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Exploring the online bidder’s repurchase intention: a cost and benefit perspective

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Abstract

The success of online auctions is founded on bidders enjoying shopping benefits and on creating bidders’ loyalty. This study investigates the importance of bidders’ repurchase intention along with the corresponding cost and benefit aspects. Therefore, this study integrates transaction cost economics and expectancy confirmation theory to understand the determinants of bidders’ repurchase intention in online auctions. We collected data from a survey questionnaire, and a total of 594 valid questionnaires were analyzed. Partial least squares structural equation modeling was used to assess the relationships of the research model. The findings show that satisfaction has a significant influence on bidders’ repurchase intention, while transaction cost is negatively associated with repurchase intention. Bidders’ satisfaction is determined by confirmation and by the e-service quality of both auctioneers and sellers. Moreover, an auctioneer’s asset specificity and product uncertainty are positively associated with the bidder’s perceived transaction cost. The interaction frequency between bidder and seller is negatively associated with the bidder’s transaction costs. The research results provide a novel approach to understanding bidders’ benefit and cost dimensions in online auction marketplaces. Our findings could guide online auctioneers and sellers in enhancing their offerings.

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Authors and Affiliations

  1. Department of International Business, Ming Chuan University, 250 Zhong Shan N. Rd., Sec. 5, 111, Taipei, Taiwan, Republic of China

    Chiahui Yen

  2. Department of Information Management, National Kaohsiung First University of Science and Technology, No.2, Jhuoyue Rd., Nanzih Dist., 811, Kaohsiung City, Taiwan, Republic of China

    Meng-Hsiang Hsu

  3. Department of Tourism Information, Aletheia University, No.32, Chen-Li St. Tamsui, 251, Taipei, Taiwan, Republic of China

    Chun-Ming Chang

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  1. Chiahui Yen
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  3. Chun-Ming Chang
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Correspondence to Chiahui Yen.

Appendix: Survey questionnaire

Appendix: Survey questionnaire

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Yen, C., Hsu, MH. & Chang, CM. Exploring the online bidder’s repurchase intention: a cost and benefit perspective. Inf Syst E-Bus Manage 11, 211–234 (2013). https://doi.org/10.1007/s10257-012-0201-0

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