The Impact of Privacy and Security in E-Commerce - Research Proposal Example

Running Head: research proposal Impact of Privacy and Security in E-Commerce of the of the of the [Course] Introduction With the advent of e-commerce, the brick and mortar presence of organizations has felt a setback. From financial to legal and healthcare to education, all kinds of information exchange and transactions are now being carried out through electronic means of communication, transmission and processing. However, this battleground has become more intense and competitive because of the four dominant issues in e-commerce dealings- trust, privacy, security and risk (Ackerman & Davis n.d). While most of the consumers are still naïve for these terms, the onus is upon the organizations in making these terms understandable and meaningful for the customers to make their electronic transactions safe and secure. Literature Review Privacy and security in e-commerce transactions is a three-legged stool comprising of customers, organizations and government. Intensity and implications of privacy and security in transactions vary according to the perception and understanding of the terms for these three entities. Government decides upon rules and regulations which have to be abided by the organizations. Organizations in turn chalk out plans and policies regarding privacy and security levels in their e-commerce facilities based on these government guidelines. The combined effort of government and organizations in respect of privacy and security in e-commerce infuses confidence, risk-appetite and willingness in customers to transact online. However, customers are getting more conscious of their privacy and security concerns in their online dealings which put pressure on both organizations and government. Thus, there is interdependency and interactions between these three entities with regard to electronic transactions. In this light, the customer-company interaction is the most important because while dealing electronically, customer provides personal data and information to companies and the matters of customer privacy and security are addressed and affected by the privacy practices being adopted and managed by companies. Under this company-customer interaction, the customer behavior and ultimately privacy and security in e-commerce dealings is affected by the company’s privacy policies and other characteristics namely site features, brand image, organizational status, et cetera. Conflicts regarding privacy and security issues in e-commerce emerge mostly from gaps and loopholes in this interaction field (Halaweh & Fidler 2008). Before getting convinced of the security and privacy concerns in any electronic dealing with an organization, customers check both the tangible and intangible features of the website. They are more likely to deal with an organization which is reputed and reliable and answers to their queries in an affirmative action. This is because according to the customers, tangible features do not guarantee the safety of their personal details (Belanger, Hiller & Smith 2002). An organization might be using the latest technology which cannot be hacked or decrypted but chances of it providing the personal details of its customers to third parties cannot be denied. This is where the intangible characteristics of brand image and reputation of the organization come into picture. Thus, how an organization offers information regarding its privacy and security policies, practices and features in front of its customers determines their perception towards the use of e-commerce in their transactions. Absence of such features lead to lack of trust between company and customer and more of risks being perceived by the customer in e-commerce dealings. Research Aims and Objectives Existing literature is replete of privacy and security concerns and their general implications. However, little has been researched with regards to the interaction between customer and company in developing a safe and secure e-commerce trading environment. As such, our research objectives emanate from this field which offers many opportunities to explore. Fig. 1 depicts the proposed research model in a simplified format. Specifically, our research objectives would be: 1. Can the propensity of customers to transact online be addressed and augmented by companies through well-developed privacy policies in place? 2. Customers usual perceive more security and privacy in e-commerce dealings when companies provide comprehensive privacy policy statements and management of personal information of customers. Does this effort fall on the positive side of securing the concerns of customers and how do they perceive this approach by companies? 3. How cultural differences work in establishing trust between companies and customers with regard to privacy and security in e-commerce? Fig. 1: Proposed Research Model Value and rationale of study Use of internet and e-commerce is ever increasing and it is all set to replace traditional means of buying and selling in traditional markets due to its simplicity, speed, ease of access and diversity. The typical buyer-seller relation in traditional transactions translates to customer-company interaction in e-commerce environment. As such, it would be beneficial for both the company and the customer community to know what factors affect the perceptions of privacy and security in electronic dealings and trading. Organizations especially tend to gain through this research piece as it helps identify factors inducing confidence and trust in the customers of company’s policies. They can modify, change or introduce new sections or policies to better their e-commerce facilities and attract more customers. Customers too can gain a lot from this research as they can clear off many of their doubts and understand what factors they should look for when dealing electronically with an organization. In a nutshell, this research piece serves as an action guide for customers but a strategic framework and policy suggestive piece for organizations. Research Methodology Though the research objectives offered in this research proposal offer a plethora of opportunities to work upon, existing literature is rich in providing a background to the exploration of aims and objectives. As a result, this research will be conducted as a combination of secondary research to gather basics of privacy and security concerns in e-commerce. Use of exploratory and descriptive study will be done to make use of models, theories and frameworks proposed by eminent researchers in this field and building up the base for this study. In this light, extensive use of journals, publications and books will be done. Secondly, use of case study approach (Tellis 1997) will be done because the objectives of this research primarily aim to find out the dynamics of interaction between company and customers in e-commerce environment. This section requires real time data and perspectives to arrive at different outcomes and judgments. Because of introduction of cultural factors also in the research aims, this study would take into account a few organizations dealing in different sectors and cultures majorly through electronic modes. Analysis and comparison of their following attributes will help us determine how customers perceive the risks, privacy and security and how likely are they to use electronic modes of dealing in future: Site appearance, level of disclosure of their privacy policy statements and use of technology in developing e-commerce facilities. Use of third party privacy seals by organizations. The financial performance of the selected organizations. Change in the customer base of the organizations after the introduction of e-commerce in their transactions. The brand image, reputation and reliability of the company. Such attributes will help us determine how customers perceive the associated risks, privacy, security and trustworthiness based on the above mentioned characteristics of companies. This will in turn decide the success or failure of e-commerce and its likely rise in the future. At least 4 organizations of different cultural origins are proposed to be covered through this case study approach for in-depth analysis and better results. References Ackerman, M.S & Davis, D.T. Jr. (n.d). Privacy and security issues in E-commerce. New Economy Handbook. Belanger, F, Hiller, J.S & Smith, W.J. (2002). Trustworthiness in electronic commerce: the role of privacy, security and site attributes. Journal of Strategic Information Systems, 11, p. 245-270. Halaweh, M & Fidler, C. (2008). Security perception in E-Commerce: conflict between customer and organizational perspectives. Proceedings of the International Multiconference on Computer Science and Information Technology, p. 443-449. Tellis, W. (1997). Application of a Case Study Methodology. Retrieved 5 February 2011 from http://www.nova.edu/ssss/QR/QR3-3/tellis2.html Read More