Decision making in online auctions

Abstract

PurposeThe aim of this study was to draw on the theory of planned behavior (TPB) and attempt to identify the factors influencing the customer decision to purchase via online auctions, focusing on how managers selling via online auctions can modify product positioning and promotion decisions in order to make their offerings more congruent with these factors.Design/methodology/approachThe study employed a survey instrument to collect data from Yahoo!Kimo website consumers in Taiwan, obtaining 450 samples which were analyzed with structural equation modeling.FindingsAttitude toward online auctions, perceived behavioral control and past related experiences significantly and positively influence the intention to purchase on online auctions, whereas subjective norm does not have such influence. Additionally, past related experiences have a positive effect on perceived behavioral control.Research limitations/implicationsThere has been a relative dearth of work on online auction customer behavior. By applying the TPB to online auction research, it was empirically supported that behavioral intention to purchase via online auctions is determined by attitude and perceived behavior control. Past related experiences were further integrated, discovering that they can strengthen perceived behavioral control.Practical implicationsRecommendations are put forward in order to help better align product positioning and promotion decisions in online auctions with customer attitudes, perceived behavioral control, and past related experiences. These constructs may also be capable of explaining employee actions in general managerial contexts, thus extending the contribution of the paper beyond the limited world of online auctions.Originality/valueThis study integrated online auctions, the theory of planned behavior and consumer decision‐making philosophies in order to develop and empirically test a theoretical framework of consumer decision making in online auctions.