A Model of the Factors Influencing Consumer Usage of B2C/C2C E-marketplaces

Abstract

This research aimed to determine the key factors affecting the adoption and usage of B2C and C2C e-marketplace in Saudi Arabia; drawing upon the theories of Hofstede’s cultural dimensions for individuals and the UTAUT2 model. Also, the factors namely Brand Awareness, Security, Word of Mouth, and Value-added services have been included in this study. These factors focus on the depth of e-marketplace and how they interact to influence e-marketplace adoption as well as its usage. This study used a quantitative research approach. A survey was used to collect data from active Internet e-marketplace users. The analysis was carried out using Structural Equation Modelling (SEM). This research adds to the e-marketplace body of knowledge through a theoretical framework which will also show adoption and usage behaviour of consumers in Saudi Arabia. As few studies have investigated this topic, the current study provides a valuable contribution in the field. The findings of this study differs from previous research. Surprisingly, the results show no significant relationship exists between security, word of mouth, value-added services, effort expectancy, facilitating conditions, hedonic motivation, power distance, individualism versus collectivism and e-marketplace use in Saudi Arabia. On the other hand, brand awareness, habit, Masculinity versus femininity, price value, social influence and performance expectancy influences e-marketplace usage. The findings of this study lead to guidelines that will facilitate government as well as business organisations to understand how they can promote and enhance the level of e-marketplace adoption and its usage among potential consumers particularly in developing countries such as KSA. Moreover, it assists in clearing the way for companies to develop their online presence and satisfy their customers’ demand and also, assist the government in developing the e-marketplace sector.