Index Number:

PROGRAMME

____UOS YEAR 3 Business and Marketing Management______

ASSESSMENT COVER SHEET / FEEDBACK FORM

Student Name & ID: Adkham Akbarov Module Name/Code:

MDIST ID: B1300028 Business Research Dissertation / UGB 301

UOS ID: 149093110

Center / College: MDIST Due Date: 05.05.2017 Hand in Date: 01.05.2017

Assessment Title: Individual work

Learning Outcomes Assessed:

Learning Feedback relating learning outcomes assessed and assessment criteria given
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Assessors Signature: Overall Mark (subject to Moderators Signature:

ratification by the assessment
board)

Students Signature: (you must sign this declaring that it is all your own work and all sources of

information have been referenced)

1
 University of Sunderland
MDIS Tashkent campus

How Uzbek online shopping markets can build trust

relationship with customer

Adkham Akbarov
BA “Business and Marketing Management”
UGB 301 - Dissertation
149093110 / B1300028

2
 Acknowledgements

This research would have been difficult to complete without assistance of the following
individuals.
I would like to say many thanks to my lovely family members and also friends for being
extremely encouraging and supporting me all the time.
I also would like to express my appreciation to respondent research participants for their
interaction and valuable information provided.
I am very grateful to Ms. Naylya Ibragimova, my supervisor, who provided guidance, and
support in the period of dissertation writing
At last, I would like to thank all my course mates, teaching and administrative staff whom I had
the good fortune to know throughout the whole study years in MDIS in Tashkent.

3
 Abstract
The business world welcomed emphatically information technology changes. As a result the
process of individual communication between consumers and sellers while making purchases, slowly
but surely gives its position to their interaction through online stores and services. Nowadays, the e-
commerce in Uzbekistan is relatively young in comparison with the developed countries such as U.S,
South Korea, Japan, and England and so on. Only in the beginning of the 2015, new law regulating
the establishment of e-commerce in Uzbekistan was introduced, and the recently president of
Uzbekistan Shavkat Mirziyayev has signed the document directed to establish high class internet
signal till the 20211. However, the process of integrating innovations as well as unexplored induces
distrust.

This research showed the main factors which indentify “trust”, hence to determine success of
the online business. The goal of this dissertation is to clarify the incentives to buy online and find out
the factors that are essential to build trust to domestic e-commerce companies. Moreover, by
clarifying these factors I analyze to what extent the existing theories and their approaches can be used
to situation in Uzbekistan to inspire individuals while making purchase in arba.uz and lebazar.uz
(local online stores). The results show that in Uzbekistan online e-commerce is still not popular and
such factors as privacy and security were selected by respondent as important trust factors.

1
President of Uzbekistan introduced the document where internet should be faster, provide high quality and more safety.
http://kun.uz/news/2017/02/07/uzbekiston-respublikasini-anada-rivozlantiris-bujica-arakatlar-strategiasi-tugrisida
4
 Table of Content
I. Introduction

1.1 Background of the study

1.2 Statement of problem

1.3 Purpose and research question

1.4 Limitations

1.5 Disposition

II. Literature review

2.1 Definition and classification of e-commerce

2.2 Trust issues

2.3 Security and privacy issues

2.3 Solution for trust

III. Current trends in Uzbekistan

3.1 Development of e-commerce in Uzbekistan

3.2 Payment methods in Uzbekistan

IV. Research and methodology

4.1 Choice of methodology

4.2 Data collection

V. Data analysis and findings

5.1 Introduction

5.2 Questionnaire data

5.3 Findings

VI. Conclusion

6.1 References

6.2 Appendixes

1.0 Introduction

5
 This chapter states background and significance of the study, research purpose and research
questions.

1.1 Background of the study

In today`s rapidly changing world, internet plays a significant role in each individual`s lifetime.
The web gives global opportunities for both players such as the business and consumers and acts as a
bridge between these two players. For companies, online shopping means an access to the new
market, which means that the products are available at any time without leaving home for customers.
Moreover, it helps to expand their sphere of activities and will increase the revenue further. On the
other hand, for buyers it may allow to save an amount of time and of course money, by evaluating the
alternatives and comparing the prices and at the end making purchases at home using plastic card.

First law named “On Electric Commerce” was introduced in Uzbekistan on April 29, 2004. Ten
years later, in accordance with the order of the first president of Uzbekistan Islam Karimov, as means
to improve e-commerce in Uzbekistan, in regular session of the Legislative Chamber “Oliy Majlis”
was discussed the draft version of “On Electric Commerce” law, made by Cabinet of Ministry. New
edition of the law which includes new policies and regulations was signed by Islam Karimov on May
22, 20052 (UzReport 2015). This event serves as a green light for many businesses to introduce their
products and services available online.

However, the biggest problems related to e-commerce still not solved are trust and security.
Online shopping fundamentally is related to online transactions, where a big number of customers
feel themselves still unsecured. According to surveys, the great amount of them are fake websites
which are identical with the real websites, but the aim of the fake sites is to get access to the
consumer`s personal information and to commit an online fraud.

As the issue of trust building is one of the most essential factors in e-commerce, this
dissertation will focus on the main factors that make the customer purchase online and set up trust
amid consumers in Uzbekistan. To make the research more specific, B2C (Business to Customer)
method of business via internet will be analyzed and illustrated in details.

1.2 Statement of the problem

2
President of Uzbekistan signs the Law "On electronic commerce" №108 in the new edition -
http://news.uzreport.uz/news_8_e_131902.html

6
 Nowadays, we find out that in e-commerce, the significance of trust becomes irreplaceable. But
Uzbek people prefer traditional way of shopping, such as going to bazaars and nearby supermarkets
instead of electronic shops, because of absence of physical clues as well as direct contact with the
seller. Moreover, the situation which is beyond our control induces distrust and also customer who is
making online payment via credit card for some reason involves himself/herself into the risk to be
deceived. Furthermore, in building trust for online retailing, companies are organizing less
presentations, events and promotions to inform consumers about more secure system and its new
options. Another factor that prevents customers to engage in e-commerce is the relatively short
existence of this market, which means not correctly organized logistic system.

1.3 Purpose and research question

The goal of the dissertation is to ensure both, the e-commerce companies and future
professional marketers, with clearer understanding of buyer behavior and attitude towards electronic
commerce in Uzbekistan. In the next stage the essential aim is to identify the role of the particular
issues to ascertain trustworthy behavior among individuals to make online purchases.

Research questions that serve as a basis for this dissertation are focus on trust as well as
security issues in online shopping:

A. What convinces customers in Uzbekistan to shop online?

B. Which factors create trust in online shopping in Uzbekistan?

C. How the e-commerce firms deliver the message of main goal which is to build so
named “Trust Bridge” between consumer and company, moreover the safety of personal
information?

1.4 Limitations

Since that e-commerce sphere is broad, it was impractical to cover all spheres where online
shopping in Uzbekistan should be developed, due to lack of time and financial resources. Hence, this
project was focused on B2C (Business and Customer) e-commerce, and related trust and security
issues.

So, this dissertation will examine the real possible solutions, which should assist to minimize
the level of mistrust rate among purchasers towards online shopping websites in Uzbekistan.
Moreover, the last point is connected with the sphere where the survey was held. As the prepared
questionnaires where dispensed in main towns, such as Tashkent region, metropolis of Uzbekistan as
well as in the business centers of Tashkent, the results may have been a little bit different, while
applying to online shopping companies in other cities in Uzbekistan.
7
 1.5 Disposition

So in the following chapter different theories will be discussed related to trust in online
shopping field in order to find out the main problems as well as applicable solutions to the issues. In
addition, brief information about the improvement of e-commerce in Uzbekistan as well as payment
methods will be provided. In chapter three, the methodology of research, its strategy, approaches and
questionnaire are illustrated. Chapter four shows the analysis of the gathered data, its summary as
well as further discussion on it to what extent proposed theories are identical with the answers of the
customers gained in a survey. The last and final chapter is conclusion and in this section comparison
amid actual results and also expectations before the research is clear and proved.

2.0 Literature review

In the second chapter, the numbers of articles published in Information Systems (IS), marketing
journals relative to trust, literature as well as theories, which supplies foundation information, are
examined. This chapter`s beginning point is determining e-commerce as well as its types, and next
turn on a brief overview of e-retailing development in Uzbekistan and also accessible payment
methods. Furthermore, the basic elements which are indentifying trust and security issues are
provided. So, at the end of this section, feasible solutions dependent on trust and security are given in
appropriate order.

A. Definition and classification of e-commerce

E-commerce (electronic-commerce) comprise “business communications and transmission

over networks and through computers, specifically the buying and selling of goods and services, and
the transfer of funds through digital communications” (Hutt & Speh, 2004, p.199) that alludes to
business in the web.

In the more extensive connection about “e-commerce” is any commercial transactions

conveyed out through electronic method for communication. The following types are below:

1) Electronic commerce;

2) Electronic data interchange;

3) Electronic messaging, Electronic mail, facsimile, data transmission from the computer
to a fax;

4) Electronic funds transfers;

5) Electronic reference books, directories, message boards;

6) Continuous data collection system;

8
 7) Service news and information services;

8) Electronic forms;

9) Internet access to other online services.

The fast increase of e-commerce will be because of its benefits and advantages. The
fundamental ones are:

1) Critical decrease in the carrying out marketing examination as well as transaction costs;

2) Tending to those distance;

3) Making conditions to regulate contact for coordinating parties;

4) Providing competitive advantages in the worldwide business for small moreover medium-
sizes enterprises;

5) Developing market transparency: the purchasers as well as merchants might right away gain
information around those prices of the items, delivery conditions offered by competing
companies;

6) Aversion of negative issues, such as criminalization about business sector, tax evasion, also
etc.

Business operations can be carried out straightforwardly between companies, customers

moreover amid firms and government agencies.

E-shopping may be actualized in the structure of the web economy, which may be frequently
referred as Network Economy – the environment in which each organization or individual classified
in any level in the economic system might connect without difficulty as well as cost effectively with
other firm or individual concerning trade, to interchange know-how and ideas, or barely for
entertainment (Hutt & Speh, 2004).

B. Classification of the basic types of e-commerce

E-commerce market is very wide, difficult as well as can be used for various objectives.
Business information services in one of the types of e-commerce, for instance, services is selling
breaking news or essential information for customer for marketing goals. It can be search tool as well
as ads found (Slevin, 2000).

9
 According to, Statens Offentliga Untrdningar (SOU) (1999:106)3, 2-types of e-commerce are
noticed, which are indirect as well as direct. Indirect e-retailing is when a customer orders an item
online, and then pays via an invoice or by cash after delivery. Contrariwise, direct e-commerce, is
when the purchaser orders, pays for it, as well as gets the digitalized item (intangible product), for
example, music, services, movies delivered online.

From three main models such as B2B, B2C, C2C (Hutt & Speh, 2004, p.212) 4 , the most
popular type e-commerce displayed in Uzbekistan is B2C method.

B2C method (Business to customer)

This is the sort of E-retailing transaction, in which the firm (in our case the website) sells
directly to the customer. It’s about fleet sale of products. The stage for this kind of E-business
transaction could be for exchange aims as well as brand working, with the basic reason changing
customer mentality by getting more support for the items and services. Here the buyer has a great
opportunity to compare costs before settling on a buying decision and furthermore the business can
relate straightforwardly with the customer without the participation of middleman. Moreover, sale of
non-institutionalized items is likewise feasible on this sort platform. For instance, amazon.com,
aliexpress.com, and Uzbek local websites such as arba.uz and lebazar.uz are all B2C. For e-shopping
companies the force of web permits to observe as well as control the demand.

E-commerce is one of the rapidly increasing spheres and individuals purchase online for a
number of reasons, benefits which the companies, society as well as customer gain from it. Hansen
(2005) highlighted the main benefits gained from E-commerce5.

For companies:

1) Business runs (24/7/365)

2) Improving the supply chain

3) Personalization

4) Global scale

5) Low cost of distribution of digital items

3
SOU – Statens Offentliga untredningar, (1999:106). “Konsumenterna och IT – en untredning om datorer, handel och
marknadsforing”. Stockholm: Norstedts Tryckeri.
4
Hutt, M.D. & Speh, T.W. (2004). “Business Marketing Management – A Strategic View of Industrial and
Organizational Markets”. 8th ed. Mason, Ohio: Thomson South-Western.

5
Hansen, J. (2005). 100 sidor: Om att starta, driva och marknadsfora en butik pa natet. Stockholm: Redaktionen.
10
 6) Fast production of products on the markets

7) Reducing costs

For customers:

1) Personalization

2) Prompt delivery

3) Growth in e-literacy

4) A broad brand of products and services

5) Great opportunity to find and select more profitable offers easily

6) Legal ubiquity

For society:

1) A broad brand of services provided

2) Increasing national security

3) Reducing the “digital” gap

4) Enhancement of Living Standards

C. Trust issues

Online purchasing is more based on trust, and it’s more complex than making purchases in a
traditional methods. On the Web, it is difficult to establish trust amid the seller and purchaser. In
most social associations including dependency as well as uncertainty, trust is commonly an essential
component. A team of researchers finds that: “Online transactions and exchange relationships are
not only characterized by uncertainty, but also by anonymity, lack of control and potential
opportunism, making risk, and trust crucial elements of electronic commerce” (Petrovic, Ksela,
Fallenbock & Kittl, 2003, p.55). Trust is more unconstrained than arranged action and in various
conditions it is uncovered likewise in various ways (Gefen, 2000). Contradictions are discovered
nearly in each sphere where trust was characterized, beginning from psychology, followed by
marketing and management, to innovation. Clearly, one accepted definition for this term would make
the procedure of examination less demanding. What we have here is three basic characteristics that
displayed in every field and give undoubtedly about their pertinence. They are trustworthiness,
benevolence and capacity. In 1995, this idea was presented by Mayer, then upheld by Gefan in 2000
and Bock, Lee and Kim in 2012 (Gee-Woo Bock, 2012) (Gefen, 2000). Indeed, respectability is
11
ethical as well as moral procedures performed by dealer towards purchaser, which are discovered
appropriate and passable, while capacity is seller`s specialized abilities in certain processes, lastly,
benevolence concerns the goodwill of the merchant, and their willingness to stay faithful to their
commitments (Yung Ming Lee, 2010). Figure one on the following page, demonstrates the trust
levels in the period of the different exchange stages.

Figure 1 Trust levels during transaction phase.

(From Petrovic, O., Ksela, M., Fallenbock, M. & Kittl, C. (2003). Trust in the Network Economy. Vol. 2. Wien:
Springer-Verlag Wien New York. p.339)

There are diverse strategies that can be utilized to build up a feeling of trust on a site.
Businesses aren’t ready to direct control the trust their consumers feel. They can simply fabricate
conditions that encourage users to feel trust. Moreover, in some situations, several strategies will
work superior to others; however it`s essential to think over about all trust establishing selections
while creating the entire trust establishing technique. Cases of strategies that are utilized to promote
trust on the Web are (Ibid):

- Marketing: To make a persuading message around reliability and to get it out to potential
consumers via marketing is an essential approach to begin to create trust.

- Education: For a potential client, excretion about how a procedure, website, or administration
functions can frequently aid to set up a fundamental confidence.

- Trust seals: Companies can have seals, by putting an ensuring body behind a specific stamp, to
profit by the affirming body`s dependability.

12
 - Community: Word of mouth is a viable approach to convey trust.

- Transparency: The most ideal way to abstain from harming trust is to be clear about information,
to encourage coordinate correspondence between group participants as well as to show be honest
circumstances that emerge and not hiding them.

- Protection: A feeling of trust can be built up with the assistance of protection projects.

- Code: Intense components for building trust originate from the code hidden for a site or
administration.

- Dispute resolution/redress: Online question determination offers a plausibility for a negative

trust experience to be settled without that the member`s perspective of trustworthiness in the
webpage or service is being impressive hurt.

D. Security and privacy issues

Concerning trust in internet business there are two principal components that make individuals
make feel save in online exchanges, especially security and privacy. Security issues identified with e-
commerce are normally connected with online fakes, cyber attacks and abuse of personal data. In any
case, now these elements stay vital for customers just when they do their first online buy. Afterwards,
individuals are more worried with security issues, for example, unauthorized access of third parties,
utilizing cookies, viruses and getting spam. As indicated by some studies, customers even didn`t read
security and privacy policies of online stores when they are doing another buys on the web. This
marvel demonstrates that with regards to setting up trust in e-commerce, the inclinations can change
dramatically. Potential client may feel reluctant to buy on the web, if the online-shopping requests to
write down their social security number regarding the request. At the point when a social security
number is asked, individuals regularly get insecure and suspicious. Along these lines, if clients are to
state delicate info about themselves, it is vital for the organization to elucidate that data handled
pursuant to particular law in this field like, in Sweden the law PUL, Personuppgiftslagen (Hansen,
2005) This is an approach to ensure that the customer data won't be insulted or sold to various parties
(Windham and Orton, 2000)6. Regardless of the possibility that security worried as one of the most
improved perspectives in online business, a few companies are still committing regular mistakes in
risk controls. As a matter of first importance, numerous firms are concentrating on security of their
business simply after occurrences, which make them receptive, as opposed to proactive. Another
normal trap honed by organizations is rarely updates of security practices to manage with new

6
Windham, L. & Orton, K. (2000). The Soul of the New Consumer – The Attitudes, Behaviors, and Preferences of e-
commerce. New York: Allworth Press.
13
difficulties. Once the organization gets notoriety of unreliable organization, the measure of
dependence to this specific internet site will decline.

The new security solutions are produced, it is essential that Web sellers remember to likewise
educate their consumers about how these new solutions function. To take one case, it may not be
evident for clients that today sensitive data is scrambled when sent over the Web, to guarantee
unwavering quality and privacy (Hansen, 2005). Moreover, the payment settlement data can be
scrambled by the buyer before being sent to the merchant. The merchant then passes it on the
consumer`s bank, which decodes it as well as arranges the payment to the seller. In spite of the fact
that encryption is said to guarantee dependability and protection, this security solution, as indicated
by Loshin and Murphy (1997)7, still have security gaps. Once in a while, it appears like the dangers
to security are increasing faster than the solutions are. Hackers dependably appear to be one step
ahead (Shoniregun, Omoegun, Brown-West and Logvynovskiy, 2004)8. For instance, today sameness
larceny is an increasing issue (Cazier, Shao and St. Louis, 2006). In this manner, it is not unusual that
the Web security is an essential concern which makes clients reluctant to shop on the Web. To finish
up, guaranteeing security as well as reliability is two fundamental components significant for the
purchasers when buying online as well as for building up trust.

E. Solutions to build trust

Trust between the parties concerned is fundamental principle of any business operation. To do
this, the company must build up a plan of action that is confident for purchaser. Moreover, the secret
of impeccable Internet site that will have value for shoppers is still stays unfamiliar. In spite of the
marketing channel utilized by provider and sales of its items, or customary system, the essential rule,
but stays unaltered. Providers must conform to the commitments that they need their exchanges and
client relationships to be effective. In this manner, purchaser confides in the firms an essential for
keeping up the strength of the business relationship between the two parties. Generally, trust in
business relationships emerges as an outcome of a particular combination of social, business and
legitimate parts of evolving after some time. A large portion of these approaches can't be rehashed in
the operations completed with e-commerce. In this way, to make a successful effective system of
transaction in electronic commencing on the base of common trust, it is important to look at how it
emerges. Trust proposes that one of the parties can or ought to depend on the sincerity of the aims of
others. In the meantime depending party is especially helpless in light of the fact that they rely on the
outcomes of alternate activities. So, if their anticipations are unfulfilled, there is an absence of

7
Loshin, P. & Murphy, P. (1997). Electronic commerce – On-line Ordering and Digital Money. 2nd ed. Rockland,
Massachusetts: Charles River Media, Inc.
8
Shoniregun, C.A., Omoegun, A., Brown-West, D. & Logvynovskiy, O. (2004). Can ecrm and Trust improve ec
customer base?. Proceedings of the IEEE International Conference on E-Commerce Technology.
14
confidence, in which the harmed party feels its helplessness to the activities of the other party, the
behavior of which can't control. The oppressed party has the privilege to consider himself as a victim
in the event that it brought about offense not properly made up for the profits procured by it.

As trust is an essential component request to gain customers` beliefs to make online business
absolutely a reliable marketplace, a few elements are displayed as solutions for the trust issues within
e-shopping. Initial four trusting beliefs, by Salam (2005), are introduced, and then 7- basic variables
that influence trust by Ofuonye are revealed.

1. Four Trusting beliefs

The primary trusting belief displayed by Salam is Belief in the consideration of the Internet
vendor, which is about the purchaser perception, about the attributes of the seller, for example,
mindful, concern, positive attitude and others. The authors imply that the way purchasers are being
dealt with and treated by the e-commerce`s merchants, has a massive affects on the customers trust to
online business (Salam, 2005)9

Belief in the respectability of the Internet seller is the second trusting belief elements, which is
about qualities such as reliability, integrity, dependability, honestly, carefulness. Moreover, the
authors imply that belief in uprightness has a very essential part as a means to receive trust. The
classification this belief has a place with is about, more or less, the consumers` security and their
data, the privacy components as well as personal information of shoppers that the sellers have access
to. Pursuant to authors, it is essential to consider this belief of buyers truly, generally shoppers would
feel unverifiable about sharing their privacy as well as personal data to the sellers, which results into
distrust being made among the purchasers (Salam, 2005).

Assist the third belief, faith in the skill of the Internet seller, is about the item as well as service
the merchants accommodate the buyers. The authors assert that the service incorporates from the
moment a shopper enters an Internet site to the very end, which would never gets end. Moreover,
they imply that good service is required under the entire procedure beginning from assembling,
ordering, delivery, service after deal and solving consumers` issues. The products` condition ought to
be as great, if not better, as it is appeared on the webpage, so the buyers don't feel tricked as well as
get frustrated. So, the authors focus on the significance of this faith and imply that the service
providing for customers, the way purchasers encounter the webpage and satisfying of the consumers`
desires have an essential part making trust among the buyers (Salam, 2005)

The 4th and last trusting belief introduced by the authors in Belief is the consistency of the
Internet seller. This faith depends on two components, consistency and predictability. The authors

9
Salam, L., I. (2005). Trust in e-commerce. Communications of the ACM, p. 73-77.
15
imply that a proprietor of a website ought to dependably attempt to reduce the potential dangers,
which give distrust among buyers. This classification of belief expects to help customers to decide
three outcomes of a vendor` s reliability. The first is shopper evolution, which is about the judgment
of the buyers, if the seller is trustful or not. The trust here figures out whether transactional
relationship, between the shopper and the merchant is being made or not. In the event that the
relationship is made, then the purchaser will share his/her own data with the seller. The second one is
considers he/she is there to look for data or for doing some sort of commercial transactions. Also, the
authors imply that it is vital for the Internet sites to have a format that wins the purchasers trust. The
third one is called real visits to a webpage, which implies that it is imperative to make trust among
clients so they have the goal to utilize a vendor`s webpage.

2. Seven basic components that influence trust

The seven basic elements, introduced by Ejike Ofuonye, have huge effects on buyers towards
firms or in inverse direction. The first is usefulness which clarifies that the more a webpage is
fruitful, the more it is trustful for the customers. The authors imply that when a client gets involved
with an internet site, she/he needs to accomplish his/her objectives in the simplest way. That is the
reason an internet site, ought to be significant for its users` objectives.

The second is straightforwardness to utilize: the easier it is to utilize an internet site, the more it
contributes trust among shoppers. The authors imply that it ought not to be hard for buyers to utilize
the website as well as it ought to be simple for shoppers to utilize the webpage in any time and in
many ways. For instance it should be easy to discover the items that they need to purchase, to have
entry and discover the information effectively. But, if an Internet site deludes the shoppers it comes
about into distrust among the purchasers.

The third basic component that influences trust is called kindness as well as cover variables,
which figures out whether the site demonstrations in way that matches the user`s best advantages.
The authors give a good example of this element that is the reliability of the information that is on the
Internet site. The authors imply that it is vital that the information on the internet site is completely
valid and it’s not impartial statements generally the internet site could lose believability among its
customers.

Capability is the 4th element, which describes the more ability the internet site`s proprietor
have, the more professional internet site gets to be. The authors imply that professional capacities and
searches for an internet site are critical, since the variable polished skill has a huge part in making
trust among buyers. They likewise imply that things like errors and broad utilization of animations
give a sentiment absence of professionalism, which decline the trust among buyers.

16
 The fifth basic component that influences trust wining internet business is honesty, which is
very sensitive and essential element regarding the buyers and that is the reason the authors imply that
this element ought to be viewed very seriously by sellers. It ought to be clear for the buyers that the
site considers the significance of integrity as well as ethical behavior, and customers ought not to be
worry about their security, personal information and identity. The authors likewise imply that the
information given by purchasers ought not to be abused by merchants at all, so as to make and keep
up trust among buyers.

Risk is the 6th basic component that must be oblivious for almost everybody. Everybody wants
to be secure while doing business of any sort. With regards to e-commerce, the readiness of dangers
taking gets just about zero. Concurring authors, the more hazardous to utilize a site, the more it
declines the trust among purchasers.

The 7th basic elements are called reputation, which is about the perspectives of individuals
about the site. Individuals could express their selves in various courses, for instance by examination
boards on internet site or their feedback given for the sites. The authors imply that the experience
they have from a site could be both positive and negative. It influences a plenty the reputation of the
sellers, and it could influences the trust among the customers both emphatically and contrarily
(Ofuonye, 2009)10

3.0 Current trends in Uzbekistan

A. Development of E-commerce in Uzbekistan

Worldwide improvement of modern information as well as communication innovations,

especially web technologies, has prompted a fast increment in economic activities of online business.
Thus, the fast improvement of online business and growth of its volume is followed by various
positive outcomes on worldwide trade. The essential accomplishments and consequences of the
extension of E-commerce in world exchange is, most importantly, the decrease of transaction costs,
trade aid, ability to attract investment, extend the geography as well as accessibility to take a part in
the business, expanding competition.

For Uzbekistan the presentation of modern information innovations is one of the key elements
that can give upgrade of Uzbek business accommodation in world trade as well as make contribute to
the manageable economic development of the economy over the long term period. Moreover, the first
President of Uzbekistan I.A.Karimov at the session of the Cabinet of Ministers highlighted that, “…
becomes more and more popular among the population modern high-tech services, such as mobile

10
Ofuonye, E. (2009). How do we build trust into e-commerce Web sites? IEEE Software, 7.9.
17
phone services, high speed internet, cable TV connection, remote banking services” 11. Execution of
these procedures is just conceivable make particular legal as well as financial conditions are
established for the effective working of e-retailing. In addition, in our country, the initial steps in the
lawful control of e-commerce have been made.

This is the list of current legislations of the Republic of Uzbekistan12

1) "On Telecommunication" from 13.01.1992

2) "On information" from 05.07.1993

3) "On Copyright and related Rights" from 30.08.1996

4) "On guarantees and free access to information" from 24.04.1997

5) "On Telecommunications" from 20.08.1999

6) "On postal communication" from 31.08.2000

7) "On Electronic digital signature" from 11.12.2003

8) "On Electronic commerce" from 11.12.2003

9) "On Electronic document circulation" from 29.04.2004

These regulations constituted the essential idea of e-commerce on the members, and the rules of e-
business.

Given the significance of the role of ICT for economic advancement and enhance the welfare in
2013 a coordinated program for the improvement of national information as well as communication
frameworks of the Republic of Uzbekistan was accepted for the period of 2013 2020 years. As a
component of this program programmed phone exchanges from “analog system” to “digital system”,
increased the speed of IIN (international information networks) system. Execution of this program
added to increase in the country`s Internet data transmission to more than four times and speed of
access to 1.5 times. Therefore it has prompted an expansion in the quantity of Web users, which at
the present time stands at more than 10.3 million individuals, or 33% of the whole populace.

11
The development of the communications, information and telecommunication technologies is given special attention –
available on http://www.rtmc.uz/index.php?option=com_content&view=article&id=608:the-development-of-the-
communications-information-and-telecommunication-technologies-is-given-special-
attention&catid=8&Itemid=102&lang=en

12
These legislations retrieved from www.lex.uz
18
 Additionally, it decreased the cost of the Internet contrasted with the earlier year by 11.8 per cent,
which prompts expanded use of e-commerce services (Katune, 2015)13

It ought to be taken into account that online business is improving at various speed in different
areas of the economy. Financial sphere, for example, effectively works as well as majority of
documents to state organizations are submitted in E-forms. This type of e-commerce is additionally
broadly developed in Uzbekistan. Providing business services by banks through the Web is
increasing quickly and its prominence among economic specialists has unfaltering development.
Number of clients of distance banking services has expanded by more than 20 times, and the services
of Web banking and mobile banking in the most recent five years likewise expanded more than 21
times. These figures again affirm the way that today the number of individuals in Uzbekistan has
effectively shaped a solid interest for an assortment of innovations in the field of E-business.
Nonetheless, it ought to be noticed that today in Uzbekistan electronic payments through plastic cards
is not broadly utilized, as these cards that populace have (Katune).

According to LeBazar.uz people who are living in Uzbekistan are not so interested in online
shopping. There are 13 million individuals who have online-cards and only 500.000 individuals who
use their online-card for making online purchase, but it’s less than 4% out of all. Moreover, 250.000
active users of online-card are registered in the mobile banking. It means that, about 96% users of
online-card are not using their card appropriately, prefer to make offline shopping14.

An analysis of working routine of E-commerce in world demonstrates the presence of various

particular elements related with its utilization:

I. Firstly, the absence of geographical boundaries, which without a doubt decides an issue with the
definition of the tax jurisdictions in regard of cross-border transactions:

II. Secondly, the uncertainty of the members and absence of technical possibilities to identify the
name and location of the subject on the base of its IP-address:

III. Thirdly, decreasing the share of middle class working people.

These particular features of e-business one more time increment the importance of the
investigation of this field, since its development and unlimited functioning predetermines event of
different risks and challenges both for Uzbekistan and for whole world trade.

13
Katune. “The benefits of e-commerce in Uzbekistan”. retrieved from CER.uz: http://transformation.cer.uc/2015/12/the-
benefits-of-e-commerce-in-uzbekistan/

14
LeBazar.uz is a new platform of E-commerce in Uzbekistan - http://www.afisha.uz/techno/2017/02/01/lebazar/
19
 In the course of recent years, the quantity of transactions directed through the Web has
extended exponentially, and numerous governments have begun to consider the potential large
impacts of e-commerce can have on their tax income base. It ought to be considered that the yearly e-
commerce is two times higher than the growth rate of traditional trade.

Pursuant to world statistics, the quantity of Web users has tripled since 2005, from 1.2 billion
to 4-billion users in 2016, which is over 50% of the total populace, which implies that consistently a
world e-shopping market is increasing, and the list of top ten nations with the biggest turnover of
online business incorporates the South Korea, Japan, U.S.A, China, Russia, Canada, UK, Germany,
France and Australia. Huge amount of the world`s retail e-business infrastructure is controlled by US
organizations, for example, Google, Amazon, e-Bay services et cetera. Nevertheless, the most
noteworthy growth rate followed in the less developed countries, for example, Russia, India, China,
Argentina and Indonesia.

In the period of main changes in the economy it is important to adjust certain manners and
instruments of state impact on online business. One of the fundamental apparatuses for state to
manage the e-commerce might be an ideal formation of the state strategy in the field of tax
assessment. The successful execution and improvement of e-retailing in Uzbek economy at the initial
stage should enable cooperation among country and financial establishments alongside business
entities. In any case, it ought to be noticed that another essential part of the extra impulse of e-
commerce on the social field in our country is virtualization of the labor market, which will add to
the improvement of the distant employment, progressively changing its structure. It can prompt to a
growth in virtual portability of the populace and the decrease of territorial disparities.

B. Payment methods in Uzbekistan

After presentation of law "On electronic payments" in 2005, the traditional way for making
payments and serving customers is distinctly subject of discourse. A few organizations attempted to
make a development in this sphere and a few electronic payments strategies like "Paynet" were
presented15. The principle reason for these organizations was to make the system through which
individuals can make quick and simple payments for their daily expenses. As a matter of fact,
payments for mobile services, web providers, personal bills, internet shopping markets and also bills
for gas and electricity became accessible, which turn into a gigantic surge towards new arrangement
of payments in light of convenience and comfort. Advancement of payments strategies is entirely
related with the improvement of web in Uzbekistan. New innovations like "optic fiber" cables and
wireless connection came into the action in last 6 years. Some time recently, the primary web

15
“Paynet holds seminar on development of payment technologies in Uzbekistan” – available on
https://www.uzdaily.com/articles-id-1803.htm
20
connection was low speed "dial-up", having serious discomfort utilizing telephone line, and "ADSL".
Moreover, mobile internet was additionally not improved as there was no interest for this. Presently,
when the web is used by each third individual in Uzbekistan, demand for e-payments gets to be
distinctly important (Uzcard, 2014)16.

In Uzbekistan, because of presentation of system “Uzcard” a few projects made accessible

payments utilizing cell phones and PCs at any place as well as at any time. Online administrations for
making payments online, for example, SMS Tolov, Click, Upay, Uzcard, and MBank are accessible.
The greatest point of interest of this software is total control over that exchange procedure. That is to
say that, some of the software has inbuilt elements of checking the balance and accessible subsidizes
in record of cardholder, the history list of last exchanges and online associates ready to offer support.
In addition, there are web stores as Arba.uz, LeBazar.uz, Uzbekmarket.uz, esavdo.uz for making on
the web purchases. Different items can be purchased on these sites including, stationary, clothes,
services and food, larger part of them have delivery service. The fundamental currency used to make
payments is national currency of Uzbekistan - Sum17. Nevertheless, some local web stores take
international currencies too (Uzcard, 2014).

4.0 Research methodology

A. Methodology choice

The goal of the paper was to examine to what extent a few theories concerning e-business are
true for Uzbekistan. To begin with, I attempted to discover fundamental elements that build up trust
customer`s mind. After that, it was imperative to establish which of these components has the biggest
impact on consumer`s conduct. So, the goal of this project was not to build any brand new model or
theory. As a means to explore relevant trust building components distinctive sources and literatures
were examined so as to locate the main considerations of trust building, this later filled in as a manual
for this empirical research. By empirical research I attempted to examine the significance of specific
components for purchasers while doing online purchasing. Moreover, the method of survey was
utilized to accumulate data, as it was the most suitable method to collect data in brief timeframe, and
gathered data was a similar sort that permitted making statistical manipulations. Furthermore, all
questions provided in this questionnaire were related to online business field in Uzbekistan all in all,
not to specific vendor.

B. Research strategy

16
Uzcard (2014). UZCARD: E-COMMERCE IN UZBEKISTAN. retrieved from Uzcard.uz:
http://uzcard.uz/index.php/en/component/k2/item/108-uzcard-e-commerce-iz-uzbekistan

17
Uzbekistan Currency - Uzbek Sum – UZS - http://www.advantour.com/uzbekistan/currency.htm
21
 There are assortments of research procedures to select among, for instance, survey, case study
as well experiment. In this dissertation we selected to utilize a survey as my research strategy. As
indicated by Saunders et al. (2007), this kind of strategy is frequently associated with the deductive
approach, which is the approach have been embraced. A deductive approach is the point at which you
recognize theories and ideas utilizing the literature, which you then will test by utilizing information.
In other words it implies testing theory (Saunders, Lewis & Thornhill, 2007)18. In order to reach the
purpose of the study I have picked deductive method by reviewing literature as well as identifying
theories first, and after that testing them through data. For this situation, I have utilized quantitative
information to check the importance of hypotheses and meet the motivation behind my exposition.

Research purpose can be arranged in three diverse ways, namely, exploratory, descriptive as
well as explanatory. The dissertation was observed to be a mix between an exploratory and
descriptive study. The point of an exploratory review is to discover what is occurring; you look for
new insight; you ask inquiries as well as see phenomena in new light. It is helpful when you wish to
elucidate your comprehension of an issue. One approach to direct this sort of study is a research of
the literature. Moreover, a descriptive study is when the dissertation maker needs to have accurate
conception of the phenomena, to gather data about, preceding the actual accumulation of the data
(Saunders et al., 2007).

Among accessible methodologies for me to pick were experiment, interviews and survey. For
the deductive approach the most appropriate one was the survey, via which it’s easy to get access to
quantitative data. The privilege of survey is that it permits gathering vast quantity of data frame
diverse age groups. Gathered data is standardized as it is gathered utilizing questionnaire. This
permits making comparisons as well as reviewing data quantitatively. Pair to this reason, the survey
was selected as a primary instrument of collecting data.

The aim of this dissertation is equally exploratory as well as descriptive, due to the fact that I
attempted to discover what is going on, take a gander at new insights as well as see the circumstance
in alternate points of view. It is valuable while attempting to make clarification on issue or problem
and this is primarily done through literature review.

C. Data collection

1. Secondary Data
18
Saunder, M., Lewis, P. & Thornhill, A. (2007). Research, Methods for Business Students. 4th ed. England: FT Prentice
Hall.
22
 Different sources of secondary data were utilized including journal articles, books, web sources
as well as research papers. Moreover, the literature that was found trust building issues in Uzbekistan
was in English, Russia and Uzbek languages to make a maximum accurate and significant conception
of current circumstance. As background information it was incorporated the development of Uzbek
e-business in last decades. Another essential element that ought to be noted is the comprehension of
trust, which is thusly ordered differently in various conditions.

2. Primary Data

The primary data was gathered utilizing questionnaires. The questionnaire were outlined in a
way which permits distinguishing the demographic characteristics of respondents as well as
collecting data on components that makes them to take part in internet shopping (Saunders et al.,
2007). Components that were found in literature review were distinctly base for these questionnaires.
For the most part, the trust building elements are recognized by various e-commerce sellers by
making online surveys on their internet site, but distinguishing part of the given questionnaire was
including not particular web site but rather the entire sphere of e-commerce. Moreover, the
respondent`s demographics were likewise different. I attempted to distribute the questionnaires
among various age bunches, beginning from 18 years old and older. The quantity of respondents was
240 individuals, and questionnaires were distributed in equal sum for males and females. The
respondents were from Tashkent city and two major Tashkent regions (to be specific Chirchiq and
Qibray). Gathered outcomes I was analyzed utilizing statistic software called SPSS.

3. Selection Method

I used convenience sampling as our determination strategy. Convenience sampling implies that
you select just those respondents that are ready to take a part in the survey, after being asked
(Christensen, Andersson, Carlsson & Haglund, 2001). Typically, this includes selecting those cases
which are most effortless to gain to the sample. The determination procedure proceeds until the
required sample size is reached (Saunders et al., 2007). In our case, questionnaires were given to
those individuals who weren`t in a hurry and had time to answer. To make information more
productive just individuals who could answer the inquiries were furnished with questionnaires. The
survey was held in four various areas, giving more emphasis on entertaining as well as amusement
places.

4. Questionnaire Design

23
 Discussing about design of questionnaire, as Saunders et al (2007) highlighted, there are
various kind of questions to utilize, depending on which kind of data he/she wants to gather. I can
point that initial four question were for elucidation of background of respondents. Every single
included question was categorized as well as supposed to select just one option. Questions one and
two were about gender and age, while question number three was about respondent`s opinion on
making buys online and inquiries number 4, 5 and 6 were about Arba.uz and LeBazar.uz. Question 7
is about how regularly he or she utilizes e-commerce. Beginning from question 8, more specific
information regarding trust setting up variables in some sense reviewed section 2. For these inquiries,
Likert-style rating scale was utilized to discover how shoppers see the significance of each said
factor. For each question a similar five options, beginning from "Not at all important" to "Very
important", were furnished along with option "None of the above". As all questions were closed
inquiries, it was easier for respondents to fill the questionnaire and further examination of
information turned out to be more effective. Every question was in Uzbek and Russian languages as
majority individuals in Uzbekistan utilize these languages to communicate. Nevertheless, the English
version of questionnaire is available on this link goo.gl/lyRbnb and the hard copy is given at figure 1
(See appendix).

5. Validity

The way toward planning questions was accompanied by unimportant uncertainty concerning
the validity of the questions. Validity is “concerned with whether the findings are really about what
they appear to be about” (Saunders et al., 2007, p.150). The questions could be interpreted
differently by respondents, but it was essential to develop the ones which are clear for respondents
and in the meantime answer the primary research questions. Each questionnaire was anonymous and
respondents were asked to reveal their own opinions, which mean most likely the appropriate
responses were obtained.

In addition, the survey was held in most developed city of Uzbekistan in Tashkent and regions
around capital, which implies that result of this examination, can be controversial while applying to
different urban areas. Plus, the main reason for the survey was to distinguish particular issues of trust
building to make the relationship between companies more steady and trustworthy.

Utilizing questionnaire had both plus and minus sides. The benefit of utilizing it was the chance
to assemble information rapidly. The respondents answered a similar group of questions and it
permitted to delineate information in numbers and quantities. The disadvantage of questionnaires was
that diverse individuals interpreted the questions in their own particular way and even for a few
respondents understanding the question in the same way was difficult.

24
 5.0 Data analysis and findings

The primary data was collected conducting survey as well as using questionnaire. Moreover,
all eight questions are based on the reviewed literature as well as designed to understand the basic
trust establishing factors amid customers. 240 individuals participated in this survey, and the amount
of all genders is equal. Above mentioned questionnaire may be found in figure 1 (See appendix)

A. Questionnaire data

The purpose of questions from 1 to 8 was to provide background information about

respondent’s gender, age, online purchase behavior, knowing Uzbek e-commerce websites, from
where they heard about online shopping websites, how they feel after making purchase in these
websites, frequency of purchases, as well as the essential factors establishing trust. Below the results
of these questions are presented.

Question 1 – Gender

Table A - illustrates the number of participants by gender

Quantity Per cent Valid per cent

Male 120 50 50

Female 120 50 50

Total 240 100 100

As can be seen, the number of men and women involved in survey are identical. Due to the fact
that our survey was held within the weekends, it was feasible to gather equal quantity of
participators.

Question 2 – Age

Table B – shows the rate of respondents according to their age. So, it was essential to compare online
buying habits of various age groups as well as find out to what extent they differ from each other.

Age group Quantity Per cent Valid per cent

18-29 112 46.6 46.6

30-39 76 31.6 31.6

40-49 38 15.8 15.8

25
 50-59 12 5 5

60+ 2 0.8 0.8

Total 240 100 100

After collecting the age group and putted it into table form, it’s clear that almost half of
respondents are representatives of 18-29 age group and followed by 30-39 age group with 76 people.
Moreover, in group aged from 40-59 there were 38 people. Unexpectedly, there was two individual
who was above 60 and participated in our survey, but other individuals who were above 60 refused
to answer when they heard the word Internet.

Question 3 – Your attitude towards internet and making purchases, through online
shopping markets

The table below illustrates the attitude of participants to e-shopping. In the second question there
were given 3-options such as – Positive, Negative and None of the above. This question basically explained
to what extent the web is accepted as new field to make shopping.

Attitude towards Quantity Per cent Valid per cent

internet

Positive 122 50.8 50.8

Negative 52 21.6 21.6

None of the 66 27.5 27.5

above

Total 240 100 100

As can be seen, more than half of the respondents have a positive attitude towards web and e-
commerce. So the rest of the respondents have a negative attitude (52) or either have a no opinion
(66) about it. However, it can be underlined that majority of individuals who have a positive attitude
towards the web and e-shopping were from the age group of 18-29. 50.8 % means that internet
become a comfortable and effective place to making shopping.

Question 4 – Have you heard about Arba.uz and Lebazar.uz

26
 The following table represents the Uzbek local e-commerce websites, such as Arba.uz which
works from 2015 as well as Lebazar.uz which operates from 2016. So there were given questions
about being familiar with these websites

Knowing about Quantity Per cent Valid per cent

Arba.uz and
Lebazar.uz

Yes 86 35.8 35.8

No 154 64.1 64.1

Total 240 100 100

It was predictable that more than half of the respondents may never heard about these e-
commerce websites, due to the fact that they were still new and not promoted well. However 35.8 %
of all total ticked “Yes” which illustrated that the situation is not critical and slowly individuals start
visit and make purchases at these websites.

Question 5 – From where do you heard about Arba.uz or Lebazar.uz

This table demonstrated, 5-important sources where Uzbekistan individuals may be informed
about e-commerce Uzbek businesses and where companies may put its commercials for some
amount of payment.

Sources Quantity Per cent Valid per cent

Television 33 13.7 13.7

Radio 14 5.8 5.8

Newspaper 8 3.3 3.3

Internet 21 8.7 8.7

Billboard 5 2 2

None of the 5 2 2
above

Total 86 35.8 35.8

27
 All respondents filled up this field, and as can be seen television with 33 is the leading sphere
to inform individuals about online shopping markets, the next is internet (21) and 32 individuals
ticked other sources from the questionnaire.

Question 6 – Are you satisfied or dissatisfied after making a purchase in Arba.uz or

Lebazar.uz

The sixth table shows about post-purchase in Arba.uz and Lebazar.uz and there were given 3-
steps for tick such as “satisfied”, “neutral”, and “dissatisfied” for individuals to express their feelings after a
purchase.

Post-purchase Quantity Per cent Valid per cent

Satisfied 31 12.9 12.9

Neutral 45 18.7 18.7

Dissatisfied 10 4.1 4.1

Total 86 35.8 35.8

One of the basic factors of the business is it satisfied customer`s needs. Suddenly, only 31 out
of 86 respondents feel themselves satisfied, its means that still there are more dissatisfaction and
distrust in Uzbek e-commerce. Moreover, 45 participants ticked neutral and only 10 participants
dissatisfied. Individuals from age group 18-29 were more satisfied, but elder age groups showed the
vice verse results.

Question 7 – How often do you make purchases on the internet

In this table, frequency of making e-commerce by is individuals revealed. By looking at the

results of this question some sum ups regarding the past online shopping experience of buyers can be
made.

Frequency of Quantity Per cent Valid per cent

purchases

1-2 times per 30 12.5 18

week

More than 2- 20 8.3 8.3

times per week

28
 1-2 times per 60 25 25
month

More than 2- 40 16.6 16.6

times per month

Never 90 37.5 37.5

Total 240 100 100

More than half of the respondents have experienced of purchasing online. However, 37.5% of
participant individuals have never make a purchase via online shopping websites.

Question 8 – What are the essential factors to established trust, when you make purchase
through online shopping websites?

As it was said above, customer should feel trust before participating in payment transaction
process. So the 8th question was the main question in this questionnaire, to provide an answer to the
second research question. Moreover, the main elements included in questionnaire, overviewed
theoretical part of this dissertation.

The following are the basic elements ascertaining trust

1. Customer service

2. Control

3. Familiarity

4. Guarantees

5. Information

6. Price

7. Privacy

8. Security

9. The website

In the tables below, there will be showed the completed answers of all respondents on question
#8 in alphabetical order.

29
 1. Customer service

This table shows the result on how customers service as well as ability to get support directly on
website is essential.

Customer Quantity Per cent Valid per cent

service

Not at all 18 7.5 7.5

important

Somewhat 36 15 15
important

Important 62 25.8 25.8

Very important 98 40.8 40.8

None of the 26 10.8 10.8

above

Total 240 100 100

As can be seen in this table, if we gather the percentages of “important” and “very important”
it`s illustrated 66.66 % out of 100 %, it means that more than half of respondents support a good
service is important for them. Unfortunately, 26 respondents (10.8%) have no opinion. Females from
30-39 age groups preferred to tick very important option.

2. Control

The table below presents how control is essential for individuals to ascertain trust owing to web.

Control Quantity Per cent Valid per cent

Not at all 10 4.1 4.1

important

Somewhat 18 7.5 7.5

important

Important 100 41.6 41.6

Very important 110 45.8 45.8

None of the 2 0.8 0.8

above

Total 240 100 100

30
 In this table the percentages of “none of the above” showed only 0.8 % and 110 respondents
though that it’s important for them that mean that they feel free while using the web and also new
control system is a barrier for people to build trust.

3. Familiarity

This table demonstrates the role of reputation, brand as well as recommendations in ascertaining trust
in online shopping.

Familiarity Quantity Per cent Valid per cent

Not at all 26 10.8 10.8

important

Somewhat 4 1.6 1.6

important

Important 94 39.1 39.1

Very important 90 37.5 37.5

None of the 26 10.8 10.8

above

Total 240 100 100

After analyzing the table, it can be mentioned that for individuals acquainted brand or advice
from their acquaintances is essential enough.

4. Guarantees

The table below illustrates how guarantees are essential for customer.

Control Quantity Per cent Valid per cent

Not at all 0 0 0
important

Somewhat 2 0.8 0.8

important

Important 96 40 40

31
 Very important 142 59.1 59.1

None of the 0 0 0
above

Total 240 100 100

Suddenly, “none of above” and “not at all important” options showed 0%, due to the fact that
each respondent have a clear view that guarantees are very important.

5. Information

The table below shows the participants concern that information on firm is available on internet.

Information Quantity Per cent Valid per cent

Not at all 6 2.5 2.5

important

Somewhat 18 7.5 7.5

important

Important 132 55 55

Very important 78 35.5 35.5

None of the 6 2.5 2.5

above

Total 240 100 100

From this table it is clear that company`s history and extra information about the website
functioning is essential for respondents in our questionnaire.

6. Price

This table illustrates how price is important for consumers on website.

Price Quantity Per cent Valid per cent

Not at all 4 1.6 1.6

important

Somewhat 4 1.6 1.6

important

Important 62 25.8 25.8

32
 Very important 156 65 65

None of the 14 5.8 5.8

above

Total 240 100 100

For this factor it was predictable that majority of respondents choose “Very important” option
which demonstrates 65% and is considerable for the customers while choosing online-retailing store.
So, it means that from these analyzed results the local e-commerce companies may use some
strategies such as discounts or bonuses in order to focus on consumer`s trust.

7. Privacy

This table collected the data on individuals` knowledge about how their personal information filled on
website is treated.

Privacy Quantity Per cent Valid per cent

Not at all 30 12.5 12.5

important

Somewhat 64 26.6 26.6

important

Important 22 9.1 9.1

Very important 68 28.3 28.3

None of the 56 23.3 23.3

above

Total 240 100 100

Surprisingly results showed that many people which participated didn`t feel the privacy of the
information as an essential factor. The reason of this is that each credit card is supervised by local
bank and it means that it’s almost impossible to commit an online fraud.

8. Security

This table illustrates the significant role of security on making online buying procedures.

A. Security on payment systems

33
 Security Quantity Per cent Valid per cent

Not at all 2 0.8 0.8

important

Somewhat 22 9.1 9.1

important

Important 54 22.5 22.5

Very important 162 67.5 67.5

None of the 0 0 0
above

Total 240 100 100

From this table it is evident that, three out of four quarters of respondents underline the high
significance of secure as well as reliable local payment system.

B. Various payment methods

In this table with the word “payment methods” I included cash, credit card as well as COD.

Security Quantity Per cent Valid per cent

Not at all 8 3.3 3.3

important

Somewhat 20 8.3 8.3

important

Important 64 26.6 26.6

Very important 118 49.1 49.1

None of the 30 12.5 12.5

above

Total 240 100 100

More than half of the respondents accentuated the major significance of different payment
methods to ascertain trust, while 12.5 % of respondents claimed that they have not any opinion.

9. The web

The tables below show the results of how our local websites can set up trust using various tools
34
 Table #1

Design Quantity Per cent Valid per cent

Not at all 2 0.8 0.8

important

Somewhat 96 40 40
important

Important 82 34.1 34.1

Very important 56 23.3 23.3

None of the 4 1.6 1.6

above

Total 240 100 100

Table #2

Functionality Quantity Per cent Valid per cent

Not at all 0 0 0
important

Somewhat 8 3.3 3.3

important

Important 98 40.8 40.8

Very important 124 51.6 51.6

None of the 10 4.1 4.1

above

Total 240 100 100

After analyzing both tables the final conclusion is that, for users functional ability of internet
site is more essential rather than design.

C. Findings

35
Outcomes from above mentioned questionnaire revealed general facts, challenges, as well as possible
solutions to increase the level of trust on local online shopping markets.

Analysis results of the survey

After analyzing the results, some question`s results were unexpected and I was surprised.
Question number four about knows those two websites which were mentioned above are predictable
due to fact that Arba.uz and LeBazar.uz are still start-up projects and respondents ticked “No” more
often. On the other hand, in Uzbekistan one of the best promotion sources and advertising spheres are
TV and Internet, as was proved by our respondents.

In the reports of other countries, security and privacy are the basic factors for individuals to
rely on vender while making purchase online. However, after getting the results, it was clear that
such factors as guarantees, price, and payment methods of the website, control, and functionality are
more important for local customers than privacy issues. So the reason of this is in Uzbekistan is the
ignorance of the importance when the customer register on online store or when he/she makes online
payment ,privacy issues which are given on internet sites. The second reason of this is included into
literature review was connected with changes of individuals perception after making their first online
transaction which leads to this kind of low privacy trust.

The Bar chart below shows the highest percentages of 3 trust types out of 5-basic options

Furthermore, after reading and reviewing literature it was found out that modern technology
plays a huge role in establishing trust amid consumers. In today`s world, modern and high
technologies are the factor that each start-up and running business should examine.

36
 According to respondent`s answers, the appearance of the online shopping website is less
essential than its functionality. Expressed in a different way, the more useful tools for customers
vender offers, the more trust it obtains. On the other hand, the attractiveness of the e-commerce
internet site was one of the inessential elements as against functionality or security.

6.0 Conclusion

Results of this study provide view of trust relationship between Uzbek online shopping markets
and customers. The main reason why customers not buy from the online stores is the absence of trust
which is an important tool for transaction to happen. Trust is very hard to identify it, depends of the
individual`s background, expectations and experience.

Possible danger of stagnation in development of online shopping market in Uzbekistan is very

high. Physical clues in the traditional shopping store and the direct contact with deals persons given
chance to influence customers’ feeling of trust. But, the lack of physical interaction in the online
surroundings makes it very difficult to set up trust with the customer. Anonymity and absence of
physical connections may bring a big problem for the companies which are engaged in e-business.
This work tried to discover the main factors that must aid to set up trust in e-commerce. Building a
survey in a form of structured questionnaire was chosen as the most suitable method in order to get a
clear respondent’s opinion. The questionnaire collected data about how buyers feel the significance
of various trust components. All questions which in the questionnaire sheet were built on the factors
found in the literature review.

Online shopping stores are not ready to control the trust their buyers feel. The companies
should assemble environments that support individuals to feel trust. Following variables are critical
for setting up customer trust in the internet shopping environment. For our respondents’ price, design
of the website, security, guarantees and control factors are the essential ones. Another factor that
prevents customers to engage in e-commerce is the relatively short existence of this market, which
means not correctly organized logistic system. From customer trust in e-commerce sphere following
particular elements that guided empirical research significance of the chosen components, to build
trust to buy online.

Results reveal that there are a number of components which were mentioned in literature
review that aid to set up trust, which are applicable for the consumers when buying online. Moreover,
I found out which elements are essential for setting up trust rely to some degree on the present
circumstances as well as customers` concerns at that time. In addition, security as well as privacy
issues are frequently seen as obstructions to online shopping. At the end of this survey it was clear
that such factors as security and privacy, showed high rate on the option named “Very important”.

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This survey has illustrated that security and privacy are the key elements for the customers to
establish trust in order to purchase online. Furthermore, after analyzing both tables the final
conclusion is that, for users functional ability of internet site is more essential rather than design. To
sum up, the main goal of this dissertation was to gain a better understanding of customer trust in e-
commerce. In online-business, the Web merchants` internet sites should have trust-building channels.
That’s why, for our local e-commerce companies it’s essential to find how to deal with customer’s
trust in e-business. This finding obtained in the period of research can be useful to such online
trading firms as Arba.uz, LeBazar.uz, e-Savdo.uz, and etc.

7.0 Appendix

Figure 1 - Gantt chart of research

38
 Task Person Jan Jan Jan Jan Feb Feb Feb Mar Mar Mar Mar April April
Responsible 10- 19- 26- 28- 1-15 15- 17- 1-15 15- 17- 25- 1-3 3-15
19 26 28 31 17 28 17 25 30
Final decision Me
about the
topic
Background Me
reading
Supervisor Supervisor
sessions and me
Literature Me
review
Research Me
method
planning
Preparing Me
questionnaire
Choosing Me
participants
Calculating Me
survey results
Data analysis ME
Show Supervisor
Supervisor and me
some piece of
work
Discuss Supervisor
conclusions and me
Further drafts Me
Final meetings Supervisor
and me
Final re-check
and submission

Figure 2 - Questionnaire sample empty (cont) in English language

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40
41
42
43
44
45
Figure 3 – Questionnaire sample filled in Uzbek language

46
Figure 4 - Questionnaire sample filled in Uzbek language

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Figure 5 – Types of questionnaire

Source: © Mark Saunders, Philip Lewis and Adrian Thornhill (2008)

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 8.0 Reference

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