Using data relating to eBay transactions, investigates the economic, demographic, and geographic factors affecting willingness to pay for purchases online.
Carries out regression analysis of 3,386 eBay transactions, over a two‐year period, reported by two American sellers operating on the United States eBay site. In all auctions examined, consumers had the option of making payment online or by various traditional payment methods.
Analysis identifies several variables as reasonable predictors of the chosen payment method, including the value of the transaction, the buyer's gender, rural versus urban residence, and several other characteristics of the community in which the buyer lives.
The general demographic, geographic, and economic variables of consumers can be used by researchers and planners to predict consumers' willingness to make online payments. The effect of income demands further investigation. Factors not identified – such as consumer personality and ethnicity or product category – might also influence this form of online consumer behaviour. The study is restricted to online consumer auction transactions in one country only.
Uses a larger sample than most previous studies of eBay to identify general demographic, geographic, and economic characteristics of an American sample of eBay consumers, which act as predictors of willingness to make online payments for purchases. Can be a departure point for further research in other countries.
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