Ethical Issues and Practices on the Basis of online Retailing

Chapter 1

Ethical Issues and Practices On The Basis Of Online Retailing

Introduction:

          A broad definition of e-commerce is the use of telecommunications and computers to facilitate the trade of goods and services. E-commerce technology is considered the new wave of IT according to (Saad and Zayed, 2010). It is an important trade channel without distance between products and consumers according to (Lucian and Farias, 2009). Online Retailing activities have grown dramatically in the past few years and is poised to grow even more so. E-commerce provides information to visitors and allowed retailers for targeting, positioning and delivering goods and services to match their needs and wants continuously. Some issues such as privacy, security and other ethical problems continue to be hotly debated in literature. For example recent research conducted on 1009 USA consumers in 2005 indicated that; one of four American consumers wouldn’t shop online because of Internet Security concerns (Roman, 2007).

             The incredible growth of e-commerce presents ethical issues by the way Internet represents new environment for unethical behavior according to (Freestone and Michel, 2004). Although many businesses are acknowledging the importance of e-commerce and online retailing activities, little attention has been given to the business community’s perceptions of the ethicality of this medium (Bush et al., 2000). Although there are many different types of Internet sites, such as (online newspaper, portals, free download sites, customer to customer sites like eBay) but this research is focused on online retailing and online shopping sites like ‘limango.com’, ‘markafoni.com’, ‘hepsiburada.com’, “amazon.com’, and ‘eBay.com’ so forth.

               It takes time to integrate morality into e-commerce and online retailing activities (Mahmoud et al, 2006). According to Albers Miller (1999); “when there is a lack of fear of punishment, people do engaged in inappropriate behavior behavior” and the online retailing has paved the way for many new forms of aberrant behavior, of which some are new and others are technologically updated versions of long standing ethical debates according to (Freestone and Michel, 2004). Internet is very composition involves different mediums, including television, telephone lines and print. Thus these unique characteristics make the internet difficult to regulate. Citera et al. (2005) revealed that; ethical transgressions are more likely to happen in e-transactions as compared to face to face transaction.          

The main purpose of these study attempts to offer more insights into the consumers’ perceptions regarding the ethical issues of online retailing. And the second part of this study, E-commerce and important issues related to consumers’ privacy protection in e-commerce and other ethical issues in online retailing issues are analyzed.

Statement of the Problem

          The rapid spread of e-commerce and online retailing has created tremendous opportunities for economic efficiency and customer choice. Use of the global Internet computer network for e-commerce activities provides some advantages to the consumers on their daily life. On the other hand Internet represents a new environment for unethical behavior. While technology has witnessed extensive growth in last decade, consumers concerns regarding ethical issues also continue to increase. Even many consumers and businesses are reveling in e-commerce; consumer problems related to online retail become the dark side of the issue.

              The study aimed to compare Online Retailing to actual/personal shopping inside the mall.

1. Which does the costumer prefer in terms of business?

1. Traditional retailing in a traditional business
2. Online Retailing through e-commerce and internet

1. Which does the customer prefers in terms of shopping?

1. In-store
2. Online

1. What would be the most importance to an online retailing user?

1. Security
2. Trust
3.  Privacy

Hypothesis and Research Model (Based in Turkey)

To address consumers’ perceptions regarding the ethical issues of online retailing in turkey, we have established the following hypothesis that we intended to test utilizing the survey results:

Hypothesis 1: There is at least one significantly different city among others in the perception of the consumers’ about online retailing sites have adequate security features.

Hypothesis 2: There is at least one significantly different city among others in the perception of consumers’ about online retailing sites comply with privacy policies.

Hypothesis 3: There is at least one significantly different city among others in the perception of consumers’ online retailing sites truthfulness about their offering.

Hypothesis 4: There is at least one significantly different city among others in the perception of the consumers’ about online retailing sites reliability is high.

Figure 1: Socio Demographic Profile from Izmir

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Figure 1.1 shows that 52% Male and 48% Female are into online shopping, this table is according to Izmir’s study.

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Figure 1.2 shows that Male ages 20 and up and female ages 18 and up are most likely purchasing online.

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Figure 1.3 shows that 92% of students are most likely to purchase online and the rest are only 1% chances.

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Figure 1.4 shows that when it comes to income, Employed person is most likely to purchase online.

Figure 2: Socio-Demographic Profile from Manisa

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Figure 2.1 shows that 66% of Female and 39% of Male are purchasing online based to Manisa’s study compare to Table 1 that male leads.

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Figure 2.2 shows those female ages 20-30 and male ages not less than 20 are purchasing online.

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Figure 2.3 shows that 53% students are purchasing online while only 27% employed and 20% unemployed purchasing online.

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Figure 2.4 shows that employed person patronizing online shopping.

Figure 3: Socio-Demographic Profile from Mersin

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Figure 3.1 shows that when it comes to gender 56% of Female and 44% of Male are into online shopping, this is based to Mersin’s study.