Effect of Online Trust on E-commerce: A Case of Kathmandu Valley

Abstract

The study examines the effect of online trust on E-commerce: A case of Kathmandu Valley. Customer preference on e-commerce are dependent variables. The selected independent variables are product information transparency, customer reviews and ratings, delivery reliability, brand reputation, product quality. The primary source of data is used to assess the opinions of respondents regarding effect of online trust on e-commerce. The study is based on primary data of 217 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation and multiple regression models are estimated to test the effect of online trust on e-commerce in Kathmandu Valley. The result shows that product information transparency has a positive impact on customer preference on e-commerce. It indicates that increase in product information transparency leads to increase in customer preference on e-commerce in Kathmandu valley. Similarly, customer reviews and ratings has a positive impact on customer preference on e-commerce in Kathmandu valley. It shows that better customer reviews and ratings leads to increase in customer preference on e-commerce in Kathmandu valley. Likewise, delivery reliability has a positive impact on customer preference on e-commerce. It implies that better delivery reliability leads to increase in customer preference on e-commerce in Kathmandu valley. Further, brand reputation has a positive impact on customer preference on e-commerce in Kathmandu valley. It indicates that higher the brand reputation, higher would be the customer preference on e-commerce. Moreover, product quality has a positive impact on customer preference on e-commerce. It states that higher the product quality, higher would be the customer preference on e-commerce in Kathmandu valley.