Trust, risk and transaction intention in consumer-to-consumer e-marketplaces: An empirical comparison between buyers’ and sellers’ perspectives

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Purpose: The purpose of this paper is to compare the relative impacts of trust and risk on individual’s transaction intention in consumer-to-consumer (C2C) e-marketplaces from both the buyers’ and the sellers’ perspectives. Design/methodology/approach: Two surveys were used to collect data regarding buyers’ and sellers’ perceptions and transaction intentions at a typical C2C e-marketplace. Partial least squares was used to analyze the data. A complementary qualitative study was conducted to triangulate the results from the quantitative study. Findings: Institution-based trust (IBT) exerts a stronger influence on transaction intentions for buyers than for sellers. Sellers perceive a stronger impact of trust in intermediary (TII) than buyers on transaction intentions. The impacts of perceived risk in transactions are not different between buyers and sellers. Furthermore, IBT mediates the impacts of TII and perceived risk on transaction intentions for buyers. Research limitations/implications: The results indicate that the impacts of trust and risk on transaction intention in e-marketplaces do differ between buyers and sellers. This suggests a need to further investigate the buyer–seller difference in online transactions. Practical implications: Intermediaries need to focus on different types of trust-building mechanisms when attracting buyers and sellers to make transactions in the e-marketplace. Originality/value: C2C e-marketplaces cannot survive without participation from both buyers and sellers. Most prior research is conducted from the buyers’ perspective. This research sets a starting point for future research to further explore the differences between buyers’ and sellers’ behavior in C2C e-commerce environments.

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Industrial Management and Data Systems

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