Investigating customer satisfaction dimensions with service quality of online auctions: an empirical investigation of e-Bay

Abstract

Over the recent years, C2C (consumer-to-consumer) electronic market has increased rapidly, and has become the most active segment of e-markets today. Despite the growth and popularity of online auctions and especially of e-Bay, which has been considered to be one of the most profitable e-commerce companies, the online auction environment is risky and transactions are complex due to the fact that buyer and seller do not know each other and they are not familiar. Although many studies have examined the impact of e-service quality on customer satisfaction in B2C (business-to-consumer) or B2B (business-to-business) commerce, the literature is insufficient in the case of C2C commerce. However, a number of authors have conducted research in C2C and particularly in e-Bay but in all of the cases, data source from e-Bay’s feedback system was employed in order to investigate service quality issues. Nevertheless, in this study a field research was conducted in order to collect the necessary data and thus reducing possible bias. The purpose of this paper is to examine some determinants of satisfaction with service quality dimensions in the online auction environment. More specifically, this paper is examining the case of e-Bay, in order to have a better understanding of buyers’ satisfaction in this risky environment. The paper’s aim is accomplished through an empirical investigation of a sample of 2,099 buyers of e-Bay, examining buyers’ expectation and perception levels towards service quality of e-Bay. Gap analysis was first employed in order to identify users’ disconfirmation dimensions in the online auction market place. Some research hypotheses are formulated to find out whether these dimensions have a positive disconfirmation. In most of the cases a positive disconfirmation is tracked down. Secondly, factor analysis was utilized to identify broad determinants of e-Bay service quality. The pool of the initial items deduced to four factors. These factors are, to a degree, differentiated in the Greek environment from factors found in other studies. A second round of research hypotheses are formulated again to find out whether those factors are related to the users’ disconfirmation dimensions. Finally, a new theoretical model is proposed based on the above mentioned hypotheses.