Ties that set you free social network-based innovations for C2C marketplaces

Abstract

Generation Z growing up and gaining more important roles as a consumer group, the unfolding global economic crisis and the increasing need for sustainability create a vacuum that could be filled by the reformation of C2C re-commerce marketplaces. This study examines how trust can be translated to the language of technology, e-commerce and user experience to increase the efficiency and profitability of C2C marketplaces. Secondary research and a threefold primary research were conducted to analyse how social ties between buyers and sellers influence preferred pricing and payment methods, likelihood of purchase, perceived risks and negotiations. Social network theory, social exchange theory, the endowment effect, perceived risk theory and psychological aspects of social reputation and negotiations provide the theoretical base of the study. The market research supports that there is a market gap in Hungary for C2C marketplace innovations. The results of the primary research show that stronger social ties mean that buyers are more likely to accept the price set by the seller, while with strangers, they prefer participative pricing. In the case of first-degree connection, direct payment (e.g. through Revolut) is preferred, in contrast to the case of strangers, where paying through the platform is more appealing. Risks are perceived to be lower when there is any kind of prior social relationship between the parties, and the likelihood of purchase is higher. The study proposes that the pain of distrust towards C2C marketplaces should be defeated by the standardisation of purchasing processes and integrating social elements.

Date of Award	23 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Miguel Rita (Supervisor)