How people select their payment methods in online auctions? An exploration of eBay transactions

Author

Li, Haizheng ; Zhang, Han

Author_Institution

Sch. of Econ., Georgia Inst. of Technol., Atlanta, GA, USA

fYear

2004

fDate

5-8 Jan. 2004

Abstract

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

Keywords

Internet; electronic money; transaction processing; eBay transaction; electronic market; online auction; online payment; payment attribute; payment choice; probit model; product attribute; product quality; trader characteristics; Consumer electronics; Costs; Credit cards; Educational institutions; Electronic commerce; Internet; Marketing and sales; Security; Technology management; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences, 2004. Proceedings of the 37th Annual Hawaii International Conference on

Print_ISBN

0-7695-2056-1

Type

conf

DOI

10.1109/HICSS.2004.1265432

Filename

1265432