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.

Citation

Xu, B., Lin, Z. and Shao, B. (2010), "Factors affecting consumer behaviors in online buy‐it‐now auctions", Internet Research, Vol. 20 No. 5, pp. 509-526. https://doi.org/10.1108/10662241011084086