E-COMMERCE BEHAVIOR

E-Commerce Behavior

E-Commerce Behavior

Customer E-Commerce Behavior

Introduction

The popularity of the internet and growth of e-commerce has transformed the way that companies conduct business. E-commerce has made it possible for companies around the world to participate in the global marketplace using the internet. Although the internet has made it easy for companies around the world to expand into new markets, many risks await individuals who participate in e-commerce. According to McAfee Inc., an internet security company, new threats are constantly arising on the internet that make consumers vulnerable to becoming victims of cyber crime (Fox, 2000, 209-212)

E-commerce consumer behaviour

Aside from security issues companies and consumers need to consider legal, ethical and regulatory issues when participating in global e-commerce. This paper will look at how three internet companies are dealing with these issues and how they handle confidential data collected about consumers while conducting business to consumer transactions over the internet (Schiffman, 2001, 85-258).

Discussion

Borders

Borders is concerned with the security of personal information, but openly states that perfect security is nonexistent for web based transactions. The fact is that numerous risks exist in e-commerce. Consumer's personal information is stored in a database controlled by Borders or its service provider. While Borders security measures are consistent with industry standards, which include firewalls and encryption technology the company does not guarantee the security of its databases. Unfortunately, there are no perfect security solutions available for online transactions. A final item under security is the confidentiality of passwords. Borders states very clearly the consumer is solely responsible for this as well as for all activities conducted under the consumer's account. By stating these items, Borders can limit its liability in the event that site security is breached (Fox, 2000, 209-212).

Under the terms of use section, Borders provides a section regarding governing law. The terms are governed solely in accordance to the laws of Michigan (Jandos, 2004, 1-6). This section clearly states that the terms do not comply with the laws of any other country, and that users outside of the United States are responsible for understanding and complying with the laws of the country they reside in. When a consumer makes a purchase from a Borders web site, they must accept the terms of use, which in effect is the same as signing a contract that consumers in Michigan must abide by.

Amazon.com Legal IssuesAmazon.com offers a variety of products through their website. Merchandise that has adult content must be sold with the legal amount of information that Amazon.com has to give to consumers. Warranties that are sold by Amazon.com have to be legally binding, have disclaimers where they apply and written well for consumers to understand while making purchases online (Schiffman, 2001, 85-258). The terms of agreement for the sale of merchandise through this website have to be offered to consumers so that they have a good understanding of how this website works, the sale of merchandise and takes back returns for refund. Amazon.com has to be aware of patents from other companies, copyrights, and trademarks, ...