David Tjahjana, Diena Dwidienawati,

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,

DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

The Influence of Security and Privacy on Gen Z Trust in

Indonesian E-Commerce

DAVID TJAHJANA1, DIENA DWIDIENAWATI2,*, ADAM HAKIM2, ALFREDO RIVERA3,

NILSON TANDIONO3, YUDHA ARDIKA3
1
Universitas Multimedia Nusantara,
INDONESIA
2
Business Management, BINUS Business School Undergraduate Program,
Bina Nusantara University,
INDONESIA
3
Management, BINUS Business School Undergraduate Program,
Bina Nusantara University,
INDONESIA
*Corresponding Author

Abstract: - In the digital era, numerous organizations and businesses are attempting to influence teenagers to
make purchases of their products. In this context, a business needs to gain trust to attract customers in the
transaction process. This research aims to examine the relationship between the influences of Security and
Privacy on the Trust of Gen Z in Indonesian E-commerce. The research method employed is quantitative. This
study involves 400 respondents who are Gen Z consumers (born between 1997-2012) frequently engaging in
transactions through e-commerce platforms. The data processing utilized the Partial Least Square - Structural
Equation Model (PLS-SEM). The results indicate that Security and Privacy each have a positive and significant
influence on Trust.

Key-Words: - Security, Privacy, Trust, E-Commerce, Gen Z, Indonesia.

Received: March 19, 2023. Revised: January 23, 2024. Accepted: February 15, 2024. Published: March 15, 2024.

1 Introduction
Development and growth in E-Commerce have willingness to allocate substantial budgets for
been remarkable and rapid since Internet access online promotion. The development of online
became more widely available in the mid-1990s. In expenditures is facilitated by the availability of
2019, in the United States, the market share for E- information from online connections, online
Commerce reached 11.1%, experiencing a 5.8% recommendations, and various technologies that
increase from 2013, [1]. This percentage figure is help reduce existing risks associated with online
estimated to rise to 13.7% in 2021. Conversely, the transactions, [4]. Data obtained from the Central
market share for E-Commerce in Indonesia stands Statistics Agency (BPS), indicates that the total
at only 3% of total retail, [2]. Considering the population in Indonesia is projected to reach 275.77
behavior and preferences of Indonesian teenagers, million in 2022, with the Gen Z population
who exhibit a strong inclination towards online representing the largest segment at 24.2%, totaling
shopping, the E-Commerce sector in Indonesia is 66.74 million individuals.
poised for significant growth, [3]. Data from Trust plays a crucial role in all transactions due
Statista in 2023 indicates that the number of E- to uncertainties and risks inherent in these
Commerce users in Indonesia is projected to reach transactions. In E-Commerce, trust is pivotal and
196.47 million by 2023. In the current digital era, one of the most influential factors . Consumers are
the online realm has become a mandatory aspect unlikely to engage in online transactions if they do
for organizations and businesses. This is evident in not trust the seller, [5].
companies' endeavors to influence especially
teenagers to buy their products, with a

E-ISSN: 2224-2899 775 Volume 21, 2024

 David Tjahjana, Diena Dwidienawati,
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,
DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

In E-Commerce, trust is a belief that fosters platform. The stronger a platform is in safeguarding
consumer confidence and loyalty due to the consumer privacy, the more it can reduce their
positive behavior of the seller, [5]. The function of concerns, according to [12]. If customer privacy is
trust in E-Commerce transactions is to facilitate violated, customers tend not to use online shopping
business transactions between two parties with no platforms because they lose trust, [12].
prior experience in mutually beneficial dealings. Besides the need to confirm the relationship
Confidence not only reduces perceived risks but between security privacy to e-commerce trust, this
also enhances the perceived value or gain for study also wants to fill the gaps in the current
customers. Trust has a moderate effect on the literature on the topic particularly Gen Z in
process and behavior, [6] and can help reduce Indonesia. Moreover, there is still limited data in
anxiety, vulnerability, and uncertainty that may be current literature on the relationship of security and
caused by a transaction, resulting in greater privacy to trust in e-commerce.
satisfaction. Additionally, trust can create a positive
attitude toward transaction behavior, leading to
consumer intent to transact, [7], and is crucial in 2 Literature Review
achieving outcomes as expected and satisfying in
online transactions, [8]. Various studies have 2.1 Social Cognitive Theory of Trust
shown that trust positively influences online According to the Social Cognitive Theory related to
purchase intentions, with higher levels of consumer trust, trust encompasses mental states, attitudes, and
trust correlating with higher levels of consumer social relationships. Mental trust is based on our
purchase intent, [8]. Furthermore, trust in e-reviews goals and beliefs regarding something. According
positively impacts choices, [9]. Trust also to this theory, trust remains a gamble because it
influences customer loyalty and creates an intent to involves risks, requiring careful analysis, especially
repurchase. Customers will only make repurchases in the formation of complex social trust. Trust
from sellers they know and trust, [10]. needs to be built on cognitive theories related to
Despite the importance of trust in online morality, reputation, disposition, and authority.
business, the level of customer trust remains low. Commitments, contracts, and authorities can
IDC and Microsoft, in Microsoft Indonesia 2019, enhance and build our mental trust. Trust is
conducted a study titled "Understanding Consumer rational; therefore, it is not an irrational concept,
Trust in Asia Pacific," revealing consumer [13].
concerns about digital services. Table 1 shows that
the level of consumer trust in the use of digital 2.2 Grand Theory TAM
services is only 31% in the Asia Pacific region. In The Technology Acceptance Model (TAM) is a
Indonesia, the customer trust value is slightly method or model used to predict the acceptance of
better. The same institution's survey involved 91 new technology users, [14]. TAM is an adaptation
respondents from the Gen Z population in of the Theory of Reasoned Action, which discusses
Indonesia, indicating that 44% of customers trust user behavior towards new technology, [15]. This
digital services. theory suggests that people's intention to accept or
The same survey explored the reasons behind adopt technology is influenced by two factors: the
consumer distrust. There are five factors ease of use and the usefulness of the technology in
influencing Consumer Trust in the use of e- daily life, [16]. Ease of use refers to the level of
commerce. First is the issue of Security voiced by difficulty in using the technology, while the
59% of respondents. This is followed by concerns usefulness of technology in daily life refers to users
about Privacy (57%). After that, customers are also agreeing that the technology makes their lives more
worried about reliability (53%), ethics (42%), and efficient and effective, [17]. Therefore, many other
compliance (29%). This study will focus on studies recommend the use of TAM, considering its
confirming the influence of two factors, Security better explanatory power, especially when
and Privacy in Online Transactions on Trust. extending to exogenous variables, [18].
The main concerns of people who do not
engage in online transactions, as claimed by the
2.3 E-Commerce
Better Business Bureau, are security in online
Online shopping is a growing trend due to the
payments, company reliability, and the lack of
increasing number of people who find it convenient
privacy and policies, [11].
to purchase goods or services using the internet.
According to [12], customer concerns about
Online shopping or E-Commerce continues to
privacy depend on how familiar they are with a

E-ISSN: 2224-2899 776 Volume 21, 2024

 David Tjahjana, Diena Dwidienawati,
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,
DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

evolve as global online sales are estimated to reach 2.5 Security

21.8% by 2024, [19]. E-commerce, according to Security can be defined as a form of defense
[20], can be defined as the place where the against transaction and client information fraud,
exchange of commodities occurs online between whether committed by internal or external parties,
individuals using the internet, along with the [23]. Security is a system owned by a company to
transmission of data between electronic devices make transaction processes safer and prevent fraud
using the internet. The growth of E-Commerce can in payments, [24]. Security is defined as a form of
be seen in how modern economies are increasingly protective effort to avoid an illegal goal, originating
based on electronic markets, [20]. E-Commerce can from recorded and collected personal information
be defined as business activities that can transform data as a form of crime threat, [25]. From the three
internal and external relationships by creating value statements above, it can be concluded that security
and online economic opportunities with rules that is a form of effort and protection for consumers
include product transactions, services, information regarding personal data and avoiding fraud in
notifications, and electronic payment transactions, making payments.
[15]. Security has an impact on purchase intent and
trust, [23]. Online purchase intentions stem from
2.4 Trust the security of transactions and payment systems of
Trust is defined as a decision determinant in an e-commerce platform, [23]. Security also
reducing confusion (uncertainty) in conducting influences customer satisfaction, where consumers
transactions and relationships in the market, [11]. install an application if the security of the
Trust is defined as an ability to depend on a partner application is known clearly, [22].
with another, [21]. Trust is a belief that others will
not take advantage of you and that sellers will 2.6 Privacy
fulfill what they have promised, [22]. Therefore, it Privacy is defined as the ability to control and limit
can be concluded that trust is the belief that physical, interactional, psychological, and
consumers have in the seller and is also a means of informational access to oneself or a group, [12].
decision-making. Privacy is defined as the consumer's ability to
Several factors can influence the level of control sensitive information, typically concerning
consumer trust. Previous research has shown that the unauthorized collection, access, and use of data
technology experience and online knowledge are for secondary purposes, [10]. Privacy is defined as
essential for trust because consumers will seek an individual's ability to control, manage, and
information from an online shopping site first, [21]. selectively disclose personal information, [23].
Based on the literature on consumer trust and Therefore, the definition of privacy can be
purchase intention in e-commerce, several variables summarized as the consumer's ability to control
can influence trust. These variables include brand personal information to prevent misuse by
recognition, service quality, customer satisfaction, irresponsible parties.
and word of mouth, [11]. Furthermore, significant Previous research indicates that privacy is a
brand recognition has an impact on consumer trust, significant driver in the intention to purchase in the
[11]. Satisfaction with the vendor, website quality, online or social media context, [12]. Research on
and reputation are three significant aspects of trust privacy issues in the context of social media is
in a vendor for repeat purchase intentions, [11]. conducted due to the significant impact of these
The consequences of consumer trust affect variables on consumer trust and purchasing
consumers' intentions to use or continue to behavior, [12]. Privacy and security are key
purchase on e-commerce websites, [11]. Existing components that hinder the expansion of web-based
literature strongly supports the positive relationship purchases, [12].
between consumer trust and intentions to buy in e-
commerce, [11]. Trust is a critical factor in 2.7 Hypothesis Development
facilitating consumer purchases with the intention [22], conducted a study in 2022 on the impact of
of online shopping. This leads to an increase in the security on consumers perception of market olace
final sales of e-retailers, [23]. Trust is a significant showed how security plays positive role to postive
driver in purchase intent. This is based on trust perception of market place. Another study from
increasing when e-commerce uses a third party as a Indonesia by [24], also confirms on how security
guarantee, [12]. positively influences trust which will lead to more
customer satisfaction.

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 David Tjahjana, Diena Dwidienawati,
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,
DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

Trust has important role in transactions. Since to assist in the research, (3) a Page outlining
trust can lower the perceived risk of the transaction. respondent requirements based on the scope of the
It holds higher importance in e-commerce. study; (4) Page collecting demographic information
Therefore trust should be built. A study from [25], of respondents, including initials, gender,
showed how trust is influenced by security, educational background, current location of
privacy, guarantees, customer service, website residence, and occupation; (5) Page containing
information, and laws regulating consumer questions about the variables under investigation,
protection in e-commerce. The role of security in namely Security, Privacy, and Trust (Appendix 1);
trust is also emphasized by [11] and [23]. (6) Page expressing gratitude to respondents for
Based on the preliminary research above, the first their availability in completing the questionnaire.
hypothesis of this study is:
H1: Security has a positive and significant effect on 3.1 Population and Sample
Gen Z's trust in Indonesian E-commerce. The population to be utilized in this study is
Generation Z, born between the years 1997-2012.
[21], conducted a study in 2018 on how privacy Data obtained from dataindonesia. id, as mentioned
impacts trust. The study involved 403 respondents by [29], states that the population of Generation Z
from groups with knowledge of technology and is approximately 68,662,815 individuals. The
coding and groups with little technology sampling method used to determine the
knowledge. The results showed that privacy has a questionnaire in this research is determined using
positive impact on the level of trust. Another study the Slovin formula. The Slovin formula is
from [12], which involved 1200 respondents determined by the margin of error used. The higher
confirmed how the guarantee of privacy from a the margin of error used, the fewer the. If the
provider had a positive impact on trust. tolerance level in this research is set at 5%, then the
A study from [26], further confirm how privacy calculated sample size is 400 respondents.
practices by organizations can positively influence
trust which will lead to purchase intention. The 3.2 Data Analysis
influence of privacy practices to trust is further The analysis technique employed is Partial Least
confirmed from study from [10] and [27]. Square (PLS), executed through computer
Based on the preliminary research above, the programs. In elucidating variance in the dependent
second hypothesis of this study is: variable, PLS adopts a "causal-predictive" approach
H2: Privacy has a positive and significant effect on to Structural Equation Modeling (SEM) Jöreskog &
Gen Z's trust in Indonesian E-commerce. Wold, 1982, as cited in [30]. PLS focuses on
explaining the variation in the model of dependent
variables based on its ability to simulate
3 Method relationships among variables simultaneously. The
The method employed in this research is a survey use of PLS-SEM aims to test predictive
method. [28], defines a survey as a means of relationships among constructs by examining
collecting information from individuals to describe, whether there are relationships or influences among
compare, and explain knowledge, attitudes, and constructs and employing latent variable scores for
behaviors. Information collection will be carried further analysis. Additionally, PLS is used when
out by presenting a questionnaire to individuals in the research has a small sample size, and non-
the form of a survey. A questionnaire is a series of normally distributed data, and prioritizes accuracy
formulated questions designed to record in prediction results, [30].
respondents' answers in the closest alternative form The PLS analysis program is divided into two
and collect a large amount of quantitative data, parts: Measurement model analysis and Structural
[28]. analysis. Measurement model analysis is used to
This study utilizes the convenience sampling define the measurement of latent variables and aims
distribution technique focused on gathering to measure the reliability and validity of the
information from members of the population measurement model, [30]. Meanwhile, Structural
willing to provide their responses, [28]. The model analysis is useful for showing the
distribution of the questionnaire questions uses interrelationships among latent variables in the
Google Forms, consisting of sections that include: form of a structured model, [30].
(1) a Description of the ongoing research, (2) a
Confirmation page of the respondent's availability

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 David Tjahjana, Diena Dwidienawati,
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3.1.1 Measuring Model Analysis substantial, moderate, or weak influence,

Validity serves the purpose of assessing how well respectively, [30].
or good a technique, instrument, or measurement Effect size (f2) measures the strength of the
process captures a specific concept, [28]. The influence of independent variables on dependent
Average Variance Extracted (AVE) can be utilized variables in the PLS model. A larger f2 value
to evaluate the validity of convergence for each signifies a stronger influence, [30].
measure, and its metric aims to assess the Predictive relevance (Q2) assesses the PLS
construction of the validity of such convergence. model's ability to predict new or out-of-sample
The minimum AVE value is 0.50. An AVE value data. A Q2 value greater than zero indicates better
of 0.50 or higher signifies that the construct predictive accuracy, [30].
successfully explains 50 percent or more of the Path coefficients measure relationships in a
variation in the indicators forming a construct. PLS model. A value closer to (+1) signifies a
Outer Loadings, commonly known as the Outer strong positive relationship, while proximity to (-1)
Model, indicate the relationship between the indicates a weaker, negative relationship, [30].
construct and the indicator variable considered
outside the formative construct. The general rule is Model Fit
that outer loadings should be 0.708 or higher. In Model fit, indicating how well the PLS model
research, values below 0.708 are often encountered, describes relationships, is measured using the
especially when using newly developed scales. Goodness-of-Fit (GoF) index. The Normed Fit
When removing indicators with outer loadings Index (NFI), with a recommended value of ≥ 0.90,
below 0.708, caution must be exercised in is used for model fit analysis [30].
examining the effects of removal, particularly on Path coefficients serve as tools for hypothesis
composite reliability, such as construct content testing in the inner model. The t-statistic and p-
validity, [30]. value are examined, with a t-statistic > 1.96 and a
The Fornell-Larcker Criterion is one of the p-value < 0.05 indicating a significant influence
proofs of discriminant validity. According to the between variables X and Y, [30].
Fornell-Larcker criterion, the square root of the
AVE for each construct must be greater than the
correlation with other constructs. The evaluation 4 Result and Discussion
result from Fornell-Larcker, with the square root of
the AVE for reflective constructs on the diagonal 4.1 Demographic
and inter-construct correlations below them, The sample data collection in this research
confirms discriminant validity, [30]. successfully obtained a total of 422 respondents
Reliability, indicating the consistency and through the online distribution of questionnaires
stability of data or findings, is fundamental for using Google Forms. Out of the 422 respondent
robust research outcomes. Using the SmartPLS 3.0 data, 22 data points were not utilized due to not
program, reliability is assessed through Composite meeting the criteria of the respondent characteristic.
Reliability, with a threshold of greater than 0.7 for Based on 400 respondent data, the distribution
confirmatory research and 0.6-0.7 for explanatory by gender shows that males account for 55.5%,
research [30]. females for 42.5%, and those unwilling to answer
constitute 8%. In terms of educational background,
3.1.2 Structural Model Analysis the majority of respondents have a bachelor's
Collinearity, a condition of strong linear degree (59.5%), followed by a doctoral degree (S3)
relationships between independent variables, can at 0.25%, master's degree (S2) at 2%, and others at
disrupt PLS analysis. Commonly used methods 38.25%. Regarding the respondents' residential
such as Variance Inflation Factor (VIF), Tolerance, areas, the majority reside in the Greater Jakarta
and Condition Number are employed. A VIF value Area (Jabodetabek) at 54%, while those outside
greater than 5, tolerance less than 0.2, or a Jabodetabek constitute 46%. Additionally, in terms
condition number exceeding 30 signals collinearity of occupation, the majority of respondents are
issues, [30]. students (63.75%), followed by private employees
The coefficient of determination (R2) gauges at 25%, entrepreneurs at 10%, and others at 1.25%.
the percentage of influence between independent Hence, it can be inferred that a significant portion
and dependent variables. The Adjusted R2, of them work as students.
employed in this study, provides a nuanced view,
with values around 0.75, 0.50, or 0.25 indicating

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4.2 Measurement Model Analysis From the second Fornell-Larcker Criterion test,
Convergent Validity and Discriminant Validity it can be concluded that the results are acceptable
measurements were employed to determine the and meet the criteria. This is evident from the data,
level of validity, crucial for the feasibility of further values of 0.811, 0.837, and 0.794 are greater than
testing. Convergent Validity results, utilizing Outer the data below them.
Loadings and AVE, indicate that the sum of AVE
exceeded 0.5, and Outer Loadings exceeded 0.708. Reliability Test
Discriminant Validity was measured with the It can be concluded that all variables meet the
Fornell-Larcker Criterion. The Fornell-Larcker criteria, as the test results indicate values between
maximum limit should not surpass the square root 0.70 and 0.90 (Table 2). Additionally, the
of AVE. From the results of Fornel Lacker Composite Reliability values show satisfactory
Analysis, it is concluded that the correlation values results, with values greater than 0.6. Therefore, the
between variables are still not valid. The AVE conclusion is that the variables are deemed
square value for the Security variable at 0.811 is sufficiently satisfying.
smaller than the correlation value between Privacy
and Security at 0.826. Similarly, the AVE square Table 2. Cronbach’s Alpha and Composite
value for the Privacy variable at 0.794 is smaller Reliability
than the correlation value between Trust and Cronbach's Composite
Privacy at 0.828. This does not meet the criteria Alpha Reliability
according to the Fornell-Larcker Criterion. A retest
is performed by removing indicators PV4, PV5, Security 0.827 0,885
TR4, and TR9. From the second analysis, the AVE
Privacy 0.803 0,884
values for each variable are greater than 0.5.
Consequently, further testing proceeds to the next Trust 0.902 0,922
stage, considering outer loading values as per Table
1.
4.3 Structural Model Analysis
Table 1. Outer Loading 2nd Run Coefficient of Determination (R Square)
Security Privacy Trust The variables tested influence Trust by 68.2%.
Hence, it can be inferred that the impact generated
PV1 0,845 is moderate, as the value exceeds 0.5.
PV2 0,858
Predictive Relevance (Q Square)
PV3 0,838 The value obtained for the Trust variable is 0.423.
Therefore, it can be concluded that this value is
SC1 0,835 greater than 0, indicating relevance from the path
model's prediction to the dependent construct. This
SC2 0,816 implies that the model can predict without using
samples.
SC3 0,777

SC4 0,816 Effect Sizes (F Square)

The results reveal the relationship between Security
TR1 0,787 and Trust at 0.226 and Privacy and Trust at 0.256.
These values are greater than 0.2 but less than 0.35,
TR2 0,792
indicating a moderate effect for both Security and
TR3 0,771 Privacy towards Trust.

TR5 0,790 Fit Model

The NFI result is 0.86, which, when converted to a
TR6 0,810
percentage, is 86%. It can be concluded that the
TR7 0,797 model, at 86%, fits well. Additionally, the SRMR
result is 0.059, which is less than 0.08. The fit
TR8 0,807 model testing using rms theta yields a value of
0.177, signifying it does not fit into the well-fitted

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category. Thus, it can be concluded that this obtained for the relationship between these two
research falls under the moderate fit. variables is 8.109. This value exceeds the
maximum limit of 1.66. The p-values for the
Path Coefficient relationship between these two variables are 0.000,
Based on Table 3, the results for Security towards considered less than the maximum limit of 0.05.
Trust are 0.425, and Privacy towards Trust is 0.452. Additionally, the path coefficient for these two
These values have positive figures and are close to variables is positive. Therefore, it can be concluded
+1. Therefore, the conclusion is that Security that Security has a positive and significant
towards Trust and Privacy towards Trust have a influence on Trust.
positive and strong relationship. This study contributes to the existing body of
knowledge by confirming a positive and significant
Table 3. Path Coefficient relationship between security and customer trust.
Trust The result of this study is aligned with previous
research findings, [11], [22], [23], [24], [25].
Security 0,425
This study showed that efforts by service
providers to ensure a robust security system
Privacy 0,452 directly contribute to fostering trust. The findings
have practical implications for businesses and
Trust service providers, making the argument for
academic attention even more compelling. In an era
Hypothesis Testing where cybersecurity threats are increasingly
Based on the T-Test results in Table 4, the prevalent, understanding the tangible benefits of
following conclusions can be drawn: investing in security measures becomes paramount
for organizational success. The academic
Table 4. Hypothesis Testing discussion on the positive relationship between
security and trust serves as a foundation for
T-Statistics P Path Result
(|O/STDEV|) Values Coefficient
evidence-based decision-making in real-world
scenarios.
H1 : 8,109 0,000 0,425 Supported On the relationship between privacy and trust
Security- this study confirms that there is a positive and
>Trust significant relationship. The T-statistics value
H2 : 8,747 0,000 0,452 Supported
obtained for the relationship between these two
Privacy- variables is 8.747. This value exceeds the
>Trust maximum limit of 1.66. The p-values for the
relationship between these two variables are 0.000,
H1, Security - Trust, is supported as it has a T- considered less than the maximum limit of 0.05.
Statistics value greater than 1.66, specifically Additionally, the path coefficient for these two
8.109, and a p-value less than 0.05, specifically variables is positive. Therefore, it can be concluded
0.00, indicating a significant influence. that Privacy has a positive and significant influence
H1, Privacy - Trust, is supported as it has a T- on Trust.
Statistics value greater than 1.66, specifically The results of this study align with the findings
8.747, and a p-value less than 0.05, specifically from the following studies, [10], [12], [21], [26],
0.00, indicating a significant influence. [27]. These studies state that positive Privacy has a
positive and significant relationship with Trust.
These results have important real-world
4.4 Discussion
implications for both researchers and practitioners
From the hypothesis testing results presented in
in academic fields. In a time when privacy is a
Table 4, it can be observed that both hypotheses are
growing concern in different areas, recognizing
accepted. The explanation regarding the influence
how privacy positively affects trust is crucial. The
of each variable has been formulated. Therefore, it
study's conclusion offers valuable insights for
can be stated that the hypothesis formulation aligns
organizations looking to build and keep trust with
with the hypothesis testing results.
their stakeholders by giving priority to and
On the relationship between security and trust
improving privacy measures.
this study confirms that there is a positive and
significant relationship. The T-statistics value

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5 Conclusion Considering these suggestions, future research can

This research reinforces previous findings stating contribute richer insights to the literature and aid in
that security and privacy factors influence the development of more effective business
consumer trust levels. Furthermore, it provides strategies in the e-commerce industry.
specific insights into how security and privacy can
impact trust levels, particularly in the context of
online shopping among Generation Z consumers. References:
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,
DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Adam Hakim, Alfredo Rivera,
DOI: 10.37394/23207.2024.21.65 Nilson Tandiono, Yudha Ardika

APPENDIX
1. Operational Variable
Variable Definition Code Indicator References

Security Security is A system owned by the company to SC 1 In e-commerce, I do safe spending _ guaranteed . Modified
make the transaction process safer and preventive [24]
internal fraud occurs do payment [24]
SC 2 Ecommerce ensures giving information with
clear.

SC 3 Ecommerce ensures protection from seller's

refusal .

SC 4 Ecommerce guarantee data and security

information .

Privacy [10] illustrates Privacy as A ability of consumer PV 1 Policy e-commerce that delivers consumer Modified
in control information sensitive . information about the seller so which creates a [10]
feeling of security in the transaction .

PV 2 Ecommerce obeys standard online data

protection.

PV 3 E-commerce guard confidentiality information

personal i .

PV 4 Policy security e-commerce easy understood

PV 5 Ecommerce displays terms and conditions before

do transaction

Trust Trust is the fulfillment hope consumers For TR 1 Ecommerce capable of fulfilling all promises Modified
interesting consumer in do purchase [24] given _ to consumers. [24]

TR 2 Products and services offered _ e-commerce by

what was promised .

TR 3 Ecommerce provides good products and services

._

TR 4 Ecommerce is reliable For fulfil needs of

consumers.

TR 5 Items offered _ e-commerce by description

TR 6 Ecommerce is capable For prioritize the interest

consumer .

TR 7 Ecommerce is capable handle complaint

consumers.

TR 8 Ecommerce No harm to consumer .

TR 9 E-commerce give profit at the moment of

shopping.

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