Trust, risk and transaction intention in consumer-to-consumer e-marketplaces

Abstract

Purpose The purpose of this paper is to compare the relative impacts of trust and risk on individual’s transaction intention in consumer-to-consumer (C2C) e-marketplaces from both the buyers’ and the sellers’ perspectives. Design/methodology/approach Two surveys were used to collect data regarding buyers’ and sellers’ perceptions and transaction intentions at a typical C2C e-marketplace. Partial least squares was used to analyze the data. A complementary qualitative study was conducted to triangulate the results from the quantitative study. Findings Institution-based trust (IBT) exerts a stronger influence on transaction intentions for buyers than for sellers. Sellers perceive a stronger impact of trust in intermediary (TII) than buyers on transaction intentions. The impacts of perceived risk in transactions are not different between buyers and sellers. Furthermore, IBT mediates the impacts of TII and perceived risk on transaction intentions for buyers. Research limitations/implications The results indicate that the impacts of trust and risk on transaction intention in e-marketplaces do differ between buyers and sellers. This suggests a need to further investigate the buyer–seller difference in online transactions. Practical implications Intermediaries need to focus on different types of trust-building mechanisms when attracting buyers and sellers to make transactions in the e-marketplace. Originality/value C2C e-marketplaces cannot survive without participation from both buyers and sellers. Most prior research is conducted from the buyers’ perspective. This research sets a starting point for future research to further explore the differences between buyers’ and sellers’ behavior in C2C e-commerce environments.

Antecedents of trust in the sharing economy: A systematic review

“…Perceived website quality was found to have a positive influence on institution‐based trust by three studies (Ha & Liu, ; Jones & Leonard, ; Yoon & Occeña, ), although Yoon and Occeña only found this effect for people in their twenties. Finally, one study found that trust in the platform has a positive effect on trust in the Internet (Wei et al, ).…”

“…Nine studies found that trust in the platform also influences trust in the seller (Chen, Huang, et al, ; Chen, Lai, et al, ; Chen, Huang, et al, ; Lee & Lee, ; Möhlmann, ; Thierer et al, ; Verhagen et al, ; Wei et al, ; Zhang et al, ). A platform, for example, can use guarantees and assurances to establish trust.…”

“…twenties. Finally, one study found that trust in the platform has a positive effect on trust in the Internet (Wei et al, 2014).…”

Assessing the Buyer Trust and Satisfaction Factors in the E-Marketplace

“…Buyer's trust in one component of the e-marketplace merchant may not only affect their trust in the other, however, also influence the way buyers make online purchases [24]. Based on these facts, assessing the perceived risk in e-marketplace is prerequisite measures to minimize the possibility loss between sellers and buyers in e-marketplaces [57]. Buyers concerned about a loss of privacy, misuses of personal information, and quality of product [9].…”

Membangun Kepercayaan Konsumen untuk Meningkatkan Intensi Pembelian

“…Karena disaat bertransaksi di marketplace, konsumen dan penjual tidak bertemu langsung. Oleh karena itu penting dalam membangun kepercayaan terhadap toko karena didalam marketplace masih ditemui berbagai aksi curang penjual yang menjadi alasan konsumen berhati hati dalam memilih toko dalam marketplace (Wei et al, 2019). Dalam membangun kepercayaan dengan konsumen didalam marketplace, ada beberapa faktor yang perlu dibangun dalam menjalankan bisnis secara online.…”