Background of the Study
Ethical business practices are crucial in fostering trust, particularly in the rapidly growing e-commerce sector. In Taraba State, where internet penetration is increasing, e-commerce platforms face challenges related to transparency, data privacy, and consumer rights (Bello et al., 2023).
Trust is the foundation of customer loyalty and retention in e-commerce, where buyers often rely on digital transactions. Ethical practices, such as honest advertising, secure payment systems, and responsible handling of personal data, enhance credibility and competitive advantage (Adebayo & Musa, 2024). This study explores the relationship between ethical business practices and customer trust in Taraba State’s e-commerce sector.
Statement of the Problem
Many e-commerce platforms in Taraba State grapple with low customer trust due to unethical practices like hidden charges, poor customer service, and data breaches. These issues undermine their growth potential and competitiveness (Ibrahim & Yusuf, 2023).
While extensive research exists on e-commerce ethics globally, limited studies address this topic within the Nigerian context, particularly in Taraba State. This study seeks to bridge that gap by evaluating the impact of ethical practices on customer trust.
Objectives of the Study
To examine the relationship between ethical business practices and customer trust in e-commerce platforms in Taraba State.
To identify ethical practices that significantly enhance customer trust.
To propose strategies for promoting ethical business practices in e-commerce.
Research Questions
How do ethical business practices influence customer trust in e-commerce platforms in Taraba State?
What ethical practices significantly enhance customer trust?
What strategies can promote ethical business practices in e-commerce platforms?
Research Hypotheses
Ethical business practices do not significantly influence customer trust in e-commerce platforms in Taraba State.
Ethical practices do not significantly enhance customer trust.
Strategies to promote ethical business practices do not significantly improve customer trust.
Scope and Limitations of the Study
The study focuses on e-commerce platforms operating in Taraba State, analyzing the impact of ethical practices on customer trust between 2015 and 2025. Limitations include potential bias in self-reported customer perceptions and variability in ethical standards.
Definitions of Terms
Ethical Business Practices: Actions aligning with moral principles in business operations.
Customer Trust: The confidence customers have in a company’s reliability and integrity.
E-Commerce Platforms: Online marketplaces facilitating the buying and selling of goods and services.
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