Causes of Mistrust and the Most Effective Authentication Tools for Improving Saudi Arabian Consumers ’ Willingness to Participate in E-commerce

E-commerce is facing different challenges globally, and in particular, in developing countries. In some countries ecommerce adoption is slow because of some barriers; such as lack of trust [3][5]. Customer trust is a significant issue in e-commerce since online services and products are typically not immediately verifiable [6]. Both vendors and consumers are forced to assume that the information that is being provided is accurate and non-fraudulent [7]. Therefore, customer trust significantly affects new customer acquisition, customer retention, and customer purchase intentions [8]. In addition, PC sales and Internet growth in the Kingdome of Saudi Arabia (KSA) are considered to be among the highest in the region (KSA Ministry of Commerce, Council of Saudi Chambers of Commerce and Industry). Also, the growth of internet usage in Saudi Arabia is considered to be tremendous and estimated to be 3,750% from 2000 to 2009. The number of Internet users is still growing and has recently reached 8.5 Million [8]. Although the number of internet users is increasing; still, ecommerce acceptance in KSA is modest. The lack of trust is considered as a significant barrier to e-commerce adoption, and it is one of the main reasons for customers avoidance of Internet purchasing [12]. From this perspective, how to encourage trust in buyers is an important research issue. Consumers typically have no problem navigating a site and acquiring information that is needed, however the issue of trust arises at the time when a decision needs to be made regarding making an electronic payment [9]. Wakefield mentioned, "Trust in a Web vendor is an important variable for the completion of an online transaction, and consumers who trust are more likely to exhibit positive online purchase intention. " In fact, when online customers have high confidence in the web-site's security measures they will be more willing to shop and purchase online. One of the main problems that causes fear to online shoppers is the issue of consumer identity theft. In fact, studies showed that “the growth of identity theft is damaging the consumer trust and confidence in ecommerce” [10]. Moreover, one survey reported that “57% of consumers believe responsibility for protecting their online identities and personal details lies with web-based companies” [10]. Identity theft is obtaining another’s personal information and using it without his/her knowledge or consent to commit fraud for financial gain or for another criminal purpose. The most common types of identity theft problems are related to payments card fraud, which hinders buyers from conducting online transactions. In fact, approximately 50% of all identity theft victims reported that a Credit Card was opened in their name or unauthorized charges were placed on their existing cards. There are different ways to build customer trust online. One of the most successful examples is eBay for its penalized policy. That is “trustworthy behavior is rewarded and untrustworthy behavior is penalized by the traditional process of communicating experiences from person-toperson” [11]. Other companies are using different devices to build trust with customers and are exploring the role of design, style, presentation, and electronic devices that ensure trust in e-commerce transactions. Another important method for improving consumer trust is by adopting strong user authentication techniques [1]. There are several different technologies that can be used for authentication, and these may operate with one another. For instance, in a study by the Federal Deposit Insurance Corporation (FDIC) in 2004[2], they listed some authentication methods such as passwords, the use of one time password, tokens, digital signature, and the use of some biometric authentication methods: fingerprints, iris scan, and face recognition. However, regardless that more effective solutions of authentication are generally more expensive, trust of customers may be more important. This research-in-progress intends to investigate the main causes of mistrust and hesitance of people in Saudi Arabia in purchasing products online. Moreover, it also looks into the Saudi consumers’ opinion about different authentication methods and how favorable they are of each, and determining if such authentication methods would improve the consumers' willingness to increase their level of ecommerce participation.