Perceived Effectiveness of Risk-Reduction Strategies in Online Second-Hand Marketplaces: The Pre-Purchase Decision Process

This research examines the perceived effectiveness of risk-reduction strategies (PERRS) and its role in the pre-purchase decision process in online consumer-to-consumer (C2C) second-hand marketplaces. This evaluation is important because the availability of risk-reduction mechanisms does not necessarily mean that consumers perceive them as effective in managing transaction-related uncertainty. Two complementary studies were conducted with US consumers recruited through Prolific. Study 1 (N = 407) examines a transaction- and consumer-related route to PERRS, focusing on trust, purchase intention, and relevant consumer conditions. The findings show that purchase intention mediates the relationship between trust and PERRS, with this process varying across consumer conditions. Study 2 (N = 318) examines a product-related route linking relatively lower- and higher-involvement product contexts to PERRS through risk aversion, with product category as a boundary condition. The results show that risk aversion mediates the relationship between product involvement and PERRS and that this indirect effect varies across product categories, emerging for accessories and electronics but not clothing. Overall, the research shifts attention from the availability or use of risk-reduction mechanisms to consumers’ evaluations of their effectiveness. By positioning PERRS within the pre-purchase process, the two studies identify complementary transaction/consumer- and product-related routes through which risk-reduction evaluations develop.