WHY DO ORDER EFFECTS MATTER IN ONLINEAUCTIONS? A PROPOSED MODEL

摘要

E-commerce is set to boom, particularly online auctions. While there is a wealth of research on e-commerce,rnthere has been little research on the presentation order effects (primacy and recency) of information onrnconsumers in an e-commerce context, specifically online auctions. This issue is significant, as prior studies inrnthe field of cognition have established that the order in which information is presented affects informationrnretention in memory. These order effects should become particularly relevant in an e-commerce setting whereinrnconsumers are exposed to huge amounts of information and consequently make decisions based on suchrninformation. Specifically, the objective of this study is to propose a model that posits the order effects of ratingsrn(primacy and recency) on the reputation of a seller in an online auction setting. In addition, the study alsornexamines the effect of reputation of a seller on the bid price offered by a buyer and finally its effect on trustrnbetween buyers and sellers.