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Wednesday, July 13 • 15:31 - 17:00
Applying Warranting Theory to Online Third Party Marketplaces: The Effects of Information Uniqueness and Product Type

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Location: PSH (Professor Stuart Hall Building) - LG02, 
Goldsmiths, University of London, Building 2
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Contributors:
  • W. Scott Sanders, University of Louisville, United States
  • Gopi Chand Nutakki, University of Louisville, United States
  • Olfa Nasraoui, University of Louisville, United States

Online third party marketplaces link buyers and sellers by providing a neutral platform for exchange. However, this requires buyers to assess the quality of an unknown seller’s goods without being able to handle or sample them. Recent research has proposed extending the warranting principle, an emerging theory of online interpersonal impression formation, to the judgements consumer make about products online. The warranting principle holds that information that is more difficult to manufacture or manipulate, such as an individualized photo of an auction item, should be more informative to a consumers judgement of the product than information which is easy to falsify or manipulate. While this theoretical extension assumes that all online goods are capable of being assessed in the same way, some goods (i.e. experience goods) are more difficult to assess in online marketplaces because they must be experienced before their true quality and characteristics can be known. The current study examines 2,401 completed auctions from eBay revealing that the relationship between warranting cues and price discounts is moderated by the type of good being sold. The theoretical contributions and limitations of the study are discussed.

Wednesday July 13, 2016 15:31 - 17:00
PSH (Professor Stuart Hall Building) - LG02 Goldsmiths University, Building 2

Attendees (6)