Posted: February 15th, 2022
University Name
Does the reputation of online businesses affect customers’ willingness to undertake online transactions in the UK?
The case of Amazon
Student’s Name
Course Name and Number
Professor Name
Paper Due Date
Introduction
The internet and other technology advancements opened the door to e-commerce in the early 1990s, and companies began to take note of the new opportunities. People all across the globe are becoming reliant on the internet, and more and more of their purchases of products and services are being made online (Santos et al., 2017). Consumers have reaped several advantages from online purchasing, including cost savings, time savings, and easy access to a wide range of information sources. It has also introduced a great deal of ambiguity, ranging from the need to provide personal information to the management of the delivery process. Individuals are less inclined to purchase items online if they do not feel secure doing so, according to Koufaris and Hampton-Sosa (2003). Specifically, this research will examine and identify the online services supplied by online merchants that can influence consumers’ buying choices before they make a purchase.
When people used to buy products off the shelf at a store, it gave traditional brick-and-mortar firms a lot of power to learn about and modify consumer behaviour and preferences. Nowadays, people buy things online. Businesses find it more challenging to maintain their competitive advantages as e-commerce, mobile purchasing, and intelligent technology become more prevalent. From the perspective of value creation, we examine how digitization has resulted in the demise of institutional retailing as the primary point of consumer engagement. This study discusses five new forms of value generation that we believe will help the competition for this interface develop and alter in the following years. I also give recommendations on how these sources of value generation may be used to benefit the organization. Depending on how essential new sources of value-generating are in the process, stationary retailing may be the most crucial contact point in a multichannel decision trip (in various buying scenarios). With the widespread availability of branded-product platforms, such as connected gadgets and online purchase platforms, this power is distributed to a wider variety of individuals. Recognizing and accepting responsibility for one’s role in developing eco-systems is critical for everyone participating in this challenging battle.
Literature Review
Businesses operating on the internet had to cope with various issues, including consumers who did not trust company to consumer (B2C) connections and those who did not trust brands (Lee et al., 2007). According to (Broutsou and Fitsilis, 2012), a firm’s brand image and reputation are critical in attracting clients and making them more ready to engage in e-transactions, even if they have never done business with the company before. Because online transactions are not visible, there is no direct relationship between the vendor and the buyer between them. If the customer does not have confidence in the supplier, they will not purchase from them (Parvin et al., 2011).
Recently, OCRs have been seen as a sort of electronic word of mouth (eWOM) communication that has the potential to influence client behaviour (eWOM communication) (Chatterjee 2001; Chen & Xie 2008; Lee et al. 2011). In addition, it differs from eWOMs in several aspects. To begin with, eWOMs may be created by both customers and marketers, while OCRs can only be made by consumers and marketers (Cheong & Morrison2008). People who use social media sites such as Facebook and Twitter also have a great deal of control over who may view the information that they share with them. They are also often seen on e-commerce websites such as eBay and Amazon, where customers may get them free of charge. Finally, eWOM material is usually sent directly to the individuals who want it, such as via Twitter.com.
On the other hand, OCRs are made available to the public (Clare 2012). Even though there are many variances, Bae and Lee (2011) believe that OCRs may be viewed as electronic word of mouth in some situations. Because online transactions do not take place in person, the amount of risk and uncertainty is increased significantly. For example, trust is vital in partnerships when the trustor has little influence over the trustee’s activities, according to Jarvenpaa et al. (1999). As a result, trust is vital in the internet business world, and it should not be overlooked. Hsu and colleagues argue that more trustworthy product information is required to simplify individuals to purchase products on the internet (2013). OCRs provide this information, which is considered reputable and dependable by the public (Bickart and Schindler, 2001). According to Bickart and Schindler (2001), information about items posted in online discussion forums has a more significant influence on consumers than information about products that merchants provide to individuals about their products.
Consequently, OCRs are regarded as capable of increasing client confidence (Baek et al., 2012). It is believed that people sharing information and their own experiences in online communities can help build trust between members (Flavian & Guinalu 2005; Hajli & Khani 2013; Zhao & Lavin 2012). According to a 2007 eMarketer report, consumers place more excellent value on review websites than they do on expert advice. Furthermore, Hajli and Khani (2013) demonstrate that social word of mouth increases people’s likelihood of purchasing new items. In their paper, Awad and Ragowsky (2008) argue that the quality of online word-of-mouth is critical before consumers have trust in e-commerce, and Chen (2011) agrees.
Furthermore, the trust may be conveyed in online groups, according to Stewart (2003). Lee et al. (2011) stated that confidence might be transmitted from a trusted source to an unknown target if the latter is connected to a trustworthy source. Consequently, OCRs may encourage individuals to place more confidence in an e-vendor since they are posted by someone who has gone through the same experience as they are and because they are often regarded as reputable and trustworthy sources. It has also been discovered that a website’s social presence, which can be achieved via OCRs, is associated with consumer confidence (Kumar & Benbasat 2006). (See, for example, Choi et al. 2011 and Gefen and Straub 2004.)
Consider internet reviews to be a kind of digital word-of-mouth. This will assist you in developing a theoretical foundation for how to approach them (WOM). Consumers that post product reviews and engage in other forms of online consumer-to-consumer engagement are referred to as “online word-of-mouth” in certain circles (Dellarocas 2003; Godes and Mayzlin 2004). Marketing literature may still be helpful even if traditional and online word-of-mouth is vastly different in communication channel, structure, and size since digital technologies have not altered the essence of online WOM as a potential motivator of customer behaviour. In a study on word-of-mouth marketing, it is often mentioned that bad WOM may have both good and negative consequences (e.g., Berger et al. 2010; Herr et al. 1991; Richins 1983). Even though it seems that negative word-of-mouth would harm sales and a company’s image, past research has shown that there is a great deal of ambiguity about the link between negative evaluations on the internet and sales. For example, Basuroy et al. (2003) discovered that negative movie critic reviews harmed box office sales. Similarly, Dellorocas et al. (2007) found that user evaluations on Yahoo! Movies discussion forums were a good indicator of quality. Both Liu (2006) and Duan et al. (2006) obtained their information from the same Yahoo! Movies database.
Rather than focusing only on the artificial and direct link between reviews and revenue, the discrepancies in this data show that we should prioritize word of mouth and its repercussions above money. What impact do online reviews have on customers? A new study has begun to investigate the question of “How do buyers comprehend internet reviews and why?”, people who purchase in electronic marketplaces may look to reviewers’ personal information when judging the worth of online ratings (2008). Studying review data from four national Amazon sites (the United States, the United Kingdom, Germany and Japan), researchers discovered variations in review variance and helpfulness across reviews from various Amazon sites. As much emphasis has been paid to negative word of mouth in marketing literature, little study has been done to determine how bad a poor review is and how essential it is to a prospective online client. Interpersonal assessment theory, a notion from social psychology, serves as the theoretical underpinning for this investigation. According to the study, hostile critics are more intelligent than positive critics (Amabile and Glazebrook 1982; Amabile 1983; Gibson and Oberlander 2008). As part of a broader idea developed in the psychology literature, people have a general propensity to pay greater attention to negative things due to both inherent predispositions and life experience. This follows the proposed hypothesis. When it comes to this particular field of research, Rozin and Royzman (2001) go into considerable length. Positive predisposition: According to interpersonal assessment theory, negativity bias is prejudice against individuals rather than a bias against the information they provide. Specifically, the idea states that a negative assessment of a stimulus item is more likely to lead others to believe that the evaluator is intelligent and “knowledgeable,” even if they do not like the evaluator personally (Folkes and Sears 1977). According to some researchers, the negativity bias is produced by the belief that negative assessments are more diagnostic than positive evaluations, which indicates that they include more unique information than positive evaluations. The converse is true: when an assessor is positive, it demonstrates that they aren’t very skilled at analyzing situations (Skowronski and Carlston1989). It worsens when there is high-quality information in the negative assessment, such as when the review is well-thought-out and carefully recorded since the bias becomes even more vital (Ambile 1983). As an example of how the interpersonal evaluation theory may be applied to information items, we can claim that individuals have a negative bias when making judgments regarding online customer reviews because they believe they are unfavourable. As a result, critical evaluations are more likely than positive ratings to be seen as intelligent and valuable in providing essential information to the reader. Useful information assists the individual who owns it in making better judgments.
According to Feldman and Lynch (1988) and Herr et al. (1991), information diagnosticity is a kind of diagnostic ability. Online marketing research found that people who don’t know much about a product or service are more inclined to hunt for negative reviews about it (Herr et al., 1991). The implied intelligence in negative words indicates that additional knowledge may be available that may assist the customer in making a more informed choice (Dowling and Staelin 1994; Kim et al. 2008). Customer reviews on retail websites are often neutral rather than negative or positive. Unlike other online retailers, such as eBay or Walmart, Amazon reviews are divided into two parts: written content and a numerical score (represented by several stars) that indicates how excellent or bad the check is in general. We begin each review by assigning a star rating ranging from one to five (1 being extremely harmful and five extremely positive). People that offer a review of two, three, or four stars are often in the middle of the road and have conflicting emotions. There’s no consideration for how tiny the negative is in the theory of interpersonal assessment, and there’s no consensus among academics on whether product reviews are two-sided or not. Reviewers on Amazon who gave extraordinarily high or low star ratings were found to be less helpful than reviewers who gave middle star ratings, according to Mudambi and Schuff (2010). The authors of Forman et al. (2008) discovered that moderately rated book reviews on Amazon were less valuable than highly rated evaluations.
When compared to severely negative reviews, we believe that reviews with a mixed attitude are more likely to provide more balanced assessments of items and provide readers with more information about the products’ merits and drawbacks. As a consequence, the following hypothesis has been advanced: H1. Customer reviews may seem to be of little value due to this, depending on how you read them. It’s the opposite way around in this case. People do not believe that unfavourable views are worth as much as negative opinions that are not as nasty as they may seem to be. Of course, the monetary worth of evaluations is not the sole factor in determining how beneficial they are seen to be. A review may be helpful only if the information included within it is reliable and can be accessed by many individuals. A well-written review is more likely to be beneficial because it reduces the amount of cognitive effort the reader needs to absorb the information and raises the review’s credibility, increasing the likelihood that the review is helpful. Long-standing information presentation study has shown that how information is presented, such as how clear and precise the writing is, may significantly influence whether or not the reader believes the information is trustworthy (Fogg et al. 2003; Metzger 2007). In Amabile (1983), a researcher who worked on the interpersonal evaluation theory, it was shown that when a negative evaluator’s stated intelligence was discussed in-depth, the negative evaluator’s purported intelligence was more likely to be accurate. The likelihood of a compelling online review increases if the review is well-written and contains valuable information. A recent study by Ghose and Ipeirotis (2010) discovered that the readability and accuracy of Amazon reviews are related to how helpful they are to the reader. With an increase in the number of spelling errors, people’s expectations of the quantity of assistance would rise.
Mudambi and Schuff (2010) investigated the review depth factor, which can be assessed using the proxy variable “word count” in the context of peer review. According to the researchers, more thorough evaluations are frequently more beneficial for both search and experience items, and this is true for both. Consequently, we assert that the quality of reviews may influence people’s perceptions of the importance of reviews: H2. It is less likely that negative bias will impact how essential reviews are rated because of how excellent they are. H2a. Because they are more helpful, reviewers believe that reviews with a high readability score are superior to reviews with a low readability score, according to the data—H2 b. As a result, lengthier reviews are considered superior to shorter ones since they are more valuable.
Research objectives:
Methodology
The purpose of this research is to understand how customers in the United Kingdom perceive internet service providers. The use of quantitative methods will accomplish this. According to prior research, 500 surveys are expected to be completed. After the data has been collected, structural equation modelling (SEM) will be utilized to analyze it. When it comes to market research, SEM is a powerful tool often used to ensure that models are correct. In this research, a statistical tool is known as structural equation modelling (SEM) will be used to examine how well the model performs and how the latent variables are connected. Initial checks will be made to ensure that the relationships between the variables are accurate before moving on. The second step will be to do a route analysis. A linear equation system will be used to examine the connections between variables in this study.
The Books section of Amazon.co.uk was chosen for this study because negative bias is infamous in books, and online reviews are highly valued in the publishing sector. However, our study is more similar to previous research since Amazon book reviews have been a prominent research source. Our study is more similar to others since we used Amazon book reviews as a source of information. Because Amazon book reviews have traditionally been a common research source, our study is more similar to past studies in the field. Fiction and nonfiction books are real experience commodities in that readers can only make an honest evaluation after reading the book. Neither of these genres has a huge quantity of romance, crime, and mystery novels. This approach was used to assess customer reviews for these three categories. Between May 28 and June 16, 2010, an automated crawler used the Amazon web services API to discover 18,672 customer reviews for 852 different books (after cleaning up duplicates such as hardcover and paperback for the same book). Amazon then removed users without ASINs or reviews with less than five helpful votes from other customers (following Kim et al. 2006). We looked at the 7659 reviews for 776 novels in the final dataset we used for the following investigation. We compared the numerical value of each review on Amazon’s 1-5 star system to the total rating. We also read the review text for each one. Each review is given a numerical star rating (1-5) that reflects how negative or positive it is, with one being the most negative and five being the most favourable. As previously said, readability and length are two factors considered. We got our data from We counted the words in each review to see how long they were. The Flesch Reading Ease (FRE), a well-known readability measure, was used to assess the review’s readability. It was used to rate the review’s readability (Flesch 1948; Kincaid et al. 1975). In addition to the FRE, the Coleman-Liau index and the Automated Readability Index were employed to assess review readability. Use the most recent version of your computer’s “style” command to test your reading abilities. A posthoc bivariate correlation test revealed that these index scores were quite similar. Because multicollinearity is a concern, we solely used FRE scores in the following regression analysis. We determined the FRE score for each review as follows: The frequency of occurrence (FRE) is 206.876 for phrases with 1015 words and 84.6 syllables. Their roots are in the English language’s standard source entropy. During the review text creation process, we utilized GNU style commands to determine the FRE variables, total words, and total syllables (total syllables and total words). The FRE score ranges from 0 to 100. The bigger the number, the easier it is to interpret. They are sometimes censored. A text with an FRE score of 0-30 indicates that the work is very challenging, while a score of 60-70 indicates that the work is suitable for everyone. Amazon has a feature at the bottom of each review that allows readers to score the review by answering “Yes” or “No” to a question such as “Was this review useful to you?” This is the variable that is reliant on our model. Votes are shown at the top of each review as “[number of “Yes” votes] out of [total votes] found the following review useful,” with the number of “Yes” votes indicating how beneficial the review was. The results of this poll are shown at the top of each review (see the screen capture in Figure 2 for an example). For the most part, we estimate how valuable a review was by looking at the proportion of reviewers who thought it to be helpful.
Total-items-total-items-total-items-total-items-total-items-total-items-total-items-to
correlation
Cronbach’s
alpha
0.874 Utility Perceived
As a consequence of internet customer evaluations, my online purchase performance increases. 0.682
Customer evaluations on the internet assist me in making more effective online purchases. 0.650
When it comes to purchasing, internet user evaluations increase efficiency.
Online.
0.710
I find it advantageous to consult online customer reviews. 0.640
Customer evaluations on the internet make purchasing online simple for me. 0.724
Customer reviews on the internet assist me in searching for and locating what I’m looking for.
specifics on the goods
0.600
Thanks to internet customer reviews, I am able to complete my task more rapidly.
Quickly.
0.600
0.815 Ease of Use Perceived
Utilizing internet consumer review services is simple. 0.564
Utilizing internet consumer review services is simple. 0.592
As a consequence, online consumer review systems are quite easy to use.
Reader.
0.396
Utilizing internet consumer review services is simple. 0.451
Client reviews conducted online are straightforward for me to interpret. 0.770
My experience with customer evaluations on the internet has been clear.
Understandable.
0.720
0.779 Control Assumed
When I make purchases online, I feel more in control.
client feedback
0.653
I have a direct impact on customer reviews seen on the internet.
I need help in finding the necessary information.
0.611
I’m able to get pertinent information by reading internet consumer evaluations.
Information.
0.590
Customer feedback collected online enables me to have better control over the service.
Process.
0.616
0.714 Expertise in the Source
Internet reviewers are, for the most part, truthful.
knowledgeable about the subject at hand
0.615
In general, those who write online reviews are great at evaluating things.
the thing being assessed 0.788
0.718 Source Reliability
Individuals that write online reviews are often trustworthy. 0.711
The majority of people who submit online reviews are trustworthy. 0.790
I believe that customer reviews seen online are accurate. 0.698
0.743 Presence Social
There is a sense of personal involvement in internet customer reviews. 0.437
There is a sense of personalization in internet customer reviews. 0.459
Customer reviews left online have a social element to them. 0.312
There is a sense of human warmth in online customer feedback 0.757
There is an element of human sympathy in internet customer reviews. 0.640
0.845 Sensitization to Belonging
When I read online customer evaluations, I have a sense of belonging. 0.716
I like being a part of the online community. 0.748
I have complete trust in others in the virtual community of online reviewers. 0.811
As a virtual community, I am dedicated to the online review community. 0.846
In general, the virtual community of online reviewers has a high level of confidence.
Morale.
0.799
0.655 Pleasure Perceived
For me, reading online consumer reviews is a pleasurable experience.
Pleasant.
0.642
For me, reading online consumer reviews is a pleasurable experience.
On the internet, customer reviews are humorous. 0.700
Online customer reviews are intriguing. 0.689
0.764 Sustaining Emotional Well-Being
Customer reviews seen online are often helpful and encouraging to me.
Generally, I feel that online customer evaluations are slanted in the company’s favour.
Customer.
0.705
Customer reviews on the internet demonstrate a genuine interest in and concern for my well-being.
0.699
Online customer reviews provide a feeling of human thoughts. 0.504
0.788 Assist with Information
When it comes to making a purchase choice, internet customer evaluations may be beneficial. 0.706
Customer evaluations on the internet may assist you in resolving issues. 0.801
Customer reviews found online aid me in finding the cause of problems.
And offer me suggestions.
0.697
0.752 Norms Subjective
Individuals who matter to me feel that I should make purchases from online retailers that provide user feedback.
0.605
People who have influence over my purchasing choices feel I should shop at shops with online customer reviews. 0.605
Attitude 0.862
I enjoy the concept of purchasing online from e-vendors.
provide online customer feedback 0.706
I feel that shopping from e-vendors online is a wise decision.
provide online customer feedback 0.698
The notion of shopping online from e-vendors that sell a range of things
It’s alluring to peruse online customer reviews. 0.563
I like to make purchases online from e-merchants that provide online customer care.
Reviews 0.806
I like to make purchases online from e-merchants that provide online customer care.
Reviews 0.676
Intention to Purchase
Others should make purchases from the e-vendors I strongly recommend.
provide online customer feedback 0.488
I’d gladly provide you with my credit card information if you need it.
Purchasing from an internet merchant who provides online customer care
Reviews 0.363
In the future, I will make frequent purchases from e-vendors that provide.
Online customer feedback is provided at 0.617
I’d be willing to disclose information with an online retailer that requests it.
provides online customer feedback 0.600
0.852 is a reasonable value.
Shopping from e-merchants that provide online customer reviews is an excellent method to save money.
Unreliable 0.769
Purchasing from internet retailers that give user reviews
There are just too many unknowns to rely on 0.711
By and large, I am distrustful of internet service providers.
customer feedback to guarantee they keep their commitments 0.649
Perception of Risk
0.821 Social Danger
Purchasing products/services from e-vendors is a possibility.
I’m hesitant to provide online customer reviews due to the fact that some folks are untrustworthy.
Friends would assume I was arrogant 0.722
Some of the folks whose ideas I admire have convinced me of this.
It’s a good idea to purchase from e-retailers that allow for online customer evaluations.
Foolish.
0.473
Purchasing products and services online from e-vendors
Customer assessments have a detrimental effect on how other people see me.
0.413
Time Risk 0.848
Purchasing from internet retailers that give user reviews
Possibly place me under more time limitations that I do not need.
0.724
Purchasing from internet retailers that give user reviews
may result in poor time management.
0.780
It takes time to shop from e-retailers that provide online consumer feedback.
Time has gone much too quickly.
0.652
Financial Risk: 0.874
Purchasing from internet sellers that provide customer reviews is a wonderful idea.
I’m sorry, but it is not an appropriate use of my money.
0.711
I’d shop at e-retailers that allow for online user reviews.
I’m concerned that the financial investment I make may fail to pay off.
Make no effort at intelligence.
0.791
Purchasing from e-merchants that provide online customer reviews is a smart move.
not give me a satisfactory rate of return on my investment
0.745
I’d shop at e-retailers that allow for online user reviews.
I’d be concerned that I wouldn’t get a reasonable return on my investment.
0.622
0.613 Risk of Performance
When I consider acquiring things or services from e-vendors, I consider the following:
I’m worried about their willingness to provide online customer reviews.
They do what they are intended to accomplish.
0.384
If I were to make a purchase of products or services from an e-vendor that offers
I’m concerned they would ignore customer input received over the internet.
provide the level of benefits that I would expect
0.165
I have reservations about the products/services I’m contemplating.
would make purchases from internet retailers that provide user reviews
execute precisely as planned
0.268
0.82 Physical Danger
One concern I have about shopping from online merchants who promise free delivery is that.
Online user reviews indicate that staring at a computer screen may induce eyestrain.
in the vicinity of the computer
0.638
I’m wary about purchasing online from e-vendors.
Providing online consumer feedback might create an awkward scenario.
Backache and poor sleep quality are two physical adverse effects.
0.663
I’m concerned about the potential health risks associated with this.
Use the assistance of internet customer reviews while making purchases from e-vendors.
0.755
Psychological Risk: 0.815
Purchasing from internet merchants that provide online customer support is enticing.
Reviews cause me emotional distress.
0.660
Purchasing from internet merchants that provide online customer support is enticing.
When I read reviews, I’m overcome with an uncomfortable sense of anxiety.
0.632
Purchasing from internet merchants that provide online customer support is enticing.
Reviews upset me because they make me feel uneasy.
0.719
0.709 Threat to Security
Shopping from online retailers that provide customer reviews is an excellent method to save money.
Sensitive data should not be sent in this way.
0.482
You’ll receive a better price if you purchase at e-retailers that include online customer reviews.
Your credit card information is quite likely to be stolen.
0.555
Purchasing from e-vendors that provide online customer support is a smart idea in general.
Reviewing is an insecure method of transmitting sensitive information.
0.547
Discussion and Conclusion
This research has an impact on both the theory and the way individuals conduct themselves. For starters, the empirical findings of the research indicate that the social psychology literature on the negative bias may be difficult to apply to customer-generated product evaluations, according to the findings. The study contributes to the theory of information systems by presenting social psychology concepts that may be used to enhance the quality of an evaluation process. Furthermore, it contributes to the notion of word-of-mouth marketing by concentrating on both the quality and the worth of consumer-generated evaluations.
People who run a business can also use this study. As part of their marketing strategy, e-commerce businesses may try to get good reviews from customers who already buy from them. Online businesses should look for ways to get more than just positive reviews from customers. They should also look for ways to get more detailed reviews that help future customers. As an example, some websites like Amazon might add a tool that shows how easy it is to read in real-time. For example, when someone writes a review, the tool shows how easy it is to read. Also, the information quality criteria could be used to group customer reviews on a product’s website, making it easier for people who want to buy it to quickly find more useful information.
Furthermore, it contributes to the literature by stating that when modelling the relationships between OCRs and marketing success indicators, more factors should be taken into consideration than they already are. The ability to make a more rational and logical judgment of a bigger number of important factors is enabled by this. It is anticipated that the outcomes of this research will be useful to those in both academics and business. Such involvement in business communities will benefit from this research because it will enable them to better understand how the reputation of online companies in the United Kingdom influences the likelihood that consumers will conduct business with those organizations. It will also assist companies in obtaining relevant information and feedback, which may result in increased client confidence in the company. It will also assist firms in keeping an eye on their customers’ risk perceptions and attitudes about their goods, which will assist them in developing the most effective marketing campaigns.
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Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
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