Critical Thinking in Business - Assignment Example

Name: Tutor: Title: Critical Thinking in Business Institution: Date: Question 1 Summary of the Article The research paper is basically about trust in the electronic retail business. Since the access to internet is increasing by the day, it has since become normal for people to carry out business online. In this scenario, the buyer and the seller do not have any form of physical contact. This situation therefore raises a lot of questions as to whether the seller will deliver the goods or whether the buyer will pay for the goods. This type of business is thus dependant on trust. The research was conducted among university students in the United States of America. This was mainly for the purpose of getting accurate answers since most of them are experienced in the e-retail business. Most of the students usually purchase goods online since they are readily accessible to the internet and it is also cheap. The study also sought to find out what goes on in the mind of a person before participating in the business. The study is quite important since it tries to analyze the future of e-retail based on the factor of trust by both the buyers and the sellers. The factors that affects trust will also be useful to the participants in the business as it will identify the areas of weaknesses ad thus help in finding solutions. The study also brings out the concepts that are used in e-retailing in a bid to measure the success of the business. The study can also be used for the purpose of determining the consumer trust on e-retail. The study was motivated by the fact that previous studies were not conclusive about the issue of trust. Most of the previous studies mainly dealt with the issues that were technical. However, the study identified trust as a psychological issue and thus more focus was placed on in for the purpose of finding the results. During the study several hypothesis were used to test the results. The hypothesis was able to establish that personality issues did not have any major significance on trust. It was however evident that perception based factors had a lot of impact on trust while carrying out online transactions. This is mainly attributed to the spread of information about certain sellers with poor reputations. Experience is also a contributing factor towards trust. The Study was able to establish that consumers who have more experience on e-retail have more trust as compared to those that are not experienced. The knowledge about security technology also had some impact on the trust by the consumers. However it does not mater a lot to most consumers although those that are experienced have more knowledge about the security technology. Positive attitudes towards shopping and computers did not have any impact on the level of trust by the consumers. These hypotheses were tested on the results from the two models that were used during the study. The hypotheses thus played an important role in the study and it greatly contributed to the conclusions of the study which were quite accurate depending on the results. During the study, two models were used to carry out the statistics and analysis of the results. Model two had more statistically significant figures than model one. The f-ratio of regression is also different in the two models. In model one, the f-ratio of regression is 11.03 and statistically significant at p< 0.01. On the other hand. The R square has been adjusted to 0.72. In model two, the f-ratio of regression is 18.26 and it is significant at p Read More