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ABSTRACT
Despite the popularity of online auctions as a new e-commerce operating model, few studies have explored why sellers intend to pay for the services of particular auction sites, especially while other free auction services exist. Developed on the basis of the theory of perceived value, this study includes network externalities in seller perceptions and explores why sellers intend to pay for these services. This study employed structural equation modeling (SEM) to investigate a research model based on a survey of 336 online sellers. The results show that perceived network externalities affecting sellers' intention to pay are composed of perceived benefits (usefulness and social benefit), perceived costs (searching cost, monitoring cost, and adapting cost), and perceived value of selling through the website auction. Another valuable finding was that expert sellers and non-expert sellers differ in their perceptions of the value of online auctions. The implications of these findings are discussed.
Keywords: perceived value, network externalities, intention to pay, online auction
1. Introduction
The rapid development of consumer-to-consumer (C2C) e-commerce in the past few years, especially online auctions, has substantially increased the number of online auction sellers [Rauniar et al. 2009; Sinclair 2007]. The e-commerce services provided by online auctions are typically free to sellers. Recently, however, some C2C sites have begun asking sellers to pay for e-commerce services, which has become a vital revenue source [Gupta & Mela 2008]. Most studies examining these sites, however, have analyzed only the buyers' intention to pay for website services, rather than that of the sellers. Therefore, this study investigated factors affecting sellers' intention to pay when using online auction services.
Recent research has found that network externalities and customer value are two critical factors affecting the success of online auctions [Gupta & Mela 2008]. Network externalities, including various commodities and numbers of buyers and sellers, have become key determinants of online auction success. Many scholars believe that network externalities are crucial to the survival of digital industries such as e-commerce [Gupta & Mela 2008; Schmitz & Latzer 2002], and online community sites [Hong & Kim 2004; Westland 2010]. Some scholars have indicated that network externalities are essential for e-commerce companies, such as eBay, because network externalities determine the popularity of their websites [Schmitz & Latzer 2002]. The...