Information Asymmetry and Its Implications in Online Purchasing Behaviour: A Country Case Study

  • Esmir Demaj Lecturer, Department of Business Administration, Epoka University, Rr. Tiranë-Rinas, Km. 12, 1032, Tirana, Albania https://orcid.org/0000-0001-9005-7892
  • Vilma Manjani Epoka University, Rr. Tiranë-Rinas, Km. 12, 1032, Tirana, Albania, and Goethe University Frankfurt, Theodor-W.-Adorno-Platz 1, 60323 Frankfurt am Main, Germany
Keywords: information asymmetry, online purchasing, decision making, Albania

Abstract

The objective of this study is to analyse how certain variables in the online market affect the decision-making trajectory and actions toward reducing the information asymmetry faced in online purchasing. A survey and observation are conducted in order to understand the behavior and perceptions of online buyers toward the information given in online platforms. Descriptive and correlation analysis have been employed in order to evaluate the data collected and test the correlation between variables of the research model. It results that most participants take for granted the fact that sellers have more information than them when entering into a transaction agreement and this makes them feel inferior towards the superior power sellers possess in such interactions. This makes the traditional markets more preferred for them, however multiple sources such as reviews and ratings result as an alternative way of reducing the perceived information asymmetry.

Author Biography

Esmir Demaj, Lecturer, Department of Business Administration, Epoka University, Rr. Tiranë-Rinas, Km. 12, 1032, Tirana, Albania

E. Demaj is currently lecturing at the Department of Business Administration Department and is the Head of Research and Projects Office at Epoka University. His PhD focus is on dynamic managerial capabilities, sustainable innovation and ambidexterity. Mr. Demaj has been involved in teaching courses like Management and Organization, Supply Chain Management, Operations Research, Project Management, and Organizational Behavior. His research interests among others include; Philosophy of Management Thought, Project Management, ERP, Dynamic Capabilities, Innovation, Sustainability etc.

He has participated in many international conferences and is author of several papers and conference presentations.

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Published
2020-06-30
How to Cite
Demaj, E. and Manjani, V. (2020) “Information Asymmetry and Its Implications in Online Purchasing Behaviour: A Country Case Study”, Mednarodno inovativno poslovanje = Journal of Innovative Business and Management, 12(1), pp. 72-82. doi: 10.32015/JIBM/2020-12-1-9.
Section
Original article