• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.437-452
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• 2006

Previous research on two-sided markets has, for the most part, concentrated on indirect network externalities between buyers and sellers. This paper considers direct competition effect among sellers and among buyers as well as indirect network externalities. We develop an analytic model of C2C e-marketplaces and examine whether a monopolistic incumbent could successfully deter new entry into its market. We find that the effect of the number of sellers or buyers on the price of goods depends on whether sellers have decided to sell the goods using an auction or fixed pricing rule and on the characteristics of the goods. We argue that when the effect of the number of sellers on the price of goods is significantly larger than that of buyers, there is a high possibility of entry. In particular, we show that entry becomes more difficult to deter as fixed-price format is adopted more frequently or the proportion of collectables is relatively low.

• Information Systems Review
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• v.13 no.2
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• pp.17-41
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• 2011

A review of the related literature indicates that consumers' risk perceptions are largely affected by product involvement. This study investigates the impact of product involvement on required trust level and the online merchant choice. We developed a conceptual model that depicts the nomological relationships among product involvement, required trust level, and the online merchant choice, and formulated three hypotheses based on the conceptual model. An empirical study designed to accomplish the research objectives has been conducted using a questionnaire survey with 230 students in a university in Korea. The findings indicated that high-involvement products have higher trust level as required by consumers than low-involvement products, that consumers buying high-involvement products prefer digital storefronts, and that consumers buying low-involvement products prefer B2C e-marketplaces. The paper offers implications for academics as well as practitioners, based on the research results.

• Information Systems Review
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• v.11 no.3
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• pp.83-106
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• 2009

Trust is becoming one of the critical forces that drive consumers into purchases in e-marketplaces, as consumers face uncertainty associated with buying online from unknown sellers. In this paper we propose a consumer trust model specifically designed for an online marketplace. It aims at examining how intermediary and site characteristics of an e-marketplace affect factors of trustworthiness, and understanding the relationship between trustworthiness factors and trust in intermediary. Findings from an empirical analysis indicate that both intermediary and site characteristics are positively associated with factors of trustworthiness - namely, competence, integrity, and benevolence. In addition, all the three factors of trustworthiness were found to have positive relationship with overall trust in intermediary; in particular, integrity had higher association with trust than the other two factors. The paper concludes with suggestions for building consumer trust for the owners of online marketplaces.