunities for fraudulence and abuse (Görsch 2001; Head et al. 2001; Roy et al. 2001; Yoon 2002). It is proven that trust is more difficult to build when money is included in an online environment (Hoffman et al. 1999)…show more content… The knowledge can be gained through previous experiences (Doney and Cannon 1997) or by getting information from a third party (Strub and Priest 1976). Time and experience are needed to, for deepening trust between two parties, and the Internet is still relatively new to the society (Cheskin/Sapient 1999), online transactions require very explicit guarantees up front (Nielsen 1999). The degree to which a consumer’s opinions and purchasing behavior is influenced by a referee is directly dependent on the consumer-perceived reliability and trust