Antecedents of trust in online auctions

Customer loyalty or repeat purchasing is critical to the online auction sellers’ survival and success. Previous research has established that online repeat purchase intentions are the product of buyer assessments of trust in the online seller. Previous research has also affirmed the importance of justice perceptions in engendering trust. These perspectives, however, have been examined independently by IS and management researchers. By integrating these two perspectives, a richer understanding of buyers’ underlying beliefs and subsequent repeat purchase intentions can be gained. In the research model, bidding justice is proposed as a formative second-order construct driven by distributive justice, procedural justice, interpersonal justice, and informational justice. Bidding justice is hypothesized to positively affect trust in the community of sellers, which in turn is hypothesized to positively affect repeat purchase intentions. Data collected from 412 buyers in Yahoo-Kimo’s online auction marketplace provide support for the proposed model. The study shows that trust is a significant positive predictor of buyers’ intentions to repeat purchase. The study also shows that the four dimensions of justice are important components of bidding justice, which in turn has a strong positive effect on trust in the community of sellers. Implications for theory and practice and suggestions for future research are discussed.     

Institutional dependencies in dynamic buyout price models for online auctions

There is disagreement in the auction literature on the question of whether dynamic Buy-It-Now (BIN) prices can increase the efficiency of online auctions, compared to static BIN price auctions. In a previous paper (Vragov et al. 2010), we reported experimental evidence that suggested, contrary to the current theoretical auction literature, that dynamic BIN pricing is indeed economically more efficient. The current paper presents a replication study of this research that interestingly fails to reproduce the earlier findings. It is based on the same general experimental design, but modifying the implementation of the specific trading institution by using a linearly declining BIN price (Online Linear Dutch Auction—OLDA) rather than the discrete one-time price change (Online One-time BIN-price Change Auction—OOBCA) that was used in the previous study. OLDA is more dynamic in nature than OOBCA, yet OOBCA outperforms a generalized static online auction design in the laboratory while the OLDA does not. We explain these different results, and thus resolve the ostensible contradiction between the two sets of experiments, by concluding that the specific implementation of the trading institution (i.e., the dynamic BIN pricing mechanism) has a significant effect on the overall market efficiency. In other words, our research finds that the efficiency of dynamic buyout price auctions is institution-dependent. This has important theoretical implications as most formal auction models assume that the auction outcome is institution-free. We also discuss some practical implications of our findings.     

The causal relationship between risk and trust in the online marketplace: A bidirectional perspective

Trust and perceived risk have been identified as the two primary factors affecting engagement in online transactions. However, earlier studies have conceptualized the directionality of the causal link between these two factors differently. Some researchers have conceptualized trust as an antecedent to risk, while others see it as a consequence. To resolve this issue, we develop a bidirectional model in which trust and perceived risk mutually influence each other. We then test the ability of the bidirectional model to provide a more realistic explanation of buyers' decision-making than previously offered unidirectional models. In a sample of 747 experienced buyers in the online marketplace, we find a reciprocal and nearly equal effect of trust and perceived risk. The results of the study reveal that the direct effect of trust on transaction intention is highly significant, whereas that of perceived risk is insignificant. Based on these empirical findings, we discuss the implications of our research, including the appropriateness of our research question and several paradoxes identified in prior studies.     

Empathy and online interpersonal trust: A fragile relationship

The rapid growth of personal email communication, instant messaging and online communities has brought attention to the important role of interpersonal trust in online communication. An empirical study was conducted focusing on the effect of empathy on online interpersonal trust in textual IM. To be more specific, the relationship between empathic accuracy, response type and online interpersonal trust was investigated. The result suggests both empathic accuracy and response type have significant influence on online interpersonal trust. The interaction between empathic accuracy and response type also significantly influences online trust. Interestingly, the results imply a relationship between daily trust attitude and online interpersonal trust. People who are more trusting in their daily life may experience more difficulty in developing trust online. There is also some evidence to suggest that different communication scenarios may have an influence on online trust.     

Building presence in an online shopping website: the role of website quality

This study explores how sellers’ website quality influences buyers’ perceived presence, which in turn affects website identification and purchase intention. The results of a conceptual model, with data collected from TaoBao, demonstrate that information and service quality are positively related to social presence, and system and service quality are positively related to telepresence. Furthermore, information and service quality increase website identification, but system quality does not. Finally, social presence positively affects website identification and purchase intention, while telepresence only positively affects website identification. These results bridge the research gap about the formation of presence in an online shopping context.     

Connection between customer emotions and relationship quality in online music services

Previous research focuses primarily on studying the influence of emotions on satisfaction in online music services, whereas few studies analyse their effects on trust and commitment. This study specifically examines the interaction role of emotions in relationship quality (i.e. a higher-order construct composed of commitment, satisfaction and trust). We hypothesise that emotions will exert a direct effect on relationship quality, but will also moderate the relationship between its components. An empirical survey is used to test the hypotheses. Data are collected from a total of 408 users of online music services from the UK, Germany and Denmark. The results provide strong support for the proposals that, on the one hand, satisfaction and trust lead customers towards developing high commitment to online music services; and, on the other hand, emotions are important quasi-moderators to engage in online service relationships. The results of this study could help online music service providers (a) to create a successful business model; and (b) to determine the main drivers of online loyalty.     

Reference price effect and its implications for decision making in online auctions: An empirical study

Simultaneous supplies of an item by multiple online auction vendors greatly reduce the burden of arduous search that a consumer has to conduct in a brick-and-mortar market. The enriched information set endows all auction participants with added decision flexibility and complexity. One of such flexibilities or complications is the potential of information cross-referencing. In this study, we empirically tested if and how bidders interacted with each other through cross-referencing. Our results strongly supported the existence of cross-referencing. We also identified new strategies and tactical moves as best responses for sellers and bidders under the online simultaneous condition. This research provided another support for the path-dependent nature of online auctions as bidders were found to actively adjust their behavior in avoidance of winner's curse.     

供应商关系管理关系质量信任模型研究

针对目前供应商关系管理中的关系质量研究缺乏实时决策支持,根据关系质量定义维度特点,结合已有的信任研究成果,构建了关系质量维度中的动态的信任模型。模型的特点是：根据满意和信任的关系,以满意度代替直接评分或者成功交易的概率,并充分考虑交易的重要性,提高了信任度量的精度,实现了信任模型度量得动态性。同时,设置适当的触发策略提高了模型的抗欺诈程度。仿真实验证明了该模型良好的可行性,为供应商关系管理中关系质量实时度量提供了依据。     

Incentive mechanisms,fairness and participation in online group-buying auctions

The main idea of an online group-buying auction is to recruit enough people to generate a sufficient volume of orders to create the basis for a lower transaction price. Typically, the larger the number of orders, the more consumers will wish to participate. This is because the final auction price is likely to be lower than it would be otherwise. This positive feedback is a demand externalities phenomenon. Nevertheless, there also is a phenomenon of inertia that often occurs at the beginning of online group-buying auctions. Due to the small number of orders that occur in the beginning of an online group-buying auction, many potential participants are inclined to wait until the auction price for the sale item falls to an acceptable level. This only comes through the participation of more people in the auction. As a result, consumers will tend to wait for one another to join the auction. Thus, the startup inertia must be overcome before the number of orders will increase. We explore three incentive mechanisms to address this problem: sequence-based, time-based and quantity-based incentives. We conducted a series of experiments using an online group-buying auction experimental test bed deployed on the Internet to develop deeper insights into how these incentives work in the context of bakery cookie sales. Using theory to represent a variety of decision-making perspectives that can be applied in the online group-buying auction context, we explore whether the different incentive mechanisms cause consumers to perceive a lack of price fairness and procedural fairness in an auction’s operations. Our results suggest that consumers view participation discounts as creating the basis for perceptions of greater price fairness in online group-buying auctions. Compared with other incentive mechanisms, a sequence-based incentive mechanism gives consumers a sense of less procedural fairness. Finally, perceptions of fairness tend to have a positive association with price satisfaction and purchase intention.     

The role played by perceived usability,satisfaction and consumer trust on website loyalty

We performed a study to determine the influence that perceived usability has on the user's loyalty to websites that they visit. The results of the empirical analysis confirmed that the trust of the user increases when the user perceived that the system was usable and that there was a consequent increase in the degree of website loyalty. In the same way, greater usability was found to have a positive influence on user satisfaction, and this also generated greater website loyalty. Finally, it was found that user trust was partially dependent on the degree of consumer website satisfaction.     

Intuition,risk, and the formation of online trust

Understanding how consumers evaluate website trustworthiness is a critical factor for online vendors. The dominant view espouses a deliberative trust formation process whereby shoppers evaluate security certificates, return policies, user feedback and the like, implying a highly rational underlying trust calculus. In this paper we use a laboratory experiment to explore an alternative perspective, based on the non-rational associative reasoning approach. Our findings show that when faced with a no-risk hypothetical decision about whether or not they would purchase a book from an online bookseller, subjects’ decision-making processes were indeed consistent with the dominant deliberative view. However, when confronted with a decision entailing risk (i.e., sharing sensitive personal information with an unknown website), subjects became reliant on their non-rational, gut-level intuition. We adopt a dual-process reasoning theory to make sense of these findings, and recommend that vendors take into account associative reasoning factors when designing online interfaces. Future research directions are provided.     

Government website service quality: a study of the Irish revenue online service

Online taxation systems have been among the most successful of e-government applications both in terms of citizen take-up and savings to the taxpayer. Understanding the factors that lead to high take-up is of potential interest to other public sector online service providers. This paper examines the quality of the online service provided by the Irish Revenue Commissioners’ tax filing and collection system, Revenue Online Service (ROS). A modified version of the recently operationalized E-S-QUAL instrument is used to examine online service quality from the point of view of the citizens and tax practitioners who use this eGovernment system. The findings show that efficiency and ease of completion are the dimensions of website service quality that most influence ROS users’ perceptions of value and convenience as well as their intentions to use and recommend the website to their peers. The practical implications of these findings include the fact that providers of public sector e-services should concentrate on communicating the functionality of their e-services. In addition, they should focus on reducing citizen concerns regarding misuse or mismanagement of personal data.     

Reserve price efficiency and competitive pressure in auctions

This paper analyzes reserve price efficiency in auctions, which is defined as the relative value of the expected revenue increase induced by the optimal reserve price. We give a formal definition of competition (competitive pressure) in auctions and prove that reserve price efficiency is a decreasing function of competition level. And finally, some examples of auction properties affecting monotonically competition level are provided.     

Knowledge sharing behavior in virtual communities: The relationship between trust,self-efficacy,and outcome expectations

There has been a growing interest in examining the factors that support or hinder one's knowledge sharing behavior in the virtual communities. However, still very few studies examined them from both personal and environmental perspectives. In order to explore the knowledge sharing behaviors within the virtual communities of professional societies, this study proposed a social cognitive theory (SCT)-based model that includes knowledge sharing self-efficacy and outcome expectations for personal influences, and multi-dimensional trusts for environmental influences. The proposed research model was then evaluated with structural equation modeling, and confirmatory factor analysis was also applied to test if the empirical data conform to the proposed model.     

Interplay between trust,information privacy concerns and behavioural intention of users on online social networks

Trust and privacy features of websites have evolved as an important concern for any businesses or interactions, particularly in online networks. The study investigates the relationship between trust, privacy concerns and behavioural intention of users on the social network. The behavioural intention of users on the online social network (OSN) is captured by intention to disclose information and intention to interact with others in OSN. The study was conducted on a sample of 457 active users from one of the major social networking website, Facebook. Partial least squares based structural equation modelling was used for analysing the results. The findings of the study reveal that intention to disclose information mediates the relationship between trust in the website and the intention to interact with others. Another important finding of the study indicates that prior positive experience with the website significantly impacts the trust in website, and the trust in website also plays a crucial role while determining the information privacy concerns in the OSN.     

Consumer trust and distrust: An issue of website design

Researchers have long speculated about the distinction between trust and distrust, yet the majority of studies on trust have treated them as essentially the same construct on opposite ends of a continuum. In order to resolve this ambiguity, we propose a theoretical framework to investigate the antecedents and influences of trust and distrust in the online shopping context, relying on the literature of website design and consumer trust, ambivalence theories, as well as emerging studies on distrust in the work place. Our findings indicate that trust and distrust are two separate concepts by reason of their distinct cognitions, different antecedents and different influences on consequent outcomes. In particular, the results show that specific website design attributes have distinct effects on shaping consumers’ trust and distrust. These findings suggest new ways in which website attributes can be fine-tuned by website designers and managers.     

基于信任-权限关系的角色派生策略研究

在网格环境下,信任关系是实现网格资源高度共享的基础。该文通过将信誉度模型与访问网格资源的权限相联系,建立了角色派生的流程,提出了一个具有动态生成角色的策略模型。     

An overview of online trust: Concepts,elements, and implications

Lack of trust has been repeatedly identified as one of the most formidable barriers to people for engaging in e-commerce, involving transactions in which financial and personal information is submitted to merchants via the Internet. The future of e-commerce is tenuous without a general climate of online trust. Building consumer trust on the Internet presents a challenge for online merchants and is a research topic of increasing interest and importance. This paper provides an overview of the nature and concepts of trust from multi-disciplinary perspectives, and it reviews relevant studies that investigate the elements of online trust. Also, a framework of trust-inducing interface design features articulated from the existing literature is presented. The design features were classified into four dimensions, namely (1) graphic design, (2) structure design, (3) content design, and (4) social-cue design. By applying the design features identified within this framework to e-commerce web site interfaces, online merchants might then anticipate fostering optimal levels of trust in their customers.     

Investigating customer satisfaction dimensions with service quality of online auctions: an empirical investigation of e-Bay

Over the recent years, C2C (consumer-to-consumer) electronic market has increased rapidly, and has become the most active segment of e-markets today. Despite the growth and popularity of online auctions and especially of e-Bay, which has been considered to be one of the most profitable e-commerce companies, the online auction environment is risky and transactions are complex due to the fact that buyer and seller do not know each other and they are not familiar. Although many studies have examined the impact of e-service quality on customer satisfaction in B2C (business-to-consumer) or B2B (business-to-business) commerce, the literature is insufficient in the case of C2C commerce. However, a number of authors have conducted research in C2C and particularly in e-Bay but in all of the cases, data source from e-Bay’s feedback system was employed in order to investigate service quality issues. Nevertheless, in this study a field research was conducted in order to collect the necessary data and thus reducing possible bias. The purpose of this paper is to examine some determinants of satisfaction with service quality dimensions in the online auction environment. More specifically, this paper is examining the case of e-Bay, in order to have a better understanding of buyers’ satisfaction in this risky environment. The paper’s aim is accomplished through an empirical investigation of a sample of 2,099 buyers of e-Bay, examining buyers’ expectation and perception levels towards service quality of e-Bay. Gap analysis was first employed in order to identify users’ disconfirmation dimensions in the online auction market place. Some research hypotheses are formulated to find out whether these dimensions have a positive disconfirmation. In most of the cases a positive disconfirmation is tracked down. Secondly, factor analysis was utilized to identify broad determinants of e-Bay service quality. The pool of the initial items deduced to four factors. These factors are, to a degree, differentiated in the Greek environment from factors found in other studies. A second round of research hypotheses are formulated again to find out whether those factors are related to the users’ disconfirmation dimensions. Finally, a new theoretical model is proposed based on the above mentioned hypotheses.     

Interplay between Buy-It-Now price and last minute bidding on online bidding strategies

Sellers and buyers on online auction sites like eBay have the option of setting and executing auction parameters such as auction length, Buy-It-Now price, starting price, reserve price, etc. Understanding why bidders choose to execute the Buy-It-Now price as opposed to submitting a bid at the last minute of an auction helps managers better choose auction parameters and generate more revenue. In this paper, we first study online bidder behavior pertaining to the execution of the Buy-It-Now option as opposed to the last minute bidding strategy on eBay. Consequently, we study the seller’s decision to set a Buy-It-Now option and the amount of it. Our main finding is that a dominant strategy for the seller is to offer a Buy-It-Now option at the beginning of the auction. An early bidder arriving at the auction site is indifferent in choosing threshold Buy-It-Now prices or moving onto the auction and under particular circumstances strategically waiting for the last minutes of the auction to submit a bid. We also provide conditions on the existence of a set of equilibria which predicts the outcome of the game of executing the Buy-It-Now option versus last-minute bidding on eBay.