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    Chapter-1

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    Chapter-1

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    Chapter-1

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    of 3

    Chapter 1: The Problem and its Background

    • Introduction
    This study is about the consumers’ perception of online e-payment systems as well as the level
    of cancellation when consumers purchase a product while using online payment methods.
    According to the consumers, the perception of internet security and trust are crucial factors to
    consider when deciding whether or not to use the e-payment option. The perceived simplicity of
    use seems to be more important when deciding between various e-payment systems. (Antinoja R.,
    Scherling, D., 2019)

    With the rapid growth of online shopping, it becomes increasingly important for retailers to
    prioritize factors may pertain to consumer-to-consumer (C2C) or business-to-business (B2B)
    transactions, including concerns related to transaction risks and the absence of face-to-face
    meetings. Therefore, the primary goal of the study is to investigate the elements that impact the
    satisfaction of consumers in their interactions online. (Boon, L. K., Fern, Y. S., Kler, H. S., & Singh,
    B,. 2021)

    The impact of the digital shift in the business world, particularly the transition to e-commerce,
    on customer loyalty and the importance of after-sales assurances in maintaining customer
    satisfaction and loyalty. An e-commerce company like Shopee treats this issue with great
    seriousness and has a zero-tolerance policy towards any fraudulent activities occurring on their
    platform. (Masita, I,. Kamsul, A. R., Aidil, A. N,. & Hanan, S. A., 2022). Shopee, although not the
    first entrant into e-commerce market, currently stands as one of the largest e-commerce platforms
    in the country. Despite the growth in sales and their increasing reputation, Shopee has faced
    challenges in meeting its promised performance standards. Numerous complaints on platforms like
    TrustPilot, Facebook, and CH Play reviews pose a potential threat to Shopee’s standing in the
    market. (Dang, H. H. T., 1970, January 1). Many often consider customer loyalty as a highly
    significant outcome of an effective customer relationship management program. Shopping
    guarantees represent a post-purchase service strategy aimed at fostering customer loyalty to a
    preferred online shopping platform. (Nasir, M., Adil, M., & Dhamija, A, 2021). Cash on delivery
    is a payment method that buyers can use to pay cash when the products or goods arrive at their
    hands. Cod payment method cause many problems such as the convenience of the payments
    through online shopping. (Maisyura, M., Sukmawati, C., Dewi, R., & A., 2021)

    Online entrepreneurs share the same fundamental principle as traditional businesses: attracting
    and engaging customers through competition market. Consequently, it’s crucial to employ
    innovative thinking and seek product differentiation as strategies to gain a competitive edge in the
    market. (Sholichah, N. R., Respati, H., Natsir, M., & Kadeni., 2022, May)
    • The Rationale of the Study
    This research includes impacts on consumer behavior when using online shopping apps. It turns
    out that financial risk has a negative impact on consumer behavior while the product risk has a
    significant positive impact. The research suggested that online businesses should limit the return
    policy risk by making understandable and clear policy and procedures, as well as to adhere by
    those stated policy and rules. (Tham, K., Dastane, O., et. Al., 2019, November 30)

    • Statement of the Problem


    The rise of e-commerce and online shopping platforms has revolutionized the way we shop and
    make purchases. While the convenience and accessibility of online shopping have been a boon for
    consumers, it has also led to the rise of compulsive buying behavior and online shopping addiction
    among consumers. We need to explore the phenomenon of compulsive buying behavior and online
    shopping addiction among consumers and to understand the factors that contribute to this problem.
    The findings from this research can help shed light on the issue and inform future research and
    interventions aimed at addressing compulsive buying behavior and online shopping addiction
    among consumers. Studies have shown that compulsive buying behavior and online shopping
    addiction can have a significant impact on an individual's financial and emotional well-being. It
    can result in mounting debt, increased stress, and reduced self-esteem.

    • Objectives of the Study


    Online shopping save time for consumers to shop the physical shops. Online shopping provides a
    platform for them to compare the prices (Jain, 2016). This makes consumers satisfy with the online
    shopping because they can buy goods with lower prices without spending extra energy to shop
    many shops.
    General Objectives
    To gain awareness among consumers’ about the safeness of the Shopee Guarantee Policy.
    Specific Objectives
    The process of refunds if buyers and sellers encounter problems.

    • Research Hypothesis or Assumptions


    There is a significant relationship between the interest of the consumers’ in using online shop
    platforms and the online entrepreneurs selling online.

    • Significance of the Study


    This study will be beneficial to the following:
    Students. The result of this study will help them understand the positive and
    negative risks of using online shopping apps in order for them to understand the phrase “think
    before you click”.
    Parents. The result of this study will encourage them to support and guide their
    children in the usage of online shopping.
    Community. The result of this study will give them ideas on how to make their
    business work by using online shop platforms and they are also consumers’ who has needs on a
    daily life.
    Future Researchers. The result of this study will give the future researchers
    enough knowledge to accomplish their goal in knowing the important factors of using online shop
    platforms and has the courage to share what they know about it. It will give them the opportunity
    to teach the people who has less knowledge about online shop platforms.

    • Scope and Limitations


    This study is limited on the consumers’ interest in using the online shop platforms and the
    important factors of this platforms. The sampling technique used in this study is operational
    construct or theoretical sampling, it is the manifestation where it will construct, elaborate, and
    examine the study.

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