Abstract

Online reputation systems are the means for reducing information asymmetry among the parties involved in an online transaction. When customers interact with a reputation system, they actually interact both with the system and with other customers who feed information into the system. Recognizing the dual nature of this interaction, this study examines the effects of perceived systems quality and perceived information quality on online customers’ intention to adopt the online reputation system. The research model proposes that perceptions will affect the intention to adopt through both psychological routes (i.e. trust in customers feeding the reputation system) and functional routes (perceived usefulness of the reputation system). An online survey was conducted. The results show that users’ perceived information quality and perceived system quality indeed significantly affect their intention to adopt the system, mainly through the functional route, but not significantly through the psychological route.

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