The Data Collection Instrument

Published Date: 02 Nov 2017

The descriptive survey design was adopted for the study. This is because this studysought to find out the risks of disclosing personal information over e-commerce business.A descriptive survey was selected because it provides an accurate representation or explanation of the various elements and characteristics.These characteristics would include such examples as behaviour,opinions, knowledge, abilities,and beliefs of a particular situation, individual,or group. According to Mouton (1996), a survey is used to collect original data for describing a population that is too large to observe directly. A survey helps to obtain information from a population sample bymeans of self-report. Survey design allows the respondents and the sample population to respond to a series of structured and well-designed questions posed by the researcher (Polit&Hungler 1993).

Both quantitative and qualitative approacheswereadopted. According to Burns and Grove (1993), quantitative research is asystematic, formal, and objective process used to test and describe relationships. Quantitative approach is used to determineeffect and cause interactions among different variables. Qualitative research design on the other hand is a subjective and systematic approach useful in describing life experiences and giving them meaning. Qualitative approach is vital in in-depth exploration that helps to gain insight, complexity and richness in the inherent phenomenon.

DATA COLLECTION

Sampling Method

A major determinant of an appropriate sample size is the variability of the population characteristic under investigation. The larger the variability, the larger they require sample size. Another factor affecting the required sample size is the degree of precision desired in estimating a population characteristic. The higher the precision required, the larger the appropriate sample size. Finally, the required sample size is affected by the degree of confidence the researcher or research user demands in estimates. The higher the desired confidence levels in the estimates, the larger the sample size.

Based on the research objectives and the issues to be investigated, it would have been most appropriate if all traders and customersengaged in e-commerce participated. However, due to the time constraints and resource limitations inherent in this study, a non-probability sample of the population was selected. Saunders et al (2007) asserts that a non-probability sample is most often used when adopting a case study strategy. According to Oppenheim (2000), a non-probability sample refers to a sample in which the probability of each case being selected from the total population is not known.The respondents were randomly chosen.

Primary Data Collection

In collecting data that could be analysed using quantitative means, Easterby-Smith et al (2008) claims that researchers could collect either primary or secondary data. He further claims that though each of these means have their merits and demerits, the collection of one’s own data gives control over the structure of the sample and the data obtained from each respondent. It also gives greater confidence that the data collected would match the research objectives.

Data Collection Instrument

Survey Questionnaires were adopted as the data collection instruments. A questionnaire is a printed self-report form designed to elicit information that can be obtained through the written responses of the subjects. Theinformation obtained through a questionnaire is similar to that obtained by an interview, but the questionstend to have less depth (Burns & Grove, 1993).

Data would be collected with the aid of questionnaires to evaluate the sample population’s knowledgeand views on research objectives. Survey Questionnaires are easy to administer, enhances anonymity, have high response rate, and have less biasness.

To limit the weaknesses of questionnaires and ensure validity and accuracy, both open-ended and closed-ended questions were adopted.Theopen-ended questions ensured that the subjects responded in writing thus providing more details, whereas the easy to administer and analyse closed-ended questions had options which weredetermined by the researcher (Burns & Grove, 1993).

RESEARCH STRATEGY

This study adopted a case study strategy in answering the research question. Robson (2002) asserts that the case study strategy would be useful if the aim of the study is to gain a rich understanding of the research perspective and the process being endorsed. Therefore as this study aims to understand the risks of disclosing personal information over e-commerce business, a case study would be most effective.

RELIABILITY AND VALIDITY

Reliability

Polit and Hungler (1993) refer to reliability as the degree of consistency with which an instrument measures the attribute it is designed to measure. The data collection techniques administered to the sample population was used to revealconsistency in responses. Reliability was ensured by minimizing sources of measurement error like data collector bias. Data collector bias was minimized by the researcher’s being the only one who administered the data collection techniques, and standardizing conditions such as exhibiting similar personal attributes to all respondents, for example friendliness and support. Conditions were considered tomaintain privacy and prevent interruptions. Subjects were requested not to write their names on the data collection instruments to ensure confidentiality.

Validity

The validity of an instrument is the degree to which an instrument measures what it is intended to measure(Polit&Hungler, 1993). Content validity refers to the extent to which an instrument represents thefactors under study. To achieve content validity, the instruments used included a variety of questions on theknowledge of correspondents about the research topic, objectives and questions.Content validity was further ensured by consistency in administering the instruments of data collection. The subjects were requested to complete the questionnaires and respond to the questions in the presence of the researcher. This was done to preventsubjects from giving questionnaires to other people to complete on their behalf.

External validity was ensured. Burns and Grove (1993) refer to external validity as the extent to whichstudy findings can be generalized beyond the sample used. All the persons approached to participate in thestudycompleted the questionnaires. No single person who was approached refused to participate.Generalizing the findings to all members of the population was thereforejustified.Seeking subjects who are willing to participate in a study can be difficult, particularly if the study requiresextensive amounts of time or other types of investment by subjects. If the number of the personsapproached to participate in a study declines, generalising the findings to all members of a population is not easy to justify. The study was well planned to limit the investment demands on subjects in order toincrease participation.As the percentage of those who decline to take part in the study increases, external validity decreases (Burns & Grove 1993:270).

ETHICAL CONSIDERATIONS

Integrity, honesty, expertise and diligence are key ingredients in conducting of research. This is useful to protect and recognise the ethics and human rights of the respondents. The key ethical consideration observed in this study included anonymity, informed consent, confidentiality and rights to self-determination. Written permission and respondent’s consent were obtained prior before the respondents responded to the research instruments. Burns and Grove (1993)define informed consent as the prospective respondent's agreement to participate voluntarily in a study, whichis reached after assimilation of essential information about the study. The subjects were informed of theirrights to voluntarily consent or decline to participate, and to withdraw participation at any time withoutpenalty.Subjects were informed about the purpose of the study; the procedures used to collect thedata, and assured that there were no potential risks or costs involved.

Anonymity and confidentiality were observed and maintained throughout the study. Burns and Grove (1993) defineanonymity as when subjects cannot be linked, even by the researcher, with his or her individual responses. In this study anonymity was ensured by not disclosing the respondent’s name on the data collection instruments, research reports and detaching the written consent from the questionnaire.In this study, confidentiality was maintained by keeping the collected data confidential and not revealing the subjects’ identities whenreporting the study (Burns & Grove 1993). No identifying information was entered onto the data collection instruments, and the instrumentswere only numbered after data had been collected (Polit&Hungler1995:139).

The ethical principle of self-determination was maintained. Subjects were treated as autonomousagents by informing them about the study and allowing them to voluntarily choose to participate or not. Scientific honesty is regarded as a very important ethical responsibility when conducting research.Dishonest conduct includes manipulation of design and methods, and retention or manipulation of data(Brink 1996). The researcher tried to avoid any form of dishonesty by recording truthfully the answers given during interviews.

ANALYSIS OF RESEARCH FINDINGS

For the purpose of the proposed Survey, the researcheranalysed the data so as to obtain percentages, mean scores, and other descriptive statistics which assisted in satisfying the purpose of the study. Bar charts, graphs, and pie-charts were all used to diagrammatically depict the results in a more reader-friendly manner.

QUESTIONNARE

My name is Paulo Jose I'm doing research in the e-commerce area. in order to recognize users' practices with respect to disclosing personal information over e-commerce business , they were asked the following questions via the questionnaire:

Thank you for participating in this survey. The information will be kept confidential. ________________________________________________________________

.

Name ______________________________________________________

 

 

2.

2. How old are you? ______________________________________________

 

 

3.

3. What your gender? Male Female

4.

4. What is your occupation? ________________________________________

 

 

 

5.

5. Are E-commerce participants likely to falsify more rather than less sensitive form of information as a means to guard their privacy?

 

Yes No

6.

6. Have you ever been defrauded as a result of disclosure of personal information?

 

 

Yes  No

.

7. If yes, how severe were the damages?

 

 

 Very Less

Severe Severe

 

 

 

 

8.

8. After being defrauded, did you change your log in details?

 Yes NO

 

9.

9. If yes, did it solve the problem?

 

 

 Yes NO

1

10. What are the circumstances of disclosing personal information?

 

 

 Business Purpose

 

 

 

 

111.

If for social purposes do you provide personal information to unreliable sites?

 

 

 Yes NO

112.

Have you ever submitted your personal information to a service you did not subscribe for?

 

 

 Yes NO

113.

If yes, did it lead to any kind of damages?

 

 

 Yes NO

114.

Do you know where to report disclosure of personal information breach or fraud?

 

 

 Yes NO

115.

If yes, do you report the cases to your online service provider?

 

 

 Yes NO

116.

If yes, do they compensate for the damages caused as a result of disclosing your personal Information?

 

 

 Yes NO

17. If yes, do you still use the service?

 Yes NO

18. What is the scale of general knowledge on disclosure of personal information?

Very Informed Less informed

Informed None

19. Do you think the disclosing personal information can affect the business?

Yes No

20. Do you authorize your personal details be passed to third party companies?

Yes No

RESULTS AND FINDINGS

AIMS AND OBJECTIVES OF THE STUDY

Individuals, businesses, trader and the society as a whole have suffered a number of consequences as a result of disclosing their personal information in the event of e-commerce transactions. The study was entitled: "What are the risks of disclosing personal information over e-commerce transactions?" The study tried to investigate and identify the risks that businesses, trader, individuals, and society are exposed to due to disclosing their personal information.

The objectives of the study included:

Aims and Objectives

To investigate the individual risks of disclosing personal information over e –commerce business transactions.

To investigate the businesses risks of disclosing personal information during e -commerce transactions.

To investigate the government risks of disclosing personal information over e-commerce businesses

To investigate the overall risks to the economy and the society as a result of disclosing personal information during e-commerce transactions.

To identify the effects of disclosing personal information in e-commerce business

To meet the objectives of the study, the researcher collected data from respondents using structured questionnaires.

Research Question

The research questions to be answered by this research work contain the following:

How does the issue of disclosing personal information affect e-commerce business?

What are the causes for disclosing personal information in the e-commerce industry?

How the problems affecting e-commerce business are solved

Hypothesis

Individuals are exposed to risks such as fraud and theft as a result of disclosing their personal information to facilitate e-commerce businesses.

Disclosing of personal information can results into various security and financial risks to businesses hence reduce their profitability.

Governments are exposed to various security, terror, and fraud risks as a result of disclosing personal information in the facilitation of e-commerce.

The economy and the society will be exposed to risks such as unemployment, low investments and low savings as a result of risks associated with disclosing of personal information to facilitate e-commerce.

RISKS OF DISCLOSING PERSONAL INFORMATION OVER E-COMMERCE TRANSACTIONS

Of all the business people and individuals involved in the study had at one time suffered risks in disclosing personal information over e-commerce transactions most of which result from security of the media and those related to non-face-to-face and possible anonymous communication.

General Risks

It was found that among the general risks related to electronic transactions should be identified and controlled in order to enhance the integrity in e-commerce. Without proper controls, electronic transactions and documents can be easily changed, lost, duplicated, and incorrectly processed, thereby, causing disputes on terms of transactions and related payments.

It was found that most e-commerce transactions have not enhanced security with information technologies. Encryption helps prevent consumer personal information, such as credit card numbers and other vital information, from being intercepted and stolen during transmission. Firewalls and other security practices help protect customer information residing on the seller’s computer system from being intentionally or unintentionally disseminated to or being accessed by unauthorized third parties. Other standard controls on business functions of an information system also help to guarantee the accuracy of business transactions.

Supplier Risks

To suppliers, it was found out that e-commerce does not require face-to-face or person-to-person communication to facilitate business transactions. The anonymity of e-commerce and the ease of establishing an identity for online transactions can disguise the buyer’s identity from the seller. But sellers want to protect against consumer frauds where customers deny (or repudiate) that they placed an order and/or use of the names of others (Swisher 1998). Consequently, sellers tend to ask consumers information on their identities such as real names, demographic information, postal addresses, telephone number, e-mail addresses, and credit information.

In e-commerce transactions, some information gathering or tracking is normally in place when a user logs onto the Internet and navigates through the Web. The information can be collected directly from user who voluntarily provides when registering at the site or signing a guest book. Information on user can also be collected indirectly through the browser when user connects to the site or through a cookie file. Most information collected online is usage data on where user goes and how much time he/she spends at an individual site. Online service providers usually track sign-on and sign-off times for billing purposes. In principle, personal identifiable information is not gathered secretly. Although a code in a cookie file enables the site to label a particular user, it does not identify user buy name and address unless a person has provided the site with such information or set up browser preference to do so automatically.

However, collected information has not been used only to protect the business against losses from bad transactions. Most sellers sell the information on their clientele as a mailing list to other marketing services. This practice raises the issue on the privacy of e-commerce.

Consumer Risks

The ease of establishing an entity on the Internet poses the same risk to consumers as to sellers. Virtually, anybody can set up a Web site to conduct business in e-commerce. The appearance of a business on Internet can be deceiving, as one cannot evaluate a business performance based on well-designed electronic front store. Consumers do not know much about the history of a particular e-commerce business among multitude of online suppliers. On the Internet, consumers lack many of the traditional cues such as physical, brick-and-mortar front store, and person-to-person contact to build their trust in a business.

Consumers perceive that online businesses now have more opportunities to make use of consumers’ personal information with sophisticated tools for collecting and data mining that information. Many sites are asking consumers to provide detailed personal information online. A number of sites are collecting information from consumers without their knowledge or permission. Some sites are providing access to personal information to others without proper authorization. There is a potential for misuse and/or abuse of consumer information by online business. Consequently, consumers are reluctant to provide their personal information, as they tend to mistrust the security of transaction over Internet. In addition, they are concerned about how to complain about the inaccuracy, incompleteness and unauthorized use of personal information.

Consumers are also concerned about the assurance on the fulfilment of sales obligation by the supplier in terms of quantity, quality, delivery and cost, the ability to verify their order status, term of delivery, warranties and return policy. In addition, they are concerned about complaints on the sales and after-sales services

In the study, 88% of the respondents said that they are somewhat or very concerned about privacy. Although 76% believed that technology would make their lives easier and more convenient, consumers are still wary of providing sensitive information online. 73% said they were uncomfortable in providing credit card information, 73% were uncomfortable in providing other financial information, and 70% were uncomfortable in providing general personal information. When asked if they had ever had a problem online with fraud or unauthorized use of their personal information, 7% of respondents from the above survey said yes, related to the use of their credit card information and other financial information online.

Consumers express strong concerns regarding privacy over the Internet: want to limit and control the spread of their information, see privacy and security as interrelated and overlapping issues, and generally are less willing to disclose more sensitive personal information to businesses they are not familiar with. Consumers also recognize that they have only weak control over dissemination of their personal information. Their willingness in providing personal information and engaging in e-commerce transaction is usually based on a subjective assessment of trust.

The most common practice in case of doubt is either opting-out or disguising their identity. For example, 42% of consumers refuse to give registration information and 27% sometimes falsify information because of privacy concerns. Consumers generally disclose more information to businesses they have established relationship or are familiar with. They are less comfortable disclosing information to businesses they do not know well, particularly very sensitive information. If a site discloses its privacy practices, up to 18% of respondents would give information that they otherwise would not disclose.

Consumers indicate they would increase the depth and breadth of their Internet activity in responding to a privacy disclosure and assurance program. Assurance of non-dissemination of personal information would have a significant impact, increasing consumer willingness to participate in e-commerce by a factor of 2 to 3. Disclosure of privacy practices alone would have a more limited impact, increasing consumer willingness to participate by approximately 50%.

Some of the key issues that result in risks in disclosing personal informationover e-commerce transactions include:

Accountability: An organization is responsible for personal information under its control and shall designate an individual or individuals who are accountable for the organization's compliance with the following principles.

Identifying Purposes: The purposes for which personal information is collected shall be identified by the organization at or before the time the information is collected.

Consent: The knowledge and consent of the individual are required for the collection, use or disclosure of personal information, except where inappropriate.

Limiting Collection: The collection of personal information shall be limited to that which is necessary for the purposes identified by the organization. Information shall be collected by fair and lawful means.

Limiting Use, Disclosure, and Retention: Personal information shall not be used or disclosed for purposes other than those for which it was collected, except with the consent of the individual or as required by law. Personal information shall be retained only as long as necessary for the fulfilment of those purposes.

Accuracy: Personal information shall be as accurate, complete, and up-to-date as is necessary for the purposes for which it is to be used.

Safeguards: Personal information shall be protected by security safeguards appropriate to the sensitivity of the information.

Openness: An organization shall make readily available to individuals specific information about its policies and practices relating to the management of personal information.

Individual Access: Upon request, an individual shall be informed of the existence, use and disclosure of his or her personal information and shall be given access to that information. An individual shall be able to challenge the accuracy and completeness of the information and have it amended as appropriate.

Challenging Compliance: An individual shall be able to address a challenge concerning compliance with the above principles to the designated individual or individuals accountable for the organization's compliance.

Representations from the survey

Are E-commerce participants likely to falsify more rather than less sensitive form of information as a means to guard their privacy?

Have you ever been defrauded as a result of disclosure of personal information?

If you have ever been defrauded as a result of disclosure of personal information, how severe were the damages?

After being defrauded, did you change your log in details?

Did the change of the login details solve the problem of being defrauded?

What are the circumstances of disclosing personal information?

If for social purposes do you provide personal information to unreliable sites?

Have you ever submitted your personal information to a service you did not subscribe for?

Do you know where to report disclosure of personal information breach or fraud?

What is the scale of general knowledge on disclosure of personal information?

DISCUSSIONS

Aims and objectives

To investigate the individual risks of disclosing personal information over e –commerce business transactions.

To investigate the businesses risks of disclosing personal information during e -commerce transactions.

To investigate the government risks of disclosing personal information over e-commerce businesses

To investigate the overall risks to the economy and the society as a result of disclosing personal information during e-commerce transactions.

To identify the effects of disclosing personal information in e-commerce business

Research Question

The research questions to be answered by this research work contain the following:

How does the issue of disclosing personal information affect e-commerce business?

What are the causes for disclosing personal information in the e-commerce industry?

How the problems affecting e-commerce business are solved

Hypothesis

Individuals are exposed to risks such as fraud and theft as a result of disclosing their personal information to facilitate e-commerce businesses.

Disclosing of personal information can results into various security and financial risks to businesses hence reduce their profitability.

Governments are exposed to various security, terror, and fraud risks as a result of disclosing personal information in the facilitation of e-commerce.

The economy and the society will be exposed to risks such as unemployment, low investments and low savings as a result of risks associated with disclosing of personal information to facilitate e-commerce.

Discussion on the findings

Many consumers and vendors are adopting internet in business transactions. This is basically due to the convenience and advantages of electronic commerce (e-commerce). Consumers increasingly purchase products from online vendors. The business transactions are continuously based on information transmitted via the internet. Vendors and businesses use online platform in the collection and gathering personal information from both the existing and prospective consumers. The study revealed that the manner in which consumer information is collected, gathered and used is posing privacy and security concerns to consumers. These concerns relate to the risks associated with personal information disclosure.

Risks of disclosing personal information over e-commerce transactions

The study reveals that personal information gathered relates to the age, gender and e-mail addresses. The study also revealed that remote access to goods poses risks regarding e-commerce as consumers are required to disclose personal information online. Furthermore, these risks entail an invasion of consumer’s privacy. The study revealed that personal information disclosure pose grave risks, especially when such information is either disclosed accidentally or when unauthorized third parties gain access to it. Even in cases where businesses/ vendors use personal information lawfully, consumers often contend with a loss of privacy while transacting online. Therefore, consumers have to consider the trade-off between a perceived loss of privacy and purchasing products online.

The study revealed that there are multiple risks posed by personal information disclosure. One such risk involves the interception of consumers’ payment information before it reaches the seller. This may occur when an attacker hacks into a seller’s system. For instance, personal information could be used to transact business by third parties without the customer’s consent, thereby posing financial risks. Additionally, businesses may disclose or sell personal information to outsiders in an effort to make a profit. For instance, marketers may purchase email addresses and later use them to send unsolicited emails to potential customers- a clear violation of individual privacy.

The study also revealed that, identity theft may occur as an individual’s personal information is disclosed to fraudsters who may then impersonate a customer. This could lead to financial risks or even litigation as outsiders may use ones identity to commit crimes. In fact, personal consumer information is commonly treated like a commodity that can easily be traded. Additionally, personal information disclosure increases the risks of internet crimes. Such crimes do not just affect individuals, but also businesses, the society and economy at large.

The study further found out that, online vendors take advantage of consumers’ personal information. For instance they may charge consumers twice based on their credit cards. Such a vice occurs due to the inadequacy of legal frameworks to protect consumers online. Moreover, consumers risk not receiving products they pay for when they deal with malicious traders or they may receive lower quality products. Therefore, the inability to verify the quality of products prior to purchase poses risks to consumers. The study revealed that perceived risks associated with e-commerce, especially in relation to information storage, use or disclosure by businesses poses privacy concerns to consumers. Furthermore, given the grave consequences of identity theft, unsolicited emails and the risk of personal financial loss, consumers are bound to lose trust in online vendors and thus shun online transactions.

Impact of personal information disclosure on e-commerce businesses

The study found out that businesses depend on information gathered online from consumers in developing marketing strategies. Such information also facilitates the development of targeted approaches to enhancing consumers’ online purchases, which inevitably translates to higher profits. Such information also facilitates authentication of consumers (in relation to their identity) and can help businesses to personalize their products to consumer needs. As a result, in order to transact online, consumers have to disclose their personal information.

The study further revealed that firms adopt various approaches to gather consumer information. While directly soliciting consumers for their personal information provides a valuable resource, firms also adopt indirect approaches to gather personal data. For instance, by using cookies (online applications stored in a user’s computer) businesses can tract consumer behaviour and even acquire some personal information from them. As such, the inability to control the manner in which businesses source for consumer information is one of the issues lowering consumer confidence in e-commerce. Moreover, rising competitive pressures force firms to pursue various strategies to enhance their online presence- a factor that raises various risks to such firms. Therefore, the rapid advances made by the internet and the rise in competition among businesses provide a rationale for evaluating possible risks to personal information provided to business entities.

The study revealed that although personal information is an avenue to increase a firm’s revenue, it also pose risks resulting from privacy concerns among consumers. Inefficiencies in encryption policies by businesses and network security concerns among consumers lower their willingness to disclose personal information online. These issues pose various risks to businesses. A slump in consumer confidence due to privacy concerns can negatively affect a firm’s efficiency and increase operating costs. An e-commerce business therefore risks losing its reputation due to personal information disclosure.

Further, the reduction in online consumer presence may compel firms to invest more in physical stores, which are more expensive to maintain than virtual stores. Since the internet promotes organizational efficiencies, when consumers lose confidence in e-commerce initiatives by firms, it is likely to result in lower sales, lower profits (the main motivation for operating a business) and reduced market penetration of the firm’s products. Inevitably, these factors would affect the firm’s competitiveness and financial position.

The study also found out that the lack or inadequacy of formal regulations governing online privacy in certain countries further compound the risks in e-commerce transactions. Firms in such countries are therefore likely to gather consumer information and disclose it to third parties. As a result of such privacy concerns, consumers are unlikely to submit their personal information to online businesses. The study further revealed that the reason that consumers may opt to partially do away with online transactions or even completely shun e-commerce. Privacy violations deter consumers from online transactions. It is also important to point out that such violations occur when malicious firms fail to adhere to their privacy policies.

The study revealed that the risks posed to businesses as a result of personal information disclosure shows that there is need to take steps in order to assure consumers of their security. The security of the internet plays an important role in enhancing consumer confidence in e-commerce transactions. The consumer security rests with e-commerce enterprises. Firms should therefore adopt technological safeguards in an effort to reduce the risks associated with personal information disclosure.