In C2C markets, there are some forms of risk relief services to reduce the risk in
online business. The most commonly used is online escrow service (OES), which is a
third-party service that authorizes payment only after the buyer receives and approves
the goods (Hu et al., 2004). OES was adopted by some major online marketplaces like
eBay.com. Taobao.com also integrated Alipay, which is an online third-party payment
system similar to OES to eliminate the risk and enhance the payment safety. The risk
relief services help to reduce the fraud in business transactions. In BIN auctions,
buyers may choose to use the risk relief service to avoid the risk of being cheated and
enhance payment safety. To understand what factors affect consumers’ usage of risk
relief service is important to both the online marketplace and the risk relief service
providers. Previous research found that buyers’ usage of risk relief service is
determined by their perceived risk for the transactions (Antony et al., 2006). However,
it did not show how perceived risk has impact on the buyer’s BIN purchase. In
addition, the previous research used American college students as subjects for
experiment. It is not clear whether the findings can be applied to consumers from other
countries, for example, China.
In C2C markets, there are some forms of risk relief services to reduce the risk inonline business. The most commonly used is online escrow service (OES), which is athird-party service that authorizes payment only after the buyer receives and approvesthe goods (Hu et al., 2004). OES was adopted by some major online marketplaces likeeBay.com. Taobao.com also integrated Alipay, which is an online third-party paymentsystem similar to OES to eliminate the risk and enhance the payment safety. The riskrelief services help to reduce the fraud in business transactions. In BIN auctions,buyers may choose to use the risk relief service to avoid the risk of being cheated andenhance payment safety. To understand what factors affect consumers’ usage of riskrelief service is important to both the online marketplace and the risk relief serviceproviders. Previous research found that buyers’ usage of risk relief service isdetermined by their perceived risk for the transactions (Antony et al., 2006). However,it did not show how perceived risk has impact on the buyer’s BIN purchase. Inaddition, the previous research used American college students as subjects forexperiment. It is not clear whether the findings can be applied to consumers from othercountries, for example, China.
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