<abstract xmlns="http://www.w3.org/1999/xhtml"><p> There is a growing interest in behavioural economics contradicting the empirical prediction of rational choice theory once applied to online auctions. The issue is of particular relevance due to the large use of online auctions and the anticipated growth in the future. Online auctions combine the conventional auction model with information technology. However, information asymmetry within such auctions causes risks and uncertainties that influence consumer purchase intentions. The research investigates online consumers’ behaviour. The Authors suggest that due to the high perceived risk of the online buying process consumers are prompted to use cues of seller’ reputation. In a series of six experiments conducted via the auction site Allegro.pl in Poland a number of signals from auction web pages has been manipulated to influence purchase intention. The results suggest that several signals can be used to stimulate online customers’ behaviour. The results of these experiments indicate that buyers are more susceptible to the influence of “visual” signals than signals that require greater involvement of the buyer (to read information). The conducted experiments contribute to a more comprehensive understanding of online auction users’ behaviour. And finally it provides some managerial implications to increase online auction effectiveness from the seller’s perspective.</p></abstract>

There is a growing interest in behavioural economics contradicting the empirical prediction of rational choice theory once applied to online auctions. The issue is of particular relevance due to the large use of online auctions and the anticipated growth in the future. Online auctions combine the conventional auction model with information technology. However, information asymmetry within such auctions causes risks and uncertainties that influence consumer purchase intentions. The research investigates online consumers’ behaviour. The Authors suggest that due to the high perceived risk of the online buying process consumers are prompted to use cues of seller’ reputation. In a series of six experiments conducted via the auction site Allegro.pl in Poland a number of signals from auction web pages has been manipulated to influence purchase intention. The results suggest that several signals can be used to stimulate online customers’ behaviour. The results of these experiments indicate that buyers are more susceptible to the influence of “visual” signals than signals that require greater involvement of the buyer (to read information). The conducted experiments contribute to a more comprehensive understanding of online auction users’ behaviour. And finally it provides some managerial implications to increase online auction effectiveness from the seller’s perspective.

The Role of Signals in Online Auction Purchase Decisions

University of Szczecin Institute of IT in Management Faculty of Economics and Management Mickiewicza 64, 71-101 Szczecin, Poland

West Pomeranian Business School Department of Management Faculty of Economics and IT Żołnierska 53, 71-210 Szczecin, Poland

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The Role of Signals in Online Auction Purchase Decisions"}

There is a growing interest in behavioural economics contradicting the empirical prediction of rational choice theory once applied to online auctions. The...

The Role of Signals in Online Auction Purchase Decisions

Published Online: Dec 30, 2015

Page range: 53 - 68

Received: Oct 02, 2014

Accepted: Apr 29, 2015

DOI: https://doi.org/10.1515/foli-2015-0019

Keywords
online auction, signalling theory, online auction buying process, purchase intention

© University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Role of Signals in Online Auction Purchase Decisions

Published Online: Dec 30, 2015

Page range: 53 - 68

Received: Oct 02, 2014

Accepted: Apr 29, 2015

DOI: https://doi.org/10.1515/foli-2015-0019

Keywordsonline auction, signalling theory, online auction buying process, purchase intention

© University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
online auction, signalling theory, online auction buying process, purchase intention