Product factor: product price
Product is the target for trading in electronic commerce. The most important
characteristics of a product are its type and price. These characteristics affect
consumers’ purchase in physical marketplaces. Lim (2003) indicated that perceived
risk is influenced by product characteristics, such as product price and type. C2C
market is considered risky due to the potential fraudulent activities. In online BIN
auctions, the product price is related to the consequence dimension of perceived risk
(Cunningham, 1967), and it represents the potential loss if fraud occurs. Product price is
also related to the uncertainty dimension, since the more valuable the product, the higher the probability that fraud occurs. Thus, it is reasonable to believe that product
price has influence on the buyer’s perceived risk level for the BIN transaction.
Product factor: product priceProduct is the target for trading in electronic commerce. The most importantcharacteristics of a product are its type and price. These characteristics affectconsumers’ purchase in physical marketplaces. Lim (2003) indicated that perceivedrisk is influenced by product characteristics, such as product price and type. C2Cmarket is considered risky due to the potential fraudulent activities. In online BINauctions, the product price is related to the consequence dimension of perceived risk(Cunningham, 1967), and it represents the potential loss if fraud occurs. Product price isalso related to the uncertainty dimension, since the more valuable the product, the higher the probability that fraud occurs. Thus, it is reasonable to believe that productprice has influence on the buyer’s perceived risk level for the BIN transaction.
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