Factors affecting payment choices in online auctions: A study of eBay traders

Han Zhang*, Haizheng Li

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

36 Citations (Scopus)

Abstract

Online payments are a critical issue in electronic markets. This research investigates online payment choices using a probit model based on survey data we collected from eBay users. We discuss payment choices made by trading partners based on risk, convenience and cost dimensions. Then, we analyze how product attributes, traders' characteristics, and payment attributes affect payment choice. Our findings suggest that product attributes, especially uncertainties associated with product quality, appear to have a stronger influence on payment choices than traders' characteristics. We also find that a seller's reputation rating does not significantly influence actual payment choices, but it does affect the payment options offered by a seller.

Original languageEnglish
Pages (from-to)1076-1088
Number of pages13
JournalDecision Support Systems
Volume42
Issue number2
DOIs
Publication statusPublished - Nov 2006

Scopus Subject Areas

  • Management Information Systems
  • Information Systems
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Information Systems and Management

User-Defined Keywords

  • eBay
  • Online auction
  • Payment method
  • Probit model

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