What Signal Are You Sending? How Website

An electronic commerce marketing channel is fully mediated by information technology, stripping away much 17 of a product’s physical informational cues, and creating information asymmetries (i.e., limited information). 18 These asymmetries may impede consumers’ ability to effectively assess certain types of products, thus creating 19 challenges for online sellers. Signaling theory provides a framework for understanding how extrinsic cues— 20 signals—can be used by sellers to convey product quality information to consumers, reducing uncertainty and 21 facilitating a purchase or exchange. This research proposes a model to investigate website quality as a 22 potential signal of product quality and consider the moderating effects of product information asymmetries and 23 signal credibility. Three experiments are reported that examine the efficacy of signaling theory as a basis for 24 predicting online consumer behavior with an experience good. The results indicate that website quality influ25 ences consumers’ perceptions of product quality, which subsequently affects online purchase intentions. 26 Additionally, website quality was found to have a greater influence on perceived product quality when 27 consumers had higher information asymmetries. Likewise, signal credibility was found to strengthen the 28 relationship between website quality and product quality perceptions for a high quality website. Implications 29 for future research and website design are examined. 30 31