The effect of perceived risk, security and trust on the intention to transact with an auction site

Abstract

The ongoing advances of technology, the adoption of internet as a shopping medium in the Maltese local environment continuously raises the concerns and debates amongst organisations but also amongst consumers whose lifestyles and attitudes change over time and these influence behavioural changes. This study investigates the relationship between the local consumers and online automated organizations - auction sites, thus it can be categorized as part of market research. It tries to identify certain problems and opportunities of such a market especially those related to 'transactions and pricing', 'perceived risk and security' and 'trust' of such a purchasing medium. It aims to improve on the understanding businesses have of the popularity, or otherwise, online auction sites have locally obtained. An array of the literature both relating to the internet and studies previously conducted on the main issues of concern was reviewed in order to produce a relevant instrument to measure these constructs. The data collected from 200 respondents was analysed. Conclusions regarding the effects of the independent variables being addressed were outlined and presented. Results showed that online businesses are widely accepted although not always trusted or perceived to be risk free. With regards to the concept of introducing local online auctions, respondents would be largely affected by pricing factors.