Which of the following best describes the challenge faced by e-commerce businesses?

Prepare for the SQA Higher Business Exam with our comprehensive quiz! Utilize flashcards and multiple-choice questions, each complete with hints and explanations, to ensure you’re ready to ace your exam.

The correct choice highlights a significant challenge for e-commerce businesses, as concerns about security play a critical role in consumer trust and purchasing behavior. In an online environment, customers may hesitate to share personal and financial information due to fears of data breaches, fraud, or identity theft. E-commerce businesses must therefore invest in robust security measures, such as encryption, secure payment gateways, and transparent privacy policies, to reassure customers and build confidence in their platforms.

Addressing security concerns is crucial because it directly impacts a customer's willingness to make a purchase. If a business can demonstrate that it prioritizes data protection and employs industry-standard security practices, it is more likely to convert visitors into paying customers and foster long-term loyalty. In contrast, addressing this challenge effectively can differentiate a reputable e-commerce company from those that fail to recognize its importance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy