Beruflich Dokumente
Kultur Dokumente
Institute of International Management, National Cheng Kung University, 1 University Road, 701 Tainan, Taiwan
School of Economics and Business, 226 Netzer Administration Bldg., SUNY College at Oneonta, Oneonta, NY 13820, USA
c
Top Union Electronics Corp., No. 480 Nioupu E. Rd., Hsinchu, Taiwan
d
Virata School of Business, University of The Philippines, Diliman, 1101 Quezon City, Philippines
b
a r t i c l e i n f o
a b s t r a c t
Article history:
Received 22 January 2015
Received in revised form
8 July 2015
Accepted 23 July 2015
Available online 24 August 2015
This research explores some factors affecting purchase and repurchase intentions towards online auctions. An experiment, in the context of PChome & eBay and Yahoo Auction online auctions websites, was
conducted to simulate an environment manipulating branding, seller evaluation, volume of information,
and price ranges to inuence purchase intentions, reecting some aspects of utilitarian and hedonic
approaches towards purchase and repurchase intentions. Furthermore, mediation strategies, trust, and
media richness were also introduced in the study to examine their inuence on repurchase intentions.
120 participants validated the experimental design, where all variables inuencing purchase intentions
were found to be signicant in varying degrees, and where mediator strategies and trust were found to
signicantly inuence repurchase intentions. These results reinforce notions that online auctions are
complex processes, especially to induce purchase and repurchase intentions, and that both buyers and
sellers have complex utilitarian and hedonic approaches to develop purchase and repurchase intentions.
Further theoretical and managerial implications are detailed in this research.
2015 Elsevier Ltd. All rights reserved.
Keywords:
Online auctions
Purchase intentions
Repurchase intentions
Mediation strategy
Trust
Media richness
Information exchange
Price setting
1. Introduction
E-commerce and Internet shopping is continuously enjoying
high and rapid growth and development (Chen, 2012; Shiau & Luo,
2012; Zhou, 2012). The continuous growth of online shopping, the
recent developments in B2C and C2C platforms, and the improved
interactions between different online entities all contribute to the
continuous growth of online auction markets (Dimoka, Hong, &
Pavlou, 2012; Muthitacharoen, Claycomb, & Pelkowski, 2011;
Shiau & Luo, 2012; Xu, Lin, & Shao, 2010). These ongoing development, coupled with the rapid competition from other e-commerce platforms (Hsu, Chang, Chu, & Lee, 2014; Shiau & Luo, 2012),
encourages constant reexamination and revisiting of online auction
design and its effect on consumer behavior. Online auction websites
provide a fast and efcient trading platform for different people to
* Corresponding author.
E-mail addresses: victor@mail.ncku.edu.tw (J.V. Chen), David.Yen@oneonta.edu
(D.C. Yen), bronte_kuo@topunion.com.tw (W.-R. Kuo), RA8997054@mail.ncku.edu.
tw, escapistrano@up.edu.ph (E.P.S. Capistrano).
http://dx.doi.org/10.1016/j.chb.2015.07.048
0747-5632/ 2015 Elsevier Ltd. All rights reserved.
187
188
189
Online auctions such as eBay have developed an online mediation mechanism and a reputation tracking system to enhance trust
and cooperation between sellers and buyers. After concluding a
deal, both parties can evaluate each other, providing a reference
value that others can use for future evaluations (Ba & Pavlou, 2002).
Other functions of mediation systems include diagnostics to provide additional product information, analytics to determine root
causes of problems, and suggestion functions to provide additional
ideas (Yen & Lu, 2008). Overall, since there are costs involved
during the purchase and repurchase process (Wu et al., 2014), being
190
H9c. Higher trust between the online auction seller and customer
exert more signicant inuence on online auction customers' level
of compromise.
A mediator is an individual or a group of people who communicate with the different parties in an online auction that will not
cause any negative effects or violations of their free. This type of
mediation is also a part of the service being provided, and providing
service is a component inuencing repurchase intentions (Chiu
et al., 2013; Kim et al., 2012). Given the wide array of price and
product related issues, online mediation can help consumers make
more efcient purchases (Chiu et al., 2012) and enjoy a smoother
auction process (Yen & Lu, 2008). Online transaction mechanisms
with good online mediations can improve consumers' perceived
usefulness and reduce consumers' perceived risk.
H10. More favorable online mediation strategies exert more inuence on online auction customers' repurchase intention.
2.7. The purchase and repurchase intentions of online auction
consumers
Willingness to buy, and henceforth purchase intentions, is the
probability of a consumer making a product purchase (Dodds et al.,
1991; Grewal et al., 1998; Zeithaml, 1988). What sellers want to
know most is how consumers form their purchase decisions, and
how to use a variety of marketing and operational tools at their
disposal to effectively inuence consumers' purchasing decisions
(Gregg & Walzack, 2008), both from the utilitarian and hedonic
perspectives.
As far as utilitarian approaches are concerned, recent researches
have pointed to the aspects of website and seller attributes (Chiu
et al., 2014), the degree of efciency and effectiveness of
acquiring the item to be purchased (Chiu et al., 2013), and the costs
associated with making the purchase (Wu et al., 2014). And as far as
the hedonic approaches are concerned, this primarily pertains to
the quality of their experiences during the online shopping process
(Chiu et al., 2014), including how the sellers' efforts mitigate risk
perceptions and enhance their service quality by building good
relationships (Zhang et al., 2011).
And the same is true for repurchase intentions. In fact, there has
been a signicant shift of the focus from examining how consumers
form purchase decisions to inducing how can they be motivated to
make repeat purchases (Chiu et al., 2012; Hsu et al., 2014), which is
very critical component for sustainable online success, especially
since it has been more and more difcult to encourage customer
loyalty due to the reduction of how sellers can differentiate
themselves from one another (Kim et al., 2012; Shin et al., 2013).
Furthermore, it has also been proven that repeat customers are
more protable, since over time more experienced customers can
spend less time and effort to make more accurate evaluations (Chiu
et al., 2014), making the seller spend less time and effort on them
on providing product and price information compared to new
customers, with whom they must provide an enormous amount of
reference information (Zhou, 2012).
Purchase intention means the possibility that consumers are
willing to purchase the product (Dodds et al., 1991). A critical
component of the entire purchase process is the satisfaction that
consumers experience when making the purchase, which is based
on their conrmation or disconrmation of their expectations
while making the purchase (Chen, 2012; Chiu et al., 2013; Hsu et al.,
2014). The idea is to judge the product or service satisfaction by
comparing the expected and perceived performance and the level
of satisfaction (Oliver, 1981) as a reference point for a repurchase
intention. Therefore, satisfaction with the purchase process can
191
Table 1
Four factor experiment design e Yahoo Auction/Pchome & eBay.
2
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
192
Table 2
Three factor experiment design.
Trust
Distrust
Trust
Distrust
Coordination strategy
Pressing strategy
1
3
5
7
2
4
6
8
Table 3
Four groups of experiment websites.
Group 1 (A)
Group 2 (B)
Group 3 (C)
Group 4 (D)
High evaluation, high volume of information, high price range, fake cell phones
Low evaluation, high volume of information, high price range, fake cell phones
High evaluation, low volume of information, high price range, fake cell phones
Low evaluation, low volume of information, high price range, fake cell phones
High evaluation, high volume of information, low price range, fake cell phones
Low evaluation, high volume of information, low price range, fake cell phones
High evaluation, low volume of information, low price range, fake cell phones
Low evaluation, low volume of information, low price range, fake cell phones
High evaluation, high volume of information, high price range, branded cell phones
Low evaluation, high volume of information, high price range, branded cell phones
High evaluation, low volume of information, high price range, branded cell phones
Low evaluation, low volume of information, high price range, branded cell phones
High evaluation, high volume of information, low price range, branded cell phones
Low evaluation, high volume of information, low price range, branded cell phones
High evaluation, low volume of information, low price range, branded cell phones
Low evaluation, low volume of information, low price range, branded cell phones
Table 6
Participants' online purchasing characteristics.
Table 5
Participants' demographic prole.
Sample characteristics
Items
Times
Percentage (%)
Gender
Male
Female
15e18 years old
19e23 years old
24e28 years old
29e35 years old
Over 35 years old
Undergraduate
Graduate
Less than an year
1e1.5 years
1.5e2 years
2e2.5 years
More than 2 years
Less than 0.5 h
0.5e1 h
1e1.5 h
1.5e2 h
More than 2 h
2500e3500
3600e6500
12,000e20,000
21,000e23,000
APPLE
LG
Vietnam
China
Others
Taiwan Mobile
Fareastone
Chunghwa Telecom
Others
51
69
5
88
24
2
1
95
25
20
17
17
18
48
42
44
13
10
11
16
52
45
15
119
1
1
118
1
11
3
103
3
42.5%
57.5%
4.2%
73.3%
20.0%
1.7%
0.8%
79.2%
20.8%
16.7%
14.2%
14.2%
15.0%
40.0%
35.0%
36.7%
10.8%
8.3%
9.2%
13.3%
36.4%
37.3%
12.4%
99.2%
0.8%
0.8%
98.3%
0.8%
9.2%
2.5%
85.8%
2.5%
Age
Education
Number of years participating
in online auctions
Provider
193
Sample characteristics
Items
Yahoo!
PChome & eBay auction
Others
Total browsing time spent
Less than 0.5 year
0.5e1 year
1 to 2 years
2e3 years
More than 3 years
Roles in online auction sites
Almost are buyers
Most of them are buyers
Both buyer and seller
Most of them are sellers
Almost are buyers
Trading goods bought and sold Almost are second
hand products
Most are second
hand products
Both second and new
products
Most are new products
Almost are new products
Amount of the transaction
Under 500
(Volume)
500e1000
1000e3000
3000e5000
Over 5000
Auction times
0e1 times
2e3 times
7e10 times
More than 10 times
Satisfaction on handling of
A little dissatised
disputes
Dissatised
General
Satised
Very satised
Never encounter
Auction features importance
Transaction Price
Response speed of the
complaint issue,
multi-channel
communication
Browse menu design
and operation method
Purchase price (NT$)
Under 4000
4000e8000
8000e12,000
Over 12,000
How many cell phones
0
purchased?
1
2
Brands of the cell phones
APPLE
NOKIA
MOTOROLA
Samsung
LG
SONY Ericsson
HTC
Others
Times Percentage
(%)
93
25
2
9
16
24
37
34
73
18
23
4
2
6
77.5%
20.8%
1.7%
7.5%
13.3%
20.0%
30.8%
28.3%
60.8%
15.0%
19.2%
3.3%
1.7%
5.0%
13
10.8%
29
24.2%
22
50
55
28
25
11
1
50
40
19
11
9
14
25
33
13
26
23
39
18.3%
41.7%
45.8%
23.3%
20.8%
9.2%
0.8%
41.7%
33.3%
15.8%
9.1%
7.5%
11.7%
20.8%
27.5%
10.8%
21.7%
19.2%
32.5%
58
48.4%
56
46
15
3
5
81
34
6
35
7
3
4
49
8
8
46.7%
38.3%
12.5%
2.5%
4.2%
67.5%
28.3%
5.0%
29.2%
5.8%
2.5%
3.3%
40.8%
6.7%
6.7%
194
Table 7
ANOVA results of product information and purchase intention.
Reference information
Comparison and evaluation
Meet the demand
Consider buying
Table 9
ANOVA results of price range and purchase intention.
Sig.
3.187
2.583
3.641
4.750
0.000
0.000
0.000
0.000
observed consumers' behavior under different simulated environments affecting purchase intentions, taking different factors from
economics, marketing, and information systems and examining
their direct and interaction roles in inuencing purchase and
repurchase intentions Furthermore, examining the occurrence of
post-auction disputes, the role of the mediators and the strategies
at their disposal were also studied to see its effects on repurchase
intentions. This is an important aspect of online shopping, as
increased repurchase intentions is dependent on several different
factors (Chiu et al., 2014; Hsu et al., 2014), and can ensure the future
of an online business (Hsu et al., 2014; Kim et al., 2012; Shin et al.,
2013).
As the number of consumers using online auction websites
grows over time, so do their abilities to nd more product information on items for purchase, especially since repeat customers
gradually become better in searching, comparing, and evaluating
products (Chiu et al., 2014). The results show that the accuracy of
sellers' information and products' information mitigate purchase
risks and improve purchase intentions. Furthermore mediation
strategies and competitive pressures help to develop customers'
loyalty encouraging repurchase intentions, all consistent with
previous literature. These effects are further bolstered when
trustworthiness comes into the picture, further implying that
trustworthiness, earned by superior delivery of quality, also
encourage repurchase intentions (Chiu et al., 2013; Chiu et al.,
2012).
Several elements of this online auction process are considered
here. Overall, the ndings indicate that when consumers purchase
a certain product, they usually refer to multiple sources to make
evaluations. This is most especially true for unbranded items
available for purchase. Firstly, consumers often use store names and
brands as important factors in judging a product (Shiau & Luo,
2012), indicating that familiarity is an important consideration
(Chiu et al., 2012; Yoo & Kim, 2014). This was further evidenced by
the results where product evaluations, information volume, and
price information does not matter when examining branded
products. As consumers' familiarity with a seller improves, purchase intentions also tend to improve. The same can be said with
comparing price levels, again especially for unbranded items.
Thirdly, as sellers enhance the security, privacy, and feedbacks capabilities, the consumers' desire to purchase and likelihood of a
repurchase will also improve (Chiu et al., 2014). In summary, information on the brand is the rst thing customers tend to look for.
Otherwise, other pieces of information, such as prices and seller
reputations will be considered.
Table 8
ANOVA results of seller evaluation and purchase intention.
Evaluation
Service
Be careful
Behavior
Overall
Sig.
3.035
4.887
1.549
4.726
4.725
0.000
0.000
0.048
0.000
0.000
No big difference
Big difference
Higher
Lower
Sig.
1.410
1.911
1.485
1.605
0.096
0.006
0.066
0.036
Table 10
ANOVA results of brand and purchase intention.
Loyal customer
Purchase ability
Willing to buy
Difference
Sig.
1.676
4.247
5.383
7.161
0.024
0.000
0.000
0.000
Mediation Strategy
Level of trust
Media richness
195
Table 14
ANOVA results of mediators.
Sig.
Source
Sig.
2.083
1.349
1.052
0.009
0.164
0.412
Media
Concert
Condence
Media* concert
Media* condence
Concert* condence
Media* concert* condence
0.507
10.971
4.431
1.044
7.421
1.690
0.245
0.478
0.001
0.038
0.309
0.007
0.196
0.621
Table 12
ANOVA results for Yahoo Auction.
Source
Sig.
Phone
Information
Price
Vendor
Phone* information
Phone* price
Information* price
Phone* information* price
Phone* vendor
Information* vendor
Phone* information* vendor
Price* vendor
Phone* price* vendor
Information* price* vendor
Phone* information* price* vendor
8.193
5.214
121.232
44.484
.028
.185
.141
1.372
.945
.479
.945
.430
.700
.028
.022
0.005
0.023
0.000
0.000
0.867
0.668
0.708
0.243
0.332
0.490
0.332
0.513
0.404
0.867
0.882
Table 13
ANOVA results for Pchome & eBay.
Source
Sig.
Phone
Information
Price
Vendor
Phone* information
Phone* price
Information* price
Phone* information* price
Phone* vendor
Information* vendor
Phone* information* vendor
Price* vendor
Phone* price* vendor
Information* price* vendor
Phone* information* price* vendor
14.777
39.656
130.552
33.583
7.106
8.564
.002
.068
.063
.000
.013
.114
.128
2.299
.674
0.000
0.000
0.000
0.000
0.008
0.004
0.962
0.795
0.802
1.000
0.908
0.736
0.721
0.131
0.413
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