Track: e-Business/e-Service/e-Commerce

Abstract

Indonesia has always been a lucrative market for e-marketplace and classified ads development as the country has both a large population of youth and stronger economic growth. However, e-marketplace and classified ads are still highly associated with fraudulent acts. According to the POLRI report from January to July 2019, there were 1.243 cases of fraudulent activities and this condition worsened the trust in using e-marketplace and classified ads. This condition also makes the perceived risk and negative review in using e-marketplace and classified ads to increase. The decrease in confidence also has an impact on price dispersion increasing perceived risk and ultimately makes the perceived value by the community to change. So, based on this phenomenon, this study aims to formulate the conceptual model of the relationship between initial trust, perceived risk, price dispersion, perceived value and e- WOM toward the intensity of transaction. This study uses several models from previous authors as a reference to build a conceptual model. Thus, this study proposes a new conceptual model consisting of eight variables for e- marketplaces and classified ads. The findings of this study are to build a conceptual model to determine the relationship between variables for further research.