Abstract:

It is recognized that recommendations by a family member, friends and endorsement by a third party play an important role in developing trust in E-Commerce. Past studies have shown that this is mostly true for buyers across the world but no similar study was conducted in Saudi Arabia; hence we do not know yet if this has the same effect. Little attention has been paid to testing the effect of online shopping recommendations by family member, friends and third parties. The present study will attempt to answer the question on whether such recommendations and endorsements affect the decision making process on whether to engage in E-Commerce transactions. Quantitative data was gathered from 606 Saudis who live all over Saudi Arabia. 4 factors related to ‘recommendation by a family member, friends and endorsement by a third party’ are tested. The early results of this study has shown that similar patterns as in other countries are observed in Saudi Arabia and that rrecommendations by family members, friends and third party endorsements will are influencing factors in buying online in Saudi Arabia and they positively support customers to develop their trust on online environment.