Factors affecting consumer behaviors in online buy‐it‐now auctions

Abstract

Purpose -As a type of electronic commerce, online C2C markets have experienced a rapid growth in both sales volume and user numbers. Buy-it-now (BIN) auction is a mechanism to facilitate online auctions, and is adopted by the major online C2C marketplaces. This study aims to investigate consumers' purchase and adoption of risk relief service in BIN auctions in the online C2C market from the perspective of perceived risk. Design/methodology/approach -A research model is developed based on relevant theory. Data are collected from American and Chinese consumers through a web-based experiment system that simulates the transaction process on online C2C markets. The proposed hypotheses are tested with logistic and multiple linear regressions. Findings -The results show that buyer's purchase behavior and usage of risk relief service for a transaction in BIN auctions are determined by the perceived risk, which is influenced by the buyer's risk attitude, seller online reputation, and the product price and type. Practical implications -This study provides an in-depth understanding of consumers' behaviors on online C2C markets at transaction level, and makes implications for online marketplace operation and business strategy making. Originality/value -The primary value of this paper lies in providing a better understanding of consumers' behaviors on online C2C market, and investigating the factors that influence the consumers' purchase and adoption of risk relief service in online BIN auctions from the perceived risk perspective.

Consumer to Consumer (C2C) Online Auction Transaction Intentions: an Application of the Theory of Planned Behaviour

“…Online auction services, such as eBay, need to continue to communicate messages to enhance consumer confidence, building trust, to enhance consumer's belief in the service provider, and therefore reduce perceived risks (Xu, Lin and Shao, 2010). The attitude and satisfaction related variables, like trust, identified in the current research are therefore invaluable in terms of persuading potential consumers to use the service, and maintaining the existing consumer base in the early stages of buying behaviour.…”

“…That is, the regions selected for the current study may have shared certain cultural attitudes and perceptions making the sample more homogeneous in nature due to geographical proximity. Thus, a third region could have been employed to explore possible variations and address any cultural variations as suggested by Xu, Lin and Shao (2010). Another sampling related limitation was that individuals attending business events were targeted so the sample itself may not be reflective of those from non-business oriented backgrounds or professions.…”

“…The medium of e-commerce is becoming more important with the numbers of online buyers and sellers increasing over the past number of years (Rauniar et al, 2009;Xu, Lin and Shao, 2010;Leonard, 2012). Furthermore, the success of customer-to-customer (C2C) transactions has grown over the past number of years and particularly in the area of online auctions (Chu and Liao, 2007).…”

The Moderating Effect of Subjective Norm on Cloud Computing Users’ Perceived Risk and Usage Intention

“…On the research of e-commerce and internet virtual trading, Liebermann and Stashevsky's (2002) and Lu, Hsu and Hsu (2005) found that better personal information security will result in the increase in perceived risk and the decrease in usage intention. Wang (2009) asserted that perceived risk significantly affects to usage intention of smart phone online services and is a determinant whether users will adopt online buy-it-now auction on the C2C Market or not (Xu, Lin, & Shao, 2010). Chi, Yeh, and Yang (2009) found that perceived risk will further influence users' usage intention in smart phone because they worry about practical function, service quality, and technical operation of a new technology.…”

How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market

“…Verhagen, et al (2006) suggest that in C2C purchase, buyers need to face the risks that come from both intermediary and seller. Xu, et al (2010) also argue that C2C buyers face higher risk due to the physical separation and an uncertainty about sellers' profiles. Chung (2013) points out that perceived risk is likely to mediate the effect of price dispersion on attitude when buyers are concerned about the causes of different prices quotes for a product.…”