Live chat plays a significant role in online labor markets, which mitigates the information asymmetry caused by the highly customized nature of service products. This study examines the impacts of live chat on refund intention in online labor markets and how these impacts are moderated by business familiarity. We collect unique archived data from a leading online labor market in Asia and hypothesize that reply speed has a negative effect on refund intention while both politeness intensity and sentiment intensity have a U-shaped effect on refund intention. In addition, these effects are proposed to be weakened by business familiarity formed by previous transaction experience. The study not only offers theoretical contributions to the online labor market literature by providing empirical insights on the impact of live chat on refund intention but also yields managerial implications for service providers and platform operators.


Paper Number 1373; Track E-Business; Short Paper


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