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The value of guarantee in service e-commerce

Haichao Zheng (School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China)
Jui-Long Hung (Department of Education Technology, Boise State University, Boise, USA)
Zhangxi Lin (Rawls College of Business Administration, Texas Tech University, Lubbock, Texas, USA)
Jing Wu (School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China)

Nankai Business Review International

ISSN: 2040-8749

Article publication date: 2 March 2015

Abstract

Purpose

The purpose of this paper is investigating the value of service guarantee (SG) program in Service e-Commerce (SeC) which is one resolution to promote service transactions. SeC is emerging as a booming form of e-commerce where various services are contracted, managed, sold and even delivered via the Internet. However, the uncertainty of service quality and the heterogeneity of buyer preferences have been major challenges to sustainable development of SeC.

Design/methodology/approach

This study uncovered the value of SG in SeC by empirically analyzing the data collected from zhubajie.com, a well-known service e-marketplace in China, to classify the service providers, to indentify the predictors for SG subscription and to study the effects of SG on service providers’ business performance and service quality.

Findings

The authors found that the distribution of service provisions is diversified in terms of low-success, mid-success and high-success providers, while proactive or high ability-ranking providers consistently tend to subscribe to SG program. The study revealed that SG has diverse effects on business performance for low-success and mid-success providers. For high-success providers, it seems to not be an effective choice for transaction promotion. Finally, the results showed that SG marginally improved service quality.

Practical implications

This research provides some practical implications for SeC markets to improve SG program. In addition, the results also help service providers to understand the value of SG in depth.

Originality/value

This article extended the research of SG from the traditional offline market to the online market, as with SeC, in which transactions are conducted without face to face contact.

Keywords

Acknowledgements

The authors gratefully acknowledge the support of Humanities and Social Sciences Young Scholar Fund by Chinese Ministry of Education (12YJCZH306), the National Natural Science Foundation of China (71302186), China National Social Sciences Fund (11AZD077) and Fundamental Research Funds for the Focal Universities in China (JBK120505).

Citation

Zheng, H., Hung, J.-L., Lin, Z. and Wu, J. (2015), "The value of guarantee in service e-commerce", Nankai Business Review International, Vol. 6 No. 1, pp. 82-102. https://doi.org/10.1108/NBRI-03-2014-0019

Publisher

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Emerald Group Publishing Limited

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