How do you feel when you see a list of prices? the interplay among price dispersion,perceived risk and initial trust in Chinese C2C market |
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| Institution: | 1. Department of Computer Science, University of Saskatchewan, 110 Science Place, Saskatoon, SK, Canada S7N 5C9;2. School of Economics and Management, Nanjing University of Science and Technology, China;1. ISCIA – Institute of Information Sciences and Administration, 3810 Aveiro, Portugal;2. DEGEI, University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal;3. GOVCOPP, DEGEI, University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal;1. Department of Management, Information and Production Engineering, University of Bergamo, Bergamo, Italy;2. Department of Management, Information and Production Engineering, Cisalpino Institute for Comparative Studies in Europe, University of Bergamo, Bergamo, Italy;1. College of Business Administration, Marquette University, Milwaukee, WI 53201-1881, USA;2. Sheldon B. Lubar School of Business, University of Wisconsin–Milwaukee, Milwaukee, WI 53201, USA;1. Marketing, Brock School of Business, Samford University, 800 Lakeshore Drive, Birmingham, AL 35229, USA;2. Management, School of Business Administration, University of Mississippi, 236 Holman Hall, University, MS 38677, USA;3. School of Business & Engineering, University of Southern Indiana, 8600 University Boulevard, Evansville, IN 47712, USA;1. Faculty of Computing, Universiti Teknologi Malaysia, Malaysia;2. Faculty of Management, Tehran Central Branch, Iran;3. Department of Management, Qeshm International Branch, Iran;1. Wolfson Centre for Clinical and Cognitive Neuroscience, School of Psychology, Bangor University, UK;2. Department of Psychology, University of Queensland, Brisbane, Australia;3. Laboratoire de Psychologie et NeuroCognition (LPNC), Université Grenoble Alpes, France |
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| Abstract: | The issues of trust fraud, product genuineness and price dispersion jointly make Chinese C2C buyers difficult to identify trustworthy sellers with a low price. Little is known about the generation of initial trust when buyers search products and receive lists of widely ranged prices. This study proposes a theoretical model to explain how price dispersion interacts with other factors in C2C purchase, such as initial trust, perceived risk, perceived value and purchase intention. Product type is considered as a moderator. 261 students were invited in a survey-based experiment. The results from PLS analysis show that price dispersion negatively affects perceived value, whilst, positively affects perceived risk, which further influences perceived value negatively. Price dispersion also negatively influences initial trust through perceived risk. Moreover, the negative effects of price dispersion are stronger when buyers purchase high-touch products. |
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| Keywords: | Consumer to consumer Trust Price dispersion Purchase intention Perceived risk |
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