Perceived Utility in Online Auctions: A Joint-Effect of Vendor, Product and Pricing

Perceived utility is among the many factors that influence a buyer’s purchase intention in online auctions. In this study, the authors examined a model for the predictors of perceived utility and perceived product quality. The results show that the single most dominant predictor for perceived product quality is the perceived seller quality, followed by perceived price gap. Perceived price gap outweighs perceived product quality and seller quality as the most influential predictor for perceived utility. The role that product information sufficiency plays is not significant enough to impact perceived product quality. Nor does it have an effect on the final perceived utility. Several managerial implications are discussed. Perceived Utility in Online Auctions: A Joint-Effect of Vendor, Product and Pricing