Abstract
This paper provides a description of the problem that the researcher intends to address, particularly about how risks can be managed in e-businesses. It also provides an annotated bibliography of three sources that will enable the researcher to provide answers to this problem. In particular, these sources discuss the importance of consumer trust in ensuring the success of online businesses; what the consumers’ concerns are; and how these risks can be managed. As well, a comparison and contrast of these three sources is made in order to show their relevance in relation to the research problem.
Statement of the Research Problem
With the increasing prevalence and popularity of businesses that are being conducted over the Internet, more and more people are joining the e-commerce industry. However, just like any business, even e-commerce comes with its own risks. As such, it is important for these online entrepreneurs to learn how to manage the risks that they are bound to experience as they conduct their business.
In this regard, this paper aims to discuss the various risks that are involved with the conduct of an e- business. In addition, it aims to provide information on the various ways by which these risks can be managed.
Annotated Bibliography
Bahmanziari, T., 2011. Risky choice in the ecommerce environment: A test of probabilistic mental modeling. Journal of Behavioral Studies in Business, 4, pp. 1-31.
In this article, the author described the findings of the study, which determined how assurance structures in ecommerce websites influenced consumer behavior, particularly their decision to make a purchase. This study made use of an experiment where the results were analyzed statistically. The results showed that the presence of assurance structures in ecommerce websites encouraged consumers to make a purchase as these assurance structures addressed the risks that the consumers felt about their privacy and personal information being compromised. As this was a formal research that was conducted by an expert in the field, this source can be considered as valid and credible.
Brendon, C. F., 2002. In ecommerce, customer trust is no longer an option: It is the requirement for success. Quality Congress. ASQ’s Annual Quality Congress Proceedings, pp. 355-361.
This article discusses the concerns of consumers when it comes to the purchase of online products and services. The author asserts that risks involving the consumers’ privacy and security, as well as risks on the service that they will receive, all affect the level at which consumers would trust an online business. In this regard, the author suggests the creation of standards and a certification body that would establish the trustworthiness and integrity of an online business. This article was part of the proceedings of the Annual Quality Congress, which was attended by experts in the field, ensuring that the propositions made in the conference were based on sound knowledge and expertise.
FirstData., 2010. Strategies for reducing the risk of ecommerce fraud. [online] Available at: < http://www.firstdata.com/downloads/thought-leadership/ecommfraudwp.pdf> [Accessed 13 May 2013].
This white paper provides information on the instances of fraud that occur over the Internet and how such activities are conducted. In addition, it provides information on the techniques and strategies that can be used to minimize the risks of online fraud. With FirstData being an ecommerce solutions provider for secure payments online, the content of this white paper can be considered as coming from a reliable and knowledgeable source.
Comparison and Contrast
The three sources selected complement each other in that taken together, they present a holistic view of risk management initiatives in ecommerce. For example, the study conducted by Bahmanziari (2011) established that the security of ecommerce websites influenced consumer behavior and decision-making. This is also emphasized by Brendon (2002) who goes further to provide detailed information on the concerns of online consumers. In response, Brendon (2002) suggests that standards and a certification body be developed to ensure the security of ecommerce websites, which will in turn establish consumer trust. In the same manner , FirstData (2010) provides information on the strategies and techniques for preventing the risk of online fraud, which also addresses the security risks with online businesses.
References
Bahmanziari, T., 2011. Risky choice in the ecommerce environment: A test of probabilistic mental modeling. Journal of Behavioral Studies in Business, 4, pp. 1-31.
Brendon, C. F., 2002. In ecommerce, customer trust is no longer an option: It is the requirement for success. Quality Congress. ASQ’s Annual Quality Congress Proceedings, pp. 355-361.
FirstData., 2010. Strategies for Reducing the Risk of eCommerce Fraud. [online] Available at: < http://www.firstdata.com/downloads/thought-leadership/ecommfraudwp.pdf> [Accessed 13 May 2013].
