FACTORS AFFECTING CUSTOMER’S TRUST IN E-COMMERCE IN VIETNAM

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business




Tran Huy Anh Duc


FACTORS AFFECTING CUSTOMER’S
TRUST IN E-COMMERCE IN VIETNAM




MASTER OF BUSINESS (Honours)









Ho Chi Minh City – Year 2012
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

Tran Huy Anh Duc


FACTORS AFFECTING CUSTOMER’S
TRUST IN E-COMMERCE IN VIETNAM

ID: 60340102


MASTER OF BUSINESS (Honours)
SUPERVISOR: Tran Ha Minh Quan







Ho Chi Minh City – Year 2012
i

ABSTRACT

No one can deny that internet and websites are the most important tools of
electronic commerce (e-commerce), to help e-commerce develop effectively. The
internet has been widely used from 1994 and e-commerce had been contributing to
the growth in many countries. Although there are opportunities for e- commerce
growth, it did not achieve its full potential. What did reasons prevent the
development of electronic commerce? Having many reason, but an important reason

is customer’s trust. The necessary to do is that identify what factors affecting
customer trust in the online environment. Based on the research of Cuiping Chen
(2007) and F Meziane & Kasiran (2008), this study combine the research model of
two studies to form the research model. The main survey was launched on October
2012. For main survey was collected in a month, 272 responses were received in
both methods, email and hard copies, in which 32 were rejected because of
incomplete responses. After all, 240 samples were usable. After pilot study, the
research model had 4 factors affecting customer’s trust, as: Affiliation, Existence,
Policy, and Website Design. The results show support for Hypothesis 2, 3, and 4,
mean that Affiliation of website, Policy of website, and Website design attitude of
company, all emerged as significant predictors of Customer’s Trust.

Key word: e-commerce, trust, B2C, customer, factors affecting
ii

ACKNOWLEDGMENTS

It is my pleasure to express my sincere gratitude to my supervisor Dr. Tran Ha
Minh Quan for his support throughout the research process. He had devoted his
valuable time and efforts in patiently guiding me to complete this study. I would
like to convey my special thanks to him for his assistance and encouragement.
I would like to thank the faculty of International School of Business (ISB) –
University of Economic Ho Chi Minh City. And my special thanks to Professor
Nguyen Dinh Tho PhD., who has instructed me how to do a research clearly and
simply.
Besides, I would like to express my thanks to the ones who have helped me to
distribute the questionnaires. Also, I would like to thanks all respondents, who spent
their valuable time in filling out the questionnaire.
I thank my friends and colleagues who provided much needed inspiration and
support during this time.

Finally, no words of thanks are ever enough for the dedication of my parents and
younger brother who pushed me through each step of my academic journey and
wanted to see me get the Master’s degree.

December 20, 2012



Tran Huy Anh Duc
iii

TABLE OF CONTENTS

ABSTRACT………………………………………………………………… …………i
ACKNOWLEDGMENTS………………………………………………… ………… ii
TABLE OF CONTENTS………………………………………………….………… iii
LIST OF TABLES………………………………………….…………….…………….v
LIST OF FIGURES……………………………………………………………………vi

CHAPTER I: INTRODUCTION……………………………… ……….………… 1
1.1. BACKGROUND…………………………………………… …….…… … 1
1.2. RESEARCH PROBLEMS ………………………………… ….… ……… 2
1.3. RESEARCH OBJECTIVES…………………………………… … ………….3
1.4. RESEARCH SCOPE…………………………………………… …………… 4
1.5. OUTLINE OF STUDY………………………………………….…… ……… 4

CHAPTER II: LITERATURE REVIEW………………………… ……………… 5
2.1.MODEL OF CUIPING CHEN (2007)………………… …………………… 5
2.2.MODEL OF F MEZIANE (2008)……………………………………… …… 6
2.3.BUILDING THE RESEARCH MODEL………………………………… 6

2.4.RESEARCH MODEL…………………………………………………… …….7
2.5.DEFINITION OF TRUST………………………………………………… … 8
2.6.ELECTRONIC COMMERCE (E-COMMERCE)……………………… …… 9
2.7.CONSUMER TRUST IN E-COMMERCE.………………………….……… 10
2.8.HYPOTHESES……………………………………………………….……… 12
CHAPTER SUMMARY…………………………………………………………… 16

CHAPTER III: RESEARCH METHOD…………………………………………… 18
3.1.RESEARCH APPROACH…………………………………………………… 18
3.2.RESEARCH PROCESS……………………………………………………… 18
3.3.MEASUREMENT SCALES………………………………………………… 20
3.4.SAMPLING & DATA COLLECTION……………………………………… 25
iv

3.5.MAIN SURVEY……………………………………………………………… 25

CHAPTER IV: DATA ANALYSIS & RESULT…………………………………….26
4.1.DESCRIPTIVE STATISTICS SURVEY RESULTS………………………….26
4.2.THE RATING SCALE…………………………………………………………28
4.2.1. CRONBACH’S ALPHA COEFFICIENT……………………… … 28
4.2.2. EXPLORETORY FACTOR ANALYSIS………………………………32
4.2.3. REGRESSION ANALYSIS…………………………………………….36

CHAPTER V: DISCUSSION, IMPLICATIONS, RECOMMENDATIONS……… 39
5.1.CONCLUSION……………………………………………………… …… 39
5.2.MANAGERIAL IMPLICATIONS………………………………… ……… 39
5.3.IMPLICATIONS FOR FURTHER RESEARCH……………… 41

REFERENCE …………………………………….………………………………… 42
APPENDIX: QUESTIONNAIRE………………………….……………………… 47

APPENDIX: RESULT OF DATA ANALYSIS………………………………………53
v

LIST OF TABLES

Table 3.1: Measurement scales of research 20-22
Table 4.1: Descriptive Statistics 26-27
Table 4.2: Cronbach’s alpha of EXIS 28-29
Table 4.3: Cronbach’s alpha of AFFI 29
Table 4.4: Cronbach’s alpha of POLI 30
Table 4.5: Cronbach’s alpha of WEDE 31
Table 4.6: Cronbach’s alpha of TRUS 32
Table 4.7: KOM and Pattern Matrix result of final 33-34
Table 4.8: Total Variance Explained 35
Table 4.9: Summarized EFA analysis 35
Table 4.10: Correlations 36
Table 4.11: Coefficients 37
Table 4.12: Model Summary 38

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LIST OF FIGURES

Figure 2.1: Research model of Cuiping Chen 5
Figure 2.2: Research model of F. Meziane 6
Figure 2.3: Research model of Customer Trust in e-commerce 7
Figure 3.1: Research model after revised 24
Figure 4.1: The correlations of the research model 38
1

CHAPTER 1. INTRODUCTION

In the first chapter, the overview of e-commerce and its importance for the growth
of economy will be introduced. Moreover, the causes that restrict the development
of e-commerce will be found out in order to find effective solutions to overcome
such limitations. It can be seen that these issues are also the research problems and
research objectives for this study.

1.1. Background
The development of information technology and internet has formed a new form of
transaction in the business environment. It is called as online transactions. No one
can deny that internet and websites are the most important tools of electronic
commerce (e-commerce), to help e-commerce develop effectively. The internet has
been widely used from 1994 and e-commerce had been contributing to the growth
in many countries. Amongst emerging economies, China's e-commerce presence
continues to expand. For example, with 384 million internet users, China's online
shopping sales rose to $36.6 billion in 2009 (Olsen, Robert, 2010). In US e-
commerce and Online Retail sales projected to reach $226 billion, an increasing of
12 percent over 2011 ( Mulpuru, 2012). Clearly, the e-commerce has an important
role in the development of economy in many countries.
Although occurrence of internet in Vietnam later than other developed countries
(from 2003), it also had a positive contribution to the national economy. More
specifically, revenue from e-commerce in Vietnam reached nearly 2 billion USD,
equivalent to 2.5% of GDP, and it is forecasted that the revenue will be 6 billion
USD in 2015 (A sleeping e-commerce giant, 2012). These numbers, though still
relatively modest compared with many countries, it shows the potential of e-
commerce development in Vietnam. Especially, when the percentage of the
population using the internet in Vietnam reached 35.49% in September 2012 (report
2

on internet statistics of Vietnam, 2012), the growth potential of e-commerce is
based.

1.2. Research problems
Although there are opportunities for electronic commerce growth, it did not achieve
its full potential. What reasons prevent the development of electronic commerce?
To find out the answer, a direct interview was conducted including four people aged
from 21 to 27, in which 3 females and 1 male. In four of the interviewees, one
person used internet banking services, one person often purchases online and two
other know the service/ purchase online but do not use. Obviously, results of the
interviews shows that one of the most important reasons influences the customer's
decision to use or not to use the online service and online purchasing is the trust.
In many studies about customer’s behavior in e-commerce, they also showed that
customer’s trust is as a key factor, which impacts customer’s behavior in e-
commerce. Liu, T. Marchewka, Ku (2004) compared American and Taiwanese
perceptions concerning online privacy and how it relates to the level of trust with a
company's electronic commerce website. Their study suggested that trust is an
important intermediary variable that influences behavioral intentions for online
transactions. Ling (2010) also mentioned in his study that impulse purchase
intention, quality orientation, brand orientation, online trust and prior online
purchase experience were positively related to the customer online purchase
intention.
Through the review of previous studies and the actual interview, we can conclude
that trust is an important factor affecting customers in online activities. So to help
online activities develop more, we need to increase the trust of customers. However,
to increase the trust of customers, what is necessary to do?
The necessary to do is to identify the factors affecting customer trust in the online
environment. This issue has been explored in numerous studies in many countries,
many different areas. Flick (2009) has found that perceived site quality was
3

confirmed to be positively related to trust in the website. It was confirmed as
important factor. In other research of C. Chen (2007), it mentioned that the trust of
online customers for the seller derives not only from their website experience but
also from their experience outside the website. Specifically, the components:
website design, fulfillment/ reliability, privacy/ security, and customer service are
the basis of forming the trust of customers. The study also indicates that trust is
intrinsically beneficial and if a consumer trusts an e-retailer, he/she will come back
in the future or even become loyal to the e-retailer. Earlier, in the study on the
subject of “Consumers' attitudes towards online shopping in New Zealand”, Shergill
and Z. Chen (2005) also mentioned these factors: website design, website
reliability/fulfilment, website’s customer service and website security/privacy are
the four dominant factors which influence consumer perceptions of online
purchasing in New Zealand.
Generally, some of many studies about factors that affect customer’s trust in online
environment were defined. However, in Vietnam, what do factors affect customer’s
trust, those are also similarly or not. With this study, I would like to clarify that
issues.

1.3. Research objectives
In the previous section, research problem has been identified. There are
opportunities for electronic commerce growth, but it did not achieve its full
potential. So, what reasons do prevent the development of electronic commerce?
The research questions of this study are as follows:
- What factors that affect customers' trust in e-commerce in Vietnam?
- How is the relationship between these factors and customer’s trust in e-
commerce? Which will influence customer’s trust the most?
Therefore, the objectives of this research are as follows:
- To identify the factors that affect customers' trust in e-commerce in Vietnam.
- To determine the influence of each factor on the customer's trust.

4


1.4. Research scope:
Due to the limitations of research funds and time, the scope of this research is
therefore limited to all Vietnamese customers in the Southern Area of Vietnam,
specific in Ho Chi Minh City and Binh Duong province. Respondents of this
research include all of customer whom their own procurement decisions.

1.5. Outline of study:
This research will be composed of 5 Chapters:
 Chapter 1: Introduction to give research background, research problem,
research question as well as research objective.
 Chapter 2: Literature review. This chapter reviews theories and previous
studies, then formulates the research hypothesis and model.
 Chapter 3: Research methodology. This chapter provides general idea how the
research will be designed and implemented.
 Chapter 4: Data analysis and result. This chapter translates data collected from
survey, analyses data and discusses the result finding in connection with
theory.
 Chapter 5: Conclusion, implication, limitation. This Chapter concludes the
research finding; provide further suggestion as well as research limitation.

5

CHAPER 2. LITERATURE REVIEW

This chapter will review e-commerce literature involving the emergence of
ecommerce, customer trust. Based on the review of literature, customer trust in e-
commerce context is identified. From that the research model was built for this

study.

2.1. Model of Cuiping Chen (2007)
Consumer trust in an e-retailer derives not only from a consumer’s website
experience but also from his/her experience outside the website (C. Chen, 2007).
Specifically, a consumer’s attitudes toward the key components of his/her entire
online purchase experiences constitute the key drivers of consumer trust. The key
components that Cuiping Chen has listed in research are: website design,
fulfillment/reliability, privacy/security, and customer service. Findings also indicate
that trust is intrinsically beneficial. If a consumer trusts an e-retailer, he/she will
come back in the future or even become loyal to the e-retailer. Further, findings
suggest that though trust has a direct effect on future intentions and loyalty, part of
its effect is conditional on its ability to reduce transaction costs.
In his research, the customer trust was studied as an intermediate variable, it was
influenced by the customer’s attitude components, and it also affected customer
loyal. A part of the factors was suggested by C. Chen (2007) would be used in this
research.


Website Design Attitudes
Fulfillment/ Reliability
Satisfaction
Security/ Privacy Attitudes
Customer Service
Satisfaction
Trust in an
E-Retailer
Figure 2.1: Research model of C. Chen
6

2.2. Model of F Meziane and Kasiran (2008)
In other study, Maziane (2008) suggest “the trust information model” with 4
components: existence component, affiliation component, policy component,
fulfillment component. An information extraction system is developed to help users
find information. But before that the study found which variables is factor that
affects the trust of customers. The use of variables defined on a sample of the e-
commerce website. In study, Meziane and Kasiran present the development of
information extraction systems and its evaluation.
This research would base on model of Meziane and Kasiran (2008) to develop a
research model about factors affecting customers’ trust in e-commerce in Vietnam.











2.3. Building the research model:
The research model in this study based on C. Chen (2007) and F. Maziane (2008),
combining factors of two studies to form a model of the factors affecting customer
trust in e-commerce.
Research model has dependent variable that is “Customer Trust”, and five
independent variables. The first-four independent variables are based on the model
of F. Maziane (2008), which are variables: “Existence”, “Affiliation”, “Policy”, and
Merchant Trust

Policy
Fulfillment
Existence
Affiliation
Figure 2.2: Research model of F. Meziane

7

“Fulfillment”. The fifth variable in the model is the “Website Design”, this variable
is added to the model of this study based on the model of C. Chen (2007). C. Chen
develops an integrative model of consumer trust in an e-retailer. The model includes
the antecedents of consumer trust in an e-retailer, the central variable in the model,
the outcomes of trust, and the mediator and moderators of the influence of trust on
its outcomes. In the model, “Customer Trust” is the central variable, when
considered in relation with the antecedents, "Customer Trust" be influenced by
these factors. So in the model of this study will be based on that relationship to
determine the factors affecting customer trust. “Fulfillment” variable mentioned in
the model of F. Maziane (2008), “Security” and “Customer service” has been
included in the “Policy” variables in the model of F. Maziane (2008).

2.4. Research model
In this research, dependent variable was Customer Trust. Factors affecting customer
trust are independent variables. There are five independent variables in this
research, those are: Existence, Affiliation, Policy, Fulfillment, and Website Design.

H1
H2
H3
H4
H5
EXISTENCE
AFFILIATION
POLICY
FULFILLMENT

CUSTOMER TRUST
In e-commerce
WEBSITE DESIGN
Figure 2.3: Research model of Customer Trust in e-commerce
8

In this research the term ‘Trust’ is always used, so its meaning should be completely
and properly understood. Before the explanation of each hypothesis, let’s define
what Trust is first.

2.5. Definition Of Trust
The studies about the concept of “Trust” have derived from economics, sociology,
and psychology. The trust also has been studied deeply in the different areas

(Williamson 1993; Rotter 1967; Zuker 1986), and in each area have different
assumptions about “Trust”, so there are many different ways to talk about “Trust”.
As the analysis by Laeequddin, B.S. Sahay, V. Sahay, and Waheed, (2010), Trust
relationship involves at least two parties: the trustor and trustee. With two parties,
there are two streams of concepts of trust:
 The first stream: Trust is embedded within the trustor (feelings, emotions and
cognition) not in the trustee. For example, in a study by Rotter (1967), he
defined: Trust as a belief or feeling is derived from the character and the
formation and development during childhood.
 The second stream: Trust is embedded within trustee. For example, Rousseau
et al (1998) explains that intellectuals in the economy, the trust authority,
ability, and expertise is becoming increasingly important, demonstrating its
ability to act as expected.

In this study, the concept of "Trust" is seen from the perspective of those engaged in
economic activities, the “Trust” is considered in a commercial environment.
Therefore, this research prefer the second stream, a widely definition of trust by
Rousseau et al. (1998) said that: “Trust is a psychological state comprising the
intention to accept vulnerability based on positive expectations of the intentions or
behavior of another” (p. 395)


9

2.6. Electronic commerce (E-commerce):
Electronic commerce or e-commerce refers to a wide range of online business
activities for products and services. It also pertains to “Any form of business
transaction in which the parties interact electronically rather than by physical
exchanges or direct physical contact.” B. Andam (2003).
E-commerce is the combination of buying and selling activities through the Internet,

or any of the transactions with purpose of transferring ownership or rights to use
goods or services through computer mediated. There are many different definitions
of e-commerce, but there is no one definition is comprehensive, although this
concept has been commonly used for a long time. A definition is said to be more
comprehensive and reflect recent trends happening in the business environment has
defined e-commerce as follows: “E-commerce is the use of electronic
communications and digital information processing technology in business
transactions to create, transform, and redefine relationships for value creation
between or among organizations, and between organizations and individuals”. B.
Andam (2003, p. 6)
The major different types of e-commerce are: Business-to-Business (B2B);
Business-to- Consumer (B2C); Business-to-Government (B2G); Consumer-to-
Consumer (C2C); and Mobile commerce (m-commerce).
 Business-to-Business (B2B) e-commerce is a kind of e-commerce between
businesses together. This is kind of up to 80% of the current e-commerce
activities, and experts predict that the form of B2B e-commerce will continue
to grow even faster.
 Business-to-consumer (B2C) e-commerce is a form of commercial
transactions between companies and consumers, including customers looking
for product information, purchase and sale of physical products ( tangible
products, such as laptops, mobile phones) or product information ( that is
electronic material goods or digital content such as e-books, software, game),
and delivery operations. This is the form the 2nd largest e-commerce, but is
10

the earliest form of e-commerce, the original source of it is derived from the
online retailing (e-tailing). B2C models have become popular through major
online retailers such as amazon.com, ebay.com.
 Business-to-government (B2G) e-commerce is a form of electronic
commerce between companies and the public sector. Public procurement,

legal procedures, licensing or other activities related to the government that
they are through internet.
 Consumer-to-Consumer (C2C) e-commerce is a form of trade through the
Internet between individuals or customers. This is a form of birth thanks to the
growth of electronic marketplaces and online auction. This mode is suitable
for project bidding and procurement industry, where a buyer can pay for what
they want from many different vendors. There is also a form of development
potential.
 M-commerce (mobile commerce) is the buying and selling of goods and
services through wireless technology, handheld devices such as mobile
phones, PDA. Japan is considered the leader in the field of M-commerce in the
world.

2.7. Consumer Trust In E-Commerce
As mentioned above, many studies have identified trust as a multi-dimensional
structure, and the complexity of the concept was to create different ideas about how
to develop trust in commercial relationships, and the literature now must cope with
the issue of how trust is altered by the e-commerce context (Braynov & Sandholm,
2002; Egger, 2003; Gefen & Straub, 2004; Komiak & Benbasat, 2006; McKnight &
Choudhury, et al., 2001; Meng, 2004; Papadopoulou & Kanellis, et al., 2001;
Peszynski & Thanasankit, 2002; Rappa, 2002; Rutter, 2001; Shepherd & Dhonde, et
al., 2001; Stahl, 2005; Yuan & Sung, 2004). In the e-commerce, there is a definite
need for customer’s trust (Urban, Sultan, and Qualls 2000). There are two reasons:
11

 First, for the customer, there are high risks involved in transactions with e-
commerce.
 Second, an online consumer is dependent on the online-seller to secure the
goods or services he/she needs in the way he/she wants.
The high risks involved in transactions with e-commerce for a customer come from

two sources.
 First, there is the uncertainty involved in the online transaction environment.
 Secondly, there is the uncertainty regarding whether the online-seller intends
to and will be able to perform appropriately.
The online transaction environment is highly uncertain because it carries the
following characteristics:
 It uses an open technological infrastructure for transactions
 The technological structures it relies on are unstable because the Internet and
Internet-related technologies are still new
 The protective institutional (legal, governmental, contractual, and regulatory)
structures supporting it are still slowly arriving
 It is impersonal in nature, as opposed to the face-to-face transactions that
consumers are familiar with
Establishing relationships is a necessary condition for the formation of the trust,
face-to-face contact between buyer and seller “cannot easily be replaced”
(Papadopoulou et al., 2001, p. 195). The first attempt to compensate for the lack of
interpersonal contact in e-commerce is that developing a one-way communication
methods. Meaning only receive information from the website that cannot be
returned to their own information, which makes the trust of customers is difficult to
develop. Recent efforts into to create "two-way, one-to-one personalized interactive
dialogues" on websites is more in tune with trust theory, and holds out promise in
creating trust (Papadopoulou et al., 2001, p. 195). Some studies suggest that the best
way to overcome the disadvantages of e-commerce in the direct interaction between
buyers and sellers is to convert websites into “customer-centric servicescapes
12

offering a digital experience that can contribute towards the development of an
indelible relationship between the business and the customer” (Papadopoulou et al.,
p. 195). If customers get good service for a time, they will form your own
confidence in e-commerce.

Follow the definition of trust developed by Rousseau, Sitkin, Burt, and Camerer
(1998) to the customer and online-seller relationship, in the current study, defining:
Customer trust in e-commerce as a consumer’s psychological state comprising the
consumer’s intention to accept vulnerability based upon their positive expectations
c of the intentions or behavior of online-seller. As an underlying psychological
state, customer trust in e-commerce can affect customer’s risk-taking behavior in
their relationship with online-seller.

2.8. Hypotheses
2.8.1. The existence component
In e-commerce, risk to customers is higher, because of the communication gap
between the seller and the buyer (the transaction to go through intermediate
computers and internet so the buyer does not opportunity to see how the seller is),
the fake phenomenon due to the lack of physical interaction can occur in online
transactions. In the real world, when customers purchase can reduce those risks
through the interaction between customers and sellers through face-to-face contact.
The physical presence of the business to ensure customers know of its existence,
and when necessary, customers can go there, this will make customer trust for the
seller (Cazier et al, 2006). In another aspect, to communicate more reliable,
company need to provide more information about themselves and how the
information is easily found by customers (Nielsen et al, 2000). This was later
confirmed by a study carried out by Araujo and Araujo (2003), a study arguing
about building customer trust in e-commerce. In e-commerce, sellers need to have
communication with the client, which means that they have officially exist behind
their website.
13

Providing information to prove the existence of companies such as addresses and
phone numbers can convey the message that the company maybe outside the actual
transactions, which can help consumers control and use communications when

necessary. In addition, providing information on registration with the government
will increase the trust. Information such as company registration and the registry
will help consumers easily verify the validity of the company.
H1: Existence of company behind website has a positive impact on customer trust
in e-commerce.

2.8.2. The affiliation component
A website was recognized trust-mark seal will raise awareness of consumers on a trusted
website (Cheskin, 1999; Gritzalis and Gritzalis, 2001). A seal of trust-mark has been
developed to provide a guarantee of the actual sale of their business, sales policies
provided on the website interface. For example, a website registered to become an e-
commerce website, they must meet the requirements, standard cells that are issued by the
government, and websites that meet these criteria, and they will be recognized seal of
trust-mark. A seal of trust-mark or a certification as "trusted websites" will be essential
and important for the website, especially the new one in the area of electronic commerce.
The new website usually use a third-party certification to be able to provide assurance
about their behavior or quality of products or services they provide (Araujo and Araujo,
2003).
Customers can have durable relationships with suppliers through their own experience.
However, for new consumers, trust can be used to establish the initial trust relationship.
Several methods can be used by electronic commerce links and the most popular third-
party certification, registration and associated member portal. There is more risk than
other well-known companies such as amazon.com and ebay.com. Registration with the
agency or organization can be used to create the trust. Merchants Trust can also be caused
by links or digital recruitment portal.
H2: Affiliation of website has a positive impact on customer trust in e- commerce.
14


2.8.3. The policy component

Online privacy policy is understood as the seller's statement about the privacy of
customers and the customers are protected when engaged in e-commerce websites.
Interviewing directly with clients has shown that privacy is a major concern for
those who use the internet (Cavoukian and Crompton, 2000). There are many
privacy-related complaints, which are related to customer complaints to receive
unwanted e-mail (junk mail, spam), or their complaints about being harassed by the
calls, and their complaints about the sale of private information to a third party or
dangerous than they stolen information and posing in undesirable transactions
(Mithal, 2000). Important requirement for e-commerce security is the need to
protect customer information during the transaction, confirm the transaction is not a
faker, or ensure that no one can interrupt the process of dealing to steal transaction
information, generally prevent the time of the transaction (Patton and Josang, 2004).
In electronic commerce, policies such as privacy, customer satisfaction and
guarantee can help consumers evaluate the trustworthiness of a company. These
policies can influence the level of risk involved in the transaction. Company policy
such as money back guarantee can lower consumers’ risk by giving more control to
the user towards the output of the transaction since they can return the product
without total loss if they are not satisfied.
H3: Policy of website has a positive impact on customer trust in e- commerce.

2.8.4. The fulfillment component
The sellers on the website need to understand that their transactions with customers
can be successful only if they can ensure the goods are delivered to the customer
and payment security for customers. About 9 in 10 people using online shopping
method like the seller to explain the problems as soon as order items can be
delivered to customers, sales order confirmation with customers or a clear statement
about the warranty policy, change, return the product if the product is incorrect as
15

the original information (Patton and Josang, 2004). In the bill should provide clear

information on how the transaction, the company's name, payment method. Make
sure the seller's reputation on customer care as delivery issues, billing issues and it
creates a reliable environment for e-commerce transactions (Järvenpää et al, 2000).
Reputation conveys information about the performance of companies as well as
behavior in past. A positive reputation can create the basic building blocks of the
trust business and make some guarantee that the merchant will perform and behave
in a similar way in the future.
H4: Fulfillment of seller has positive impact on customer trust in e- commerce.

2.8.5. Website design attitude component
Feng, Lazar, and Preece (2004) argues that the website has the trust of consumers if
they show the actual contact of the company’s office, or interactive environment of
the organization to strengthen personal beliefs, and allow the exchange between
customers and the company. In the study of Feng et al, 2004, the conclusion of the
study is to develop evidence to help customers determine what other customers like
them or who have experience may be useful for promoting sympathetic attitude and
build the trust of individuals for "online seller". As a result of these findings,
website design has become one of the central areas of interest in making e-
commerce more reliable. Studies have shown that website design elements affect
how consumers evaluate the site, and whether or not they will believe it.
Other studies continue to debate about the role of website design in building trust.
Lanford (2004) found that "consumers place less importance on website design and
usability and more on other aspects of online shopping, such as product details,
Contact information and prices". Repeated testimony of the user that they can
develop trust in a website despite the fact that they do not like the look or layout of
the site. As a consumer noted, "if it is something I need or want, it does not matter if
the website looks good". Some consumers even expressed confidence in the poor
design of a shop rare items, more well-designed graphics of the official website
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(Lanford, 2004). Moreover, "if an online store to make consumers happy for the
first time, consumers have the ability to come back". In other cases, usability
becomes an important basis for building trust over looked.
Through the quick interview, the real of the Vietnam market, this research proposed
one more component: website design attitude, this is the fifth component. Website
design attitudes assess a consumer’s satisfaction with all elements of his/her
experience at an e-commerce’s website, including: navigation, information search,
level of personalization, and merchandise selection.
H5: Website design attitude of company has positive impact on customer trust in e-
commerce.

Chapter Summary
In summary, this chapter presents the research model of this article, based on 2
models Meneze research (2008) and Chen (2007).Research model "Factors
affecting customer trust in e-commerce in Vietnam" identified five main factors:
Existence, Affiliation Policy, Fulfillment and Website design, they will affect the
trust of customers.
The next section of the chapter presents the key concepts to grasp in the study,
which is the concept of trust. There have been many concepts of trust been studied
before, but the content in the field of economic research, this study will use concept
of Rosserce, that is: Trust is a psychological state comprising the intention to accept
vulnerability based on positive expectations of the intentions or behavior of another.
The next concept to be mentioned is the concept of electronic commerce, in the
writing of B. Andam (2003), the concept of e-commerce are: “Any form of business
transaction in which the parties interact electronically rather than by physical
exchanges or direct physical contact.” Final section of the chapter refers to the
concept of the factors mentioned in the model, and the hypothesis of this study. In
the research has 5 research hypothesis, those are:
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 H1: Existence of company behind website has a positive impact on customer
trust in e-commerce.
 H2: Affiliation of website has a positive impact on customer trust in
electronic commerce.
 H3: Policy of website has a positive impact on customer trust in electronic
commerce.
 H4: Fulfillment of seller has positive impact on customer trust in electronic
commerce.
 H5: Website design attitude of company has positive impact on customer
trust in e-commerce.