WHY DO ORDER EFFECTS MATTER IN ONLINE AUCTIONS? A PROPOSED MODEL

摘要

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