Information Asymmetry and Its Implications in Online Purchasing Behaviour: A Country Case Study
DOI:
https://doi.org/10.32015/JIBM/2020-12-1-9Keywords:
information asymmetry, online purchasing, decision making, AlbaniaAbstract
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.
References
Arkelof, G. (1970). The market for "Lemons": Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 488-500.
Becher, S. I. (2008). Asymmetric Information in Consumer Contracts: The Challenge That Is Yet To Be Met. American Business Law Journal, 723–774.
Chen, C. A. (2009). Information-oriented Online Shopping Behavior in Electronic Commerce Environment. Journal of Software, 307-314.
Chiappori, P. A., & Salanie, B. (2000). Testing for Asymmetric Information in Insurance Markets. Journal of Political Economy, 56-78.
Clackson, G., Jacobsen, T. E., & Batcheller, A. L. (2007). Information Asymmetry and Information Sharing. Government information Quarterly, 827-839.
Directory of Customs. (2018). Blerjet online dhe dërgesat postare. Retrieved from <http://www.dogana.gov.al/c/226/blerjet-online>
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial Behavior, agency cost and ownership structure. Journal of Financial Economics, 305-360.
Kotler, P. & Amstrong, G. (2012). Principles of Marketing. 14th ed. Upper Saddle River, NJ: Prentice Hall.
Lewis, G. (2011). Asymmetric Information, Adverse Selection and Online Disclosure: The case of eBay Motors. American Economic Review, 1535–1546.
Naiyi, Y. (2004). Dimensios of Consumer's Perceived Risk in the Online Shopping. Journal of Electronic Science and Technology of China, 177-182.
Nowak, K. L., & McGloin, R., (2014). The Influence of Peer Reviews on Source Credibility and Purchase Intention. Societies. 4, 689–705.
Posta Shqiptare. (2016). Albanian Postal Market Statistical Indicators. Retrieved from <https://www.postashqiptare.al/>
Revista Monitor. (2017). Taksa rrudhi blerjet online, ranë me 12% në janar- maj. Retrieved from <http://www.monitor.al/taksa-rrudhi-blerjetonline-rane-12-ne-janar-maj/>
Solomon, M., Bamossy, G., Askegaard, S., & Hogg, M. K. (2006). Consumer Behavior: A European Perspective. Pearson Education Limited.
Tsao, H. Y., Leyland, F. P., & Berthon, P. (2002). An experimental study of brand signal quality of products in an. The International Journal of Management Science, 397- 405.
Downloads
Published
Issue
Section
License
The authors retain rights under the Creative Commons Attribution-ShareAlike 4.0 International CC BY-SA 4.0. Authors assign copyright or license the publication rights in their articles, including abstracts, to MIP=JIBM. This enables us to ensure full copyright protection and to disseminate the article, and of course MIP=JIBM, to the widest possible readership in electronic format. Authors are themselves responsible for obtaining permission to reproduce copyright material from other sources.