Linking the Popularity of Online Trading with Consumers’ Concerns for Reputation and Identity Theft

Abstract

Although online trading has its benefits, such as convenience and the ability to compare prices online, there are still many concerns about the integrity of the buyer, the seller and/or the online action service provider (OASP). This paper investigates these relationships via multivariate statistical analysis of a stratified sample of working professionals, resulting in 198 useable questionnaires from an initial sampling frame of over 550 professional personnel from five relatively large Pittsburgh, Pennsylvania, firms. The author found that buyers that felt feedback systems were viable were more willing to engage in online trading activities and pay a premium price for merchandise being sold by a seller with a better reputation, regardless of gender. Customers were especially concerned with the total price, including shipping cost, regardless of gender. In terms of the convenience of payment method, electronic forms were preferred in transacting online trading activities, regardless of age and gender.

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