EXAMPLE (IMRaD format) colors, and inventory availability.

The ability to click on an

A QUALITATIVE STUDY OF TRUST AND PERCEIVED RISK OF item and add it to your cart without leaving the page you
ONLINE SHOPPING IN MANADO are on. The ability to feel’ merchandise through better
By: Elisa Tamatompol, Sifrid S. Pangemanan and Merinda Pandowo
(Jurnal EMBA Vol.5 No.3 September 2017, Hal.3395- imagery, more product descriptions and details. The ability
3404) to enter all the data related to your purchase on one page,
rather than going through several checkout pages. The
Abstract:
ability to mix and match product images on one page to
Internet growth has a positive impact for business
determine whether they look good together.
world. With the increase of online retailers on internet
world, online shopping becomes popular. The purpose of Though the Internet provides us with some
this research is to analyze the trust issues and perceived flexibility and easiness just by one click away, but the
risk of online shopping in Manado. This research used a flexibility also leads to other issues. It is like when we buy a
descriptive study method was conducted qualitatively pair of shoes, can we really trust the numbers indicated on
through in-depth interview with 10 respondent’s online our screen as the size that will really fit our feet? Don’t we
shoppers in Manado. All the data and information gathered
need to try it on first to be convinced to decide to buy the
was analyzed using tri-angulations which data were
gathered from the interview with difference informants, shoes? This then lead this study to conduct a research
different place of observation, and review from several about this issue and how the online shopping stores deal
literatures of various researchers. The result of this with the trust issue and perceived risk felt by customers.
research is trust and perceived risk affect online shopping, Customer confidence towards the online store will reduce
the higher consumer confidence against an existing site the perceived risk which would make customer took the
online will make them will often do online shopping, the decision to make a purchase online. In Manado online
smaller the risk though by consumers then the greater
purchasing has increased, this could in the review of the
their decision to make a purchase online. So the online
store must provide good service so that consumers growing number of online stores that are on offer through
continue to believe and will not feel aggrieved when media social. This shows that people are interested in
shopping online. Manado to make purchases online. The study will be done
qualitatively to observe the phenomenon in the field
INTRODUCTION directly, collect facts and conclusion directly from those
The fast changing world demands companies to whom experience the online shopping process.
develop themselves in order to strive. In order to support
the living, human beings are continuously creating and Research Objective
developing technologies that make our lives easier. One of Based on the problem described above, the
the major findings of digital era is the Internet. “The objective of this Research is to analyze the trust issues and
Internet is whole networks that are connected to each perceived risk of Online Shopping in Manado.
other. Some computer in this network storing files, such as THEORETICAL REVIEW
Consumer Behavior
web pages, can be accessed by all network computers -
Consumer is the one who consumer’s goods and
Strauss, El-Ansary, Frost (2003:.8). McDaniel, Lamb, Hair
services produced. Consumers are a person, company or
(2011) contended that communication and technology
other entity which buy goods and services produced by
have made the world smaller so that almost all consumers
another person, company, or entity, Durmaz and Jasblonski
everywhere wants all the things they have heard about,
(2012). Meanwhile, Wilkie (1986) says, behavior is the
seen or experienced. Internet changed the way we
combination concepts of motivational, activities, process,
communicate.
roles, and complexity. Behavior is the tool to achieve
However, among all the easy mobility provided by
objectives and target that, consumers drives to his needs
the internet, there comes also some trust issues on the
and desires. Moreover, consumer behavior at different
reliability of those online shops. As people know that while
times has different complexity; Buy different product by
shopping in ‘physical’’ stores enable us to fully involves in
different people has implications. Where while buying
selecting the product we are looking at, to touch, taste or
some goods will involves all three process steps of
test on the items, in online shopping world, all those
consumer behavior, while buying some goods (consumed
transactions are done without the full involvement of the
regularly) is simple and does not require multiple steps.
buyer. Involvement is a person’s perceived relevance of the
Meanwhile, consumer will try to make buying process
object based on their inherent needs, values, and interests.
simple through trusting other and loyalty to the brand.
A person could end up choosing a relatively chip restaurant
Consumer’s behaviors includes different roles such as
because he can just ask the chef to adjust his taste and
consumers in different time can play each of the three
portion of his foods, compared to other branded
roles which are role affective, buyers and consumers at the
restaurant whose foods can be ordered online but already
same time.
with fixed portion and combination that are unlikely to
Online Shopping
adjust.
Online shopping is the process whereby customers
Online shoppers value these aspects of a Web Site:
directly buy goods and service from a seller without any an
The ability to click on an item to create a pop-up window
intermediary service, over internet, Moling (2011).By
with more details about the product, including price, size,
shopping through internet, customer can easily, review the indicates that greater the internet experience greater
goods and services that they want to buy. Online shopping positive response is expected from online buyers.
does not require direct face-to-face communication. Online Conceptual Framework
shopping can be done separately from anywhere around Conceptual framework is the arrangement of
the world as long as there is an internet connecting. There logical construction that regulated in order to explain the
are four benefits of online shopping which are variable in the research. Based on journal above the
convenience, selection, information and price. conceptual framework show below:
Trust
TRUST PERCEIVED RISK
Trust is a long-term proposition. Trust an online
shopping process can only be support, not controlled, since
trust needs to be earned. Since this shopping medium is
relatively new and most of them have only little experience
with it, shopping on internet provides a challenge to many ONLINE SHOPPING
customers (Monsuwe, Dellaert,and Ryuter, 2004:114).
Perceived Risk Figure 1. Conceptual Framework
One of the key elements in buying behavior is risk Type of Research
(Kumar and Grisaffe, 2004 ) which is defined as an attribute This research is appropriated to be conducted
of an alternative decision reflecting the variance of its qualitatively by the researcher. As quoted by Burns and
possible outcomes (Gefen, Rao, and Tractinsky, 2002). Bush (2006), Qualitative research involves collecting,
Perceived risk is somehow involved in all purchase analyzing, and interpreting data by observing what people
decisions, especially in those where the outcome is do and say. This research will be conducted qualitatively by
uncertain. In online shopping, the consumers who prefer direct observations as well as literature study to find out
Internet transactions to traditional purchasing are the ones the essential result that can be a trigger for online
who have low-risk avoidance profiles. Thus, whenever shopping providers to better improve themselves in order
consumers alternate, postpone, or cancel their purchase, it to get consumer’s trust. This research used a descriptive
is an important indication that they perceive the existence study method. According to Sekaran and Bougie (2009) the
of risk (Hong and Yi, 2012). goal of descriptive study is to offer to the researchers a
Previous Research profile or to describe relevant aspects of the phenomenon
Andromachi , Panos (2014) about the influence of of interest from an individual, organizational, industry-
perceived company’s reputation on consumers trust and oriented, or the perspective. Descriptive study is a
effects of trust on intention for online transactions. The statistical study to identify patterns or trends in a situation,
research was conducted quantitatively using regression but not the causal linkages among its different elements. It
method and the finding indicated differences between helps in generating hypothesis o which further research
Saudis and Malaysians in e-service quality perception. And may be based.
the result of this research is perceived company Place and Time of Research
reputation, online trust and intention for online The study was conducted in Manado on May-June,
transactions are three of the issues for which a large 2017. The location of the study is Manado city.
number of researchers are working on these in the Population and Sample
academic community. Trust is very essential and has been In qualitative research, social situation can be
called key to e-commerce and therefore building trust is considered as the population. According to Spadley (1980)
even more vital. in stated that social situation consists of 3 elements those
Arshad, Zafar, Fatima, (2015) which studied about are: Place, Actors, and Activity which have synergic
the impact of perceived risks on online buying behavior. interaction. The population of this research is online
Through this research we get to know various aspect of risk shoppers from Manado.
that impacts directly or indirectly on online consumer Snowballing – also known as chain referral
buying behavior. The findings indicate that perceived risk is sampling – is considered a type of purposive sampling. In
positively related to online consumer buying behavior. this method, participants or informants use their social
Perceived risk is an important factor for online buyers and networks to refer the researcher to other people who
it is necessary to be studied to know the decision making could potentially participate in or contribute to the study.
criteria of buyers. Security risk and financial risk goes to the This sampling method helps the researcher to get reliable
relationship online consumer buying behavior and these informants in order to have believable answers.
relationships indicate that security risk and financial risk Respondent of this research Manado citizens who currently
must be low in order to get a high and positive online tend to purchase things from the internet.
buying behavior. Time and convenience risk goes to the Research Procedures
relationship that indicates that lessen the risk greater the Ten steps to conduct a qualitative research is, First,
positive buying response is expected from online buyers. think carefully and choose the topic based on the self-
Expected from online buyers. Whereas, psychological risk preferences. It is really important for the researchers
because it will be really helpful for the researchers to secondary data, the researcher could make grounded
conduct the research when the researchers have an theory as the guidance to conduct this research.
interest and passion throughout the research process. Reliability and validity
Second, compose the statements about the topic why the Sekaran and Bougie (2009:384) stated reliability
research is important to be examined. Third, describe the and validity have slightly different meaning in qualitative
specification of the topic focus. Be more focus on and research. Reliability is a test of how consistently a
explore the interest area by consider the choices available. measuring instrument measures whatever concept is
Fourth, compose the research questions. The research measuring. The research result accurately represents the
questions based on the topic focus that the researchers collected data and can be generalized or transferred to
needed to answer and discuss. Fifth, define the goals and other context or settings. Validity is a test of how well an
the objectives of the research. It must focus on the original instrument that is developed measures the particular
purpose of the research and its potential and also the concept it is intended to measure.
objectives the researchers needs to achieve. Sixth, review
several literatures that related or studied similar topic. The Data Triangulation
literatures may help the researchers to have knowledge Rugg, D (2010) stated Data triangulation is the use
about the topic and as a reference for the conducting of a variety of data sources, including time, space and
research. Seventh, develop the research design that best persons, in a study. Findings can be corroborated and any
suited for the research. The research design helps the weaknesses in the data can be compensated for by the
researchers to perform systematically throughout the strengths of other data, thereby increasing the validity and
research process. Eighth, conduct the self-assessment reliability of the results. The approach has been used in
about the strengths the researchers have and needs in many sectors to strengthen conclusions about findings and
order to complete the research. Ninth, make a plan, to reduce the risk of false interpretations.
conduct and also manage the research. This step including Data Reduction
the action plan the researchers need to develop, maintain Moreover, according to Sekaran and Bougie
the research activities and pay attention to the relational (2009:370) data reduction refers to the process of
pattern. The last, compose and submit the research. This selecting, coding, and categorizing the data from this
include revise step before the research submitted or research. In other words data reduction is the time when
presented researcher need to make summary, short explanation and
classification of the data gathered from the informants.
Data Analysis Method
According to Sekaran and Bougie (2009) there are Data Display
three main data collection method in survey research, After data has been reduced, the data will be
those are interviewing, administering questionnaires, and arranged in display to present the data in order to draw
observing people. Qualitative data are generally collected final conclusion of the research. The data can be displayed
using some type of unstructured interviews or observation. into some ways such as quotes, a matrix, a graph, char
There are 2 types of data source which are primary data illustrating, or can be display in narrative text to explain the
and secondary data: result and draw conclusion.

1. Primary Data Drawing Conclusion

Sekaran and Bougie (2009) primary data refer to Conclusion drawing process has been started since
information obtained first-hand by the researcher on the the data collection process on the field and continued with
variables of interest for the specific purpose of the study. the process. The whole data and information must be
The primary data of this research is obtained by Interview processed through the analytical examination by the
with the selected informants and through observation. researcher, and after process the data then the final result
2. Secondary Data can be revealed. Listed below are rules of thumb for
The secondary data for this research were drawing conclusions from qualitative data collected during
obtained from theory in several economic text books school self-evaluations. (The list is adapted from Miles and
especially marketing, several journals as the literature Huberman " Qualitative Data Analysis”1994).
review, and information from internet. Text books help the
researcher to have a better understanding about the 1. Start with a quick scan of the evidence to see what
theory being studied in this research. The journals help the 'jumps out'. Then verify, revise, or confirm that impression
researcher to make a comparison among the case studies through a more careful review.
in each journal with the situation and result of this 2. Apply a number of data analysis tactics. Among the most
research. The data and information in internet from articles useful in the analysis of qualitative data are:
help the researcher to have better understanding and a. Noting patterns and themes: These are recurring
expand her knowledge about this research. From this themes which pull together many separate pieces of data.
It may be useful to group evidence according to theme. It is
important to realize that evidence may be applicable to between rhetoric and reality. If an innovation is working
one or more themes in the analysis and may have a bearing then the results should be evident. For example, if it is
on various parts of an evaluation. It is possible that an concluded that the school has good communication
observer external to the immediate evaluation team may structures, then there should be evidence that parents,
bring a different interpretation to the analysis of staff and subjects are well informed.
information. d. Check out rival explanations: There is a danger in that
b. Making contrasts and comparisons: Comparison is a seeking to confirm emerging hypothesis evidence pointing
classic way to test a conclusion. Contrasts can be drawn or to a rival point of view is neglected. It is advisable to hold
comparisons made between sets of information that are onto a number of rival explanations until one becomes
known to differ in some important respect. Responses of increasingly more compelling. Bias is possible by making
parents, students and teachers can be compared and early decisions. Ensure that there is sufficient evidence for
contrasted. Differences can be noted within those groups, a full understanding of the issue.
such as among executive, ancillary and teaching staff and e. Find representative exemplars: If it is not possible to
boy/girl or younger/older students. When conflicting find genuinely representative exemplars of conclusions
information appears it is often helpful to compare and then the conclusions may be faulty.
understand the sources of different data.
c. Clustering: Clustering is a process of grouping and then RESULT AND DISCUSSION
conceptualizing information that has similar patterns or Result
These interviews conducted using semi-structured
characteristics. Clustering is frequently called 'categorizing'.
interview with help of ten informants who currently tend
At one level information can be clustered around the key
to purchase things from the internet. Those informants
terms of reference (the questions to be answered) for the
considered by the researcher that they could give clear
evaluation, but care needs to be taken to ensure that
explanation, honest answer, and reliable information.
predetermined clusters or categories do not hide other
Based on the table above, it can be seen that most of the
themes or clusters of information. Clusters are not
respondents were female. This means the interest in online
mutually exclusive.
shopping more favored by the female. Characteristics of
d. Counting: Although the qualitative method goes beyond
respondents based on age can be seen that the age of the
how much of something to describe its essential qualities, a
respondents above 20 years of age and under 30 years old.
lot of counting goes on. The number of times something
This is because the majorities in this age is more
occurs or is reported says something about how important
accustomed to using technology and have the desire to
or how significant an item is. Checking numbers is
shop. Those informants considered by the researcher that
particularly important to see quickly what is in a large
they could give clear explanation, honest answer, and
amount of data, to verify a hunch or hypothesis, or to
reliable information.
protect against bias.
Informant 1 is a female university student. She has
3. As conclusions form it is often useful to write them down
been shopping online. It caused by his routine activity in
for further consideration. The process of writing adds to
browsing internet and sees many online sites that offer
clarity of thought and should lead to further analysis.
variety of goods. Online sites that she often visited are a
4. First conclusions need to be checked against other
trusted online site or a site which provide a clear
information, evidence and evaluation data.
explanation of their online store. During this time in online
5. Initial conclusions need to be verified and checked.
purchasing, she was always satisfied with all the products
There are many tactics for verifying initial impressions and
she purchased. She is very happy with online sites that she
conclusions.
has often used because the information about all the
a. Follow-up surprises: This means that if an initial
products is very clear. In online shopping she remains
conclusion is outside the range of what is expected there is
cautious. Because she thinking about the risk that will
a need to investigate why that has happened. It could lead
probably happen. But all this time she has never had a
to a revision of assumptions that may have been taken for
problem in buying online because she chooses trusted
granted.
online sites.
b. Triangulation: In qualitative methodology common
Informant 2 is a housewife. She has made several
forms of triangulation are by data source (parents, staff,
online purchases. But until now he still hesitated and
and students) and by method (interview, document
always thinking about the risks in the purchase online. This
analysis, observation, survey etc.). Within the data source
is because she has experienced problems when an error
there is a need to be aware of the differences and
occurs in the delivery of goods. She always thought there
variations that exist (e.g. teaching and ancillary staff;
would be a lot of risk when shopping online. She
executive and non-executive staff; older or younger
considered about the mismatched risk of fashion products
students; boys and girls; parents of different socio-
that buyers will buy on online fashion sites because size of
economic levels).
shoes, dress, or other fashion items might be different
c. Making if-then tests: If the conclusion is correct then
from different producers. For example, purchased goods
something else should be evident. This is a good test
do not match the product information provided or Informant 8 is the female university student. She
problems in the transaction. will use the online sites that already used by many people
Informant 3 is female government employee. First, to decrease loss risk perception which could happen. For
she will find out the online sites before she decides to that, before doing shop, she will look for any information
purchase any goods. She will make an online purchase only or having some communication with the seller to talk
from the trusted sites which have clear information. She about any possibilities that could happen.
mentioned that she feel that she may suffer in several loss Informant 9 is a male university student. He
because she couldn’t trust that the online shopping sites believes in the online sites that he ever visited because
have provided highly secured transaction process She often they can give the clear information about the products
changes the type of transaction because of her fearing to completely, He believe that the online shop will deliver the
security risks of transaction. He will choose to pay directly products that the customers ordered even though there
if the online site provides that kind of payment service for could be some problems in the delivery process and that
safety reason. online site which he often used is a site that already proved
Informant 4 is a university student. The online site its quality service so that the risk perception may be
that she’ll be visited is a site which is already popular and decrease.
trusted by many people. So that, she believes that the Informant 10 is a male employee of a national
online site could give her a good service. Her decision to bank. He said that he believes in every online sites that he
choose that trusted online site, she believes that may be has used to shop, because till now he never get any
less possibility to get loss in her transaction. She aware difficulties in doing online shop. He firmly sure that the
about the loss they could suffer at the online shopping online shop he visited will fulfill the promise and their duty
activities. However they did not consider about the loss as seller because he already purchased from that online
because they were frequent buyers of certain online shop shop several times before.
and they can put full trust on them.
Informant 5 is a female university student. She Discussion
often use several kind of online sites, and she never face Trust affected online shopping
any trouble while doing that online purchasing, because According to Kimery and McCard (2002), trust is a
she was having good communication with the online seller, customer’s willingness to accept weakness in an online
so that she gain trust from them which make her decide to transaction based on their positive expectations regarding
purchase goods in their store, even though she still aware future online store behavior. Trust is very crucial thing for
with another kind of risks. She satisfied with the online online shopping. Online customers trade with someone
shop sites they frequently visited because they were that they never know, never see or meet before. Usually, in
provided with chatting application that allow them to ask online shopping, customers must pay the product first
anything about the products they wanted to purchase. before the product is shipped to customer. Transfer some
Their curiosity about the products can be directly asked to amount of money with the uncertainty if online retailer
the online chatting officers and they can receive clear whether will send the product or not affecting online
answer. shopping intention. In general the respondents argue that
Informant 6 is a housewife. In doing online good communication with seller at online sites and online
purchasing, she was choosing famous online stores that stores are able to give a good description about the
had been known and recognized by her friends or family. products they sell will increase their confidence to buy
But she still has the cautious feeling for the safety of online.
transaction in online shop. For that, she only shops for not-
Perceived Risk affected online shopping
so-expensive-goods. Then she may not thinking more
Perceived risk can be identified into two major types (Park,
about any risks later. Kyung, and John, 2010) First is Behavioral risk arises from online retailers
Informant 7 is a housewife. She gain her trust in who behave in such a manner by taking benefit of the reserve and
online purchasing while she get clear information from the remote nature of internet marketing techniques to monitor all dealings
effectively. Product risks also known as time and convenience risk, and
online sites, that make her decide to do online shop. Fear
psychological risks are included in this. And second Environmental risk is
of risk will happen make she will be careful in choosing the result of impulsive nature of the purchasing standard— in our case
sites online. She feels that the trusted online shop and the the Internet, which is far away from the control of online retailers and
most one will decrease the loss risk level. She mentioned consumers. It includes financial risks and security risks. Based on the
that they were cleared enough with the explanation about result of the interviews the respondents also seen that they are aware of
the risk that would be faced when making purchases online, but before
the products provided in the website of the online shop.
they do their online shopping will find out about the site and all matters
They provided every detail about the products, from the relating to products which they would buy even up to the deals that
producer, the number of stock left, detailed pictures, and they would do so as it will reduce the risk that will occur when online
everything related to the product. The site itself provide shopping.
every information needed about the transaction process
CONCLUSION AND RECOMMENDATION
hence they could easily perform the transaction. Conclusion
 Trust and perceived risk affect online shopping, The higher
consumer confidence against an existing site online will make them will
often do online shopping and the smaller the risk thought by consumers
then the greater their decision to make a purchase online.
Recommendation
Online shop must provide security guarantee to the customer
so that the consumer remains loyal to the online stores that are owned
by businessman, so consumer will feel trust and don’t feel cheated and
explain how the provision of shopping, explaining in detail the items to
be purchased by the customer, send the goods using a trusted delivery
service and other appropriate treaty agreement together with the
customer so that no one feels aggrieved.