Can Web Seals Work Wonders for Small E-Vendors in the Online Trading Environment? A Theoretical Approach

Can Web Seals Work Wonders for Small E-Vendors in the Online Trading Environment? A Theoretical Approach

Xiaorui Hu, Yuhong Wu
Copyright: © 2008 |Pages: 20
DOI: 10.4018/jebr.2008070102
OnDemand:
(Individual Articles)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

Trust is a major issue in e-markets. It is an even more prominent issue when online shoppers trade with small, less-established e-vendors. Empirical studies on Web seals show that small e-vendors could promote consumers’ trust and increase Web sales by displaying Web seals of approval. This article takes a theoretical approach to examine online trading when seals are used in e-markets. We establish an online shopper’s decision-making model to reveal the online shopper’s decision-making criteria. Criteria include when to trade with a well-established e-vendor and when to trade with a small, less-established e-vendor, with or without a Web seal. Based on our analysis of the research results, we reveal the price effect, the seal effect, the reputation effect, and their impact on a shopper’s decision-making process. Meanwhile, a social welfare analysis is conducted to further demonstrate the positive impact of Web seals on small, less-established e-vendors.

Complete Article List

Search this Journal:
Reset
Volume 20: 1 Issue (2024)
Volume 19: 1 Issue (2023)
Volume 18: 4 Issues (2022): 2 Released, 2 Forthcoming
Volume 17: 4 Issues (2021)
Volume 16: 4 Issues (2020)
Volume 15: 4 Issues (2019)
Volume 14: 4 Issues (2018)
Volume 13: 4 Issues (2017)
Volume 12: 4 Issues (2016)
Volume 11: 4 Issues (2015)
Volume 10: 4 Issues (2014)
Volume 9: 4 Issues (2013)
Volume 8: 4 Issues (2012)
Volume 7: 4 Issues (2011)
Volume 6: 4 Issues (2010)
Volume 5: 4 Issues (2009)
Volume 4: 4 Issues (2008)
Volume 3: 4 Issues (2007)
Volume 2: 4 Issues (2006)
Volume 1: 4 Issues (2005)
View Complete Journal Contents Listing