Decision making in online auctions

• Published in: Management decision 2011-05, Vol.49 (5), p.784-800
• Main Authors: Huang, Yi-Chun, Jim Wu, Yen-Chun, Wang, Yu-Chun, Boulanger, Nolan Christopher
• Format: Article
• Language: English
• Subjects: Alliances; Asymmetry; Auctions; Behavior; Consumer behavior; Consumers; Credibility; Customers; Decision making; Electronic commerce; Information industry; Internet; Knowledge management; Management theory; Product quality; Purchasing; Research methodology; Shopping; Statistical analysis; Structural equation modeling; Studies; Technology Acceptance Model; Websites
• ISSN: 0025-1747; 1758-6070
• DOI: 10.1108/00251741111130850

Purpose - The aim of this study was to draw on the theory of planned behavior (TPB) and attempt to identify the factors influencing the customer decision to purchase via online auctions, focusing on how managers selling via online auctions can modify product positioning and promotion decisions in order to make their offerings more congruent with these factors.Design methodology approach - The study employed a survey instrument to collect data from Yahoo!Kimo website consumers in Taiwan, obtaining 450 samples which were analyzed with structural equation modeling.Findings - Attitude toward online auctions, perceived behavioral control and past related experiences significantly and positively influence the intention to purchase on online auctions, whereas subjective norm does not have such influence. Additionally, past related experiences have a positive effect on perceived behavioral control.Research limitations implications - There has been a relative dearth of work on online auction customer behavior. By applying the TPB to online auction research, it was empirically supported that behavioral intention to purchase via online auctions is determined by attitude and perceived behavior control. Past related experiences were further integrated, discovering that they can strengthen perceived behavioral control.Practical implications - Recommendations are put forward in order to help better align product positioning and promotion decisions in online auctions with customer attitudes, perceived behavioral control, and past related experiences. These constructs may also be capable of explaining employee actions in general managerial contexts, thus extending the contribution of the paper beyond the limited world of online auctions.Originality value - This study integrated online auctions, the theory of planned behavior and consumer decision-making philosophies in order to develop and empirically test a theoretical framework of consumer decision making in online auctions.