vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF FIGURES
xii
LIST OF TABLES
xiv
LIST OF ABBREVIATIONS
xvi
LIST OF APPENDICES
xviii
INTRODUCTION
1
1.1
Introduction
1
1.2
Background of Study
3
1.3
Problem Statement
5
1.4
Research Questions
8
1.5
Research Aim
9
1.6
Research Objectives
9
1.7
Scope of the Study
10
1.8
Significance of the Study
11
1.9
Structure of the Thesis
11
viii
2
LITERATURE REVIEW
13
2.1
Introduction
13
2.2
Overview
13
2.3
Online Trust
14
2.3.1
Trust and Gender
15
2.3.2
Trust and Age
16
2.3.3
Trust in Online Purchase
17
E-Commerce and Social Networking Sites
18
2.4.1
Electronic Commerce
19
2.4.2
Social Networking Sites
22
2.4.2.1 Facebook
23
2.4.2.2 MySpace
24
2.4.2.3 Friendster
24
2.4
3
2.5
Previous Studies Related to the Research
25
2.6
Proposed Model and Hypotheses
32
2.6.1
Testimonial
32
2.6.2
Propensity to Trust
34
2.6.3
Experience in Internet usage
34
2.6.4
Monetary Risk
35
2.7
Research Model
38
2.8
Conclusion
37
RESEARCH METHODOLOGY
38
3.1
Introduction
38
3.2
Stage of Research Process
38
3.3
Research Design
41
3.4
Sampling Frame
41
3.4.1
Sampling Technique
42
3.4.2
Population and Sample
43
3.5
3.6
Data Collection Technique
43
3.5.1
44
Primary Data
Research Instrument
44
3.6.1
Section A: Demographic Data
45
3.6.2
Section B: Identification of Factors
ix
Influencing Consumer Trust in Online
Purchase via SNSs
3.7
Research Hypothesis
47
3.8
Pilot Study
48
3.9
Normality Test
48
3.10
Reliability Data Analysis
49
3.11
Validity of the Instrument
50
3.12
Data Analysis
50
3.12.1
Descriptive Analysis
51
3.12.2
Independent t-Test
51
3.12.3
Analysis of Variance (ANOVA)
51
3.12.4
Hypothesis Testing
52
3.12.4.1 Multiple Regressions
53
3.13
4
46
Summary
53
RESEARCH FINDING
54
4.1
Introduction
54
4.2
Background of Respondents
54
4.2.1
Genders
55
4.2.2
Age
56
4.2.3
Ethnic
56
4.2.4
Education
57
4.2.5
Type of Social Networking Sites
58
4.2.6
Experience in purchase using Social
Networking Sites
4.2.7
59
Maximum amount of single online purchase 59
4.3
Normality test
61
4.4
Validity and Factor Analysis
62
4.5
Reliability Analysis
64
4.6
Mean Analysis
65
4.7
Independent T-Test
66
4.8
ANOVA Analysis
68
4.9
Multiple Regression Analysis
69
4.10
Conclusion
72
x
5
DISCUSSION AND CONCLUSION
73
5.1
Introduction
73
5.2
Discussion of the Research Objectives and Hypothesis73
5.2.1
Objective One: to Measure the Level of
Trust among Consumer in SNSs
5.2.2
74
Objective Two: to Examine whether there are
Differences in Trust Level between Male and
Female in Online Purchase via SNSs
5.2.3
75
Objective Three: to Examine whether there
are Differences in Trust Level in Online
Purchase via SNSs According to Age
5.2.4
76
Objective Four: To Investigate Factors that
Influence Consumers’ Trust in Online
Purchase via SNSs
76
5.2.4.1. H1: Testimonials have Positive
Effects on Consumer Trust in Online
Purchase via SNSs
77
5.2.4.2. H2: Propensity to Trust Positive
Effect on Consumer Trust in Online
Purchase through SNSs
78
5.2.4.3. H3: Experience has a Positive
Effect on Consumer Trust in Online
Purchase through SNSs
78
5.2.4.4. H4: Monetary Risk Affects
Consumer Trust in Online Purchase
via SNSs
5.3
79
Contributions
80
5.3.1
Contribution to Academic
80
5.3.2
Contribution to Practices
81
5.4
Limitation of this Research
81
5.5
Recommendations for Further Research
82
5.6
Conclusions
83
xi
REFERENCES
84
Appendix A
97 - 100
xii
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Complaints of the Internet Crime
7
1.2
Structure of Thesis
12
2.1
Global Average of Online Purchase
18
2.2
Research Model
37
3.1
Research Process
40
3.2
Example Questions for Demographic Data
46
4.1
Respondents’ Gender
55
4.2
Respondents’ Age
56
4.3
Respondents’ Ethnic
57
4.4
Respondents’ Education Level
58
4.5
Respondents’ Type of SNSs
58
xiii
4.6
Respondents’ Experience in Purchasing Through
59
SNSs
4.7
Analysis of Maximum Amount of Single Online
60
Purchase Based on Percentage
4.8
Research Model
71
xiv
LIST OF TABLES
TABLE NO.
TITLE
PAGE
1.1
Internet Users in the World
2
1.2
Mode of Online Payment
4
2.1
Summarize of Literature Review
30
3.1
Summary on Type of Data and Questions
45
3.2
Likert Scale Table
47
3.3
Value Range of Cronbach’s Alpha
49
3.4
The Summary from Analysis Methods
52
4.1
Summary for Demographic Variables
60
4.2
Graphical Method
61
4.3
KMO and Bartlett's Test
62
4.4
The Element of Item before and after
63
Factor Analysis
xv
4.5
Result of Factor Loadings for Each Item
63
4.6
Cronbach’s Alpha Reliability Test
65
4.7
Mean Score for Consumer Trust in Online
66
Purchase via SNSs
4.8
Independent t-test
67
4.9
Group Statistics
67
4.10
ANOVA
68
4.11
Descriptive Analysis
68
4.12
Model Summary
70
4.13
ANOVAb
70
4.14
Co-Efficient Results
71
5.1
Summary of Overall Result
74
5.2
Summary of Regression Analysis
76
5.3
Summary of Hypothesis Results
79
xvi
LIST OF ABBREVIATIONS
ANOVA
Analysis of Variance
B2B
Business to Business
B2C
Business to Commerce
B2G
Business to Government
C2C
Consumer to Consumer
CT
Consumer trust
e-bookstores
Electronic Bookstores
e-business
Electronic Business
e-commerce
Electronic Commerce
e-marketers
Electronic Marketers
EXP
Experience
FA
Factor Analysis
ICT
Information and Communication Technology
xvii
KMO
Kaiser Meyer-Oklin
M2C
Mobile to Commerce
MR
Monetary Risk
PT
Propensity to trust
RM
Ringgit Malaysia
SNSs
Social Networking Sites
SPSS
Statistical Packages of Social Science
TEST
Testimonial
VIF
Variance-Inflation Factor
xviii
LIST OF APPENDICES
APPENDIX
A
TITLE
Questionnaire: Factors Influencing Consumers’ Trust in
Online Purchase via Social Networking Sites
PAGE
97