Abstract

The capabilities afforded by network technologies have resulted in numerous electronic commerce applications. But major issues remain which pose serious challenges to the growth and wide adoption of electronic commerce, one being the much talked about security concerns on the Internet (Bhimani 1996 and Froomkin 1996). Proponents of electronic commerce argue that security is a technology issue and has been addressed by various technology developments, such as cryptography, firewalls, and digital certificates, which is true to a certain extent. There is, however, another challenge that has not received as much attention in either the popular press or the research community - the quality uncertainty problem that could result in the public’s mistrust in products and services offered online (Choi et al. 1997). Being more of a social and economic issue than a technology challenge, the quality uncertainty problem can severely cripple the development of electronic commerce. How can people promote the trust necessary for efficient online exchange of products and services when individuals have short run temptations to cheat?

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