Thinking or Feeling the Risk in Online Auctions: The Effects of Priming Auction Outcomes and the Dual System on Risk Perception and Amount Bid

Yael Steinhart*, Michael A. Kamins, David Mazursky, Avraham Noy

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

The present research sheds new light on the antecedents and outcomes of bidders' perceived risk. It examines the role of the two-system model in the context of activating the potential to either win or lose an online auction. This study demonstrates that when a bidder's affective system is primed, concern about losing the item is greater and ultimately the bid amount is higher when the bidder expects to lose rather than win. Conversely, when the cognitive system is primed, the anticipated goals of winning the auction - rather than the fear of losing - drive the bidder's actions. In the latter case, the bidder pays a higher amount if the expectancy of winning is primed, as opposed to the expectancy of losing. A field study on eBay and two lab studies confirm this phenomenon.

Original languageEnglish
Pages (from-to)47-61
Number of pages15
JournalJournal of Interactive Marketing
Volume27
Issue number1
DOIs
StatePublished - Feb 2013
Externally publishedYes

Keywords

  • Online auctions
  • Perceived risk of losing
  • Two-system model

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