CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background of the Study

E commerce refers to the buying and selling of goods and services over the internet. The UNCTAD (2021) defines e commerce as the buying and selling of goods and services, the transmitting of funds, or data and digital delivery of products or services over the internet and through other computer based systems. This definition was recognized by the WEF (2021) . Trust refers to the belief and confidence one has in another person or entity to act in a reliable, honest, and competent manner. Trust has a great relationship with e commerce in general. Professor Rachel Botsman defines trust as a confidence in the reliability, truth, ability and strength of someone or something (2021). This definition was recognized by WEF.

People purchase products and services are the most based on their level of trust in this product or services, and sellers either in the physical store or online shops. Online trust is the basic and essential element for building a relationship with. shows that trustworthiness of Internet merchant (perceived integrity, perceived competence, and perceived security control) and external environment (third-party recognition and legal framework) have considerable impact on consumer trust in Internet shopping (see figure 1). The trustworthiness of E-commerce web site is very relying on the how much privacy security can be provided. For example, when companies are honest and upfront about their products service and policies customers trust are more likely to increase Dr John smith (2021). As mentioned above that the web merchant can provide third-party verification to E- commerce web site, and while this privacy and security strategies are used, customers will think their E-commerce transactions through Internet are secure and thus the site is more reliable to them. Beside this point, if the Ecommerce web site can provide the information about their customer services, location of the office and personalization by Nitin Bhardway (2019) will greatly increase trust.

Consumer desires and characteristics determine the parameters of a good marketing strategy in the modern era, making the consumer the cornerstone of successful marketing activity. As a result, one of the most important marketing activities in the organization is the study and analysis of consumer behaviour, which has resulted from changes in the external environment due to the intensification of competition and the expansion of the size and type of alternatives available to the consumer on the one hand, and the change and diversity of his needs and desires on the other.

Consumer behaviour research is a relatively new and complex field. It outlines and defines the pattern that the consumer follows in his behaviour when searching for, purchasing, or evaluating the goods or services that he expects to satisfy his needs and desires.

The tremendous technological progress that the globe witnessed in the latter half of the twentieth century resulted in significant scientific and technological advancement. It also aided in the development of many modern apps and marketing operations, as well as having a big impact on the process of connecting businesses to electronic networks, resulting in a highly interconnected cell and changing the nature of all consumers’ economic patterns. (Al-Kunduz, 2017). The information and knowledge era is witnessing a huge transformation in

information and communication technologies, which has resulted in a fundamental shift in the thinking patterns and behaviour of both producers and commerce is regarded as one of the most significant global developments that has imposed itself strongly over the last ten years, and it has since become one of the pillars of the new economic system that focuses on the simultaneous use of the Internet and e-commerce. The Internet’s emergence as one of the most important modern communication technologies has greatly aided the promotion and growth of e-commerce, and business organizations have recognized the value of e-commerce in increasing competitiveness, marketing products and services, and providing instant information to customers and consumers. (Chiao& Connie, 2016). On the other hand, the world today is witnessing a qualitative shift from the monetary to the non-monetary economy, owing to financial technology services that have been able to bring about fundamental changes in the financial services sector, where financial technology provides services to many individuals and businesses in quicker, easier, and less expensive ways than traditional means. Financial technologyhas the potential to make a significant contribution to financial stability, as well as to shape the future of financial activities and services. Also P.k Chandhary and R.K dharma (2020) .

1.2 Problem Statement

The main problem addressed by this study is the effect of e-commerce on customers’ retention in Bamenda. Due to advancement in technology, online marketing has been one of the easiest markets since it is much easier to find a product and make a link with the supplier even at the convenience of our home. However, despite these advantages, some consumers have negative attitude towards buying online for the following reasons; first and foremost, fosters and scammers takes advantage of online shop to project products that they do not have aimed at scamming consumers. So too, the price of the products sales online plus cost of delivery are usually higher than the actual onsite market price. Another challenge of online purchase is the quality of the products. At times, there exist a great gap between the projected quality and the actual quality of the products delivered. Another challenge of online purchase is timely delivering as some of the products may only arrived after the main reason for its purchase has past. It is based on these setbacks that the researcher wishes to investigate the effect of e-commerce on customer’s retention in Bamenda II and III Councils areas.

1.3 Research Questions

1.3.1 Main Research Question

What is the effect of e-commerce on customer’s retention in Bamenda II and III Councils areas?

1.3.2. Specific research questions

1. What is the effect of product catalog on customers retention in Bamenda II and III council areas?
2. What is the effect of online storefronts on customers retention in Bamenda II and III council areas?

• What is the effect of payement gateaway on customers retention in Bamenda II and III council areas?

1.4 Research objective

1.4.1 Main research objective

The main objective of this study was to investigate the effects of e commerce on customer’s retention in bamenda ii and iii council areas

1.4.2 specific objectives

1. To investigate the effects of product catalog on customers retention in Bamenda II and III council areas
2. To assess the effect of online storefronts on customers retention in Bamenda II and III council areas.

• To find out the effects of payment gateway on customers retention in Bamenda II and III council areas.