Brand experience, trust, and perceived risk in a second-hand online marketplace: the case of OLX group

Abstract

The widespread presence of the Internet in people’s lives has transformed the way consumers look for and buy a variety of goods and services. Shopping online is nowadays a popular way for a considerable number of individuals, giving rise to numerous forms of alternative shopping platforms. While in traditional e-commerce the seller is usually a known brand, another trend emerged in recent years, where the seller can be virtually everyone. In this context, buyers interact with little-known or even non-professional sellers. Since research on consumers’ behavior in second-handed products selling platforms is still scarce, this study examines how brand experience is influenced by perceived risk and brand trust in this context. The research uses a hypothetical-deductive approach. Based on a sample of 185 consumers of an online marketplace for second-hand goods, data were collected by a structured questionnaire. A regression analysis model was used to conduct statistical analysis, and SPSS was used to execute the analysis. Findings show that low perceived risk and high brand trust are associated with a better brand experience. The research, despite being restricted to one particular online marketplace for second-handed products, provides evidence to support the relevance of such platforms in lowering risk and enhancing brand trust, as a way to offer a pleasant brand experience.