Analysis of the major challenges affecting the applicant's lack of online shopping in Iran (A conceptual model of E-commerce development in Iran)

Ali Reza, Sayad Sarabestany
2016 unpublished
What is certain is that changes in the interaction between seller and buyer, has not reduced the importance of customer, but in the complex competition between today organizations, customer is of great importance for all producers and service providers. Considering the lack of sufficient development of Internet markets and its low trading volume in Iran, this is a big challenge for Iran's e-commerce companies in order to remove obstacles to attract customers and to increase their sales and
more » ... heir sales and profitability. In spite of numerous factors, this study is tried to present and analyze a conceptual model to examine how the lack of required adequacy in terms of legal aspects, security, privacy, system, as well as customer preferences can influence the reduction of online shopping in Iran. This study assesses theses relationships using the obtained data of Iran's Statistical Center from 15 provinces regarding the status of e-commerce in the workshops. The proposed conceptual model was tested through Structural Equation Modeling (SEM) and according to the research hypothesis was used Partial least squares approach to estimate this model. Results show that effective measures to resolve legal uncertainties, is an essential prerequisite to increase the demand for e shopping. Accordingly, the more the policy makers, planners and business owners focus their attention to review, identify, and remove legal uncertainties and make the internet shopping easy and transparent, equally, the security concerns and privacy of buyers will be resolved, their preferences from face to face transactions to Internet purchase will be changed, and their system adaptability with this sort of trading will be increased. As a result, this can lead to increase the demand of online-shopping. Among these concerns, privacy had the greatest direct impact, and security concerns showed the greatest impact indirectly on the reduction of demand for Internet Purchase in Iran. The results of this study can assist policy makers, planners, and business owners to explain, predict, treat and rehabilitate the reality of e-commerce in Iran and help them in the process of its growth and development.
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