The role of trust and sustainability on customer-to-customer purchase behaviour of second-hand goods on Facebook Marketplace

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Date

2024

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University of the Witwatersrand, Johannesburg

Abstract

Customer-to-customer (C2C) social commerce (S-Commerce) is a growing trend where social networks such as Facebook are evolving beyond their traditional roles to facilitate online transactions, particularly for second-hand goods. A new phenomenon has been observed in S- Commerce which consists of the purchase of second-hand goods. However, the widespread adoption of C2C S-Commerce has been hindered by a lack of trust in the platform used to sell goods and in individual sellers. Several studies have investigated this phenomenon to uncover the antecedents of trust and purchase behaviour on S-Commerce platforms. Despite the growing interest in this field, prior research has overlooked certain dimensions of trust, considering it in most cases to be a single dimension. Therefore, there is a need to investigate trust through a multidimensional lens to understand how different dimensions of trust influence C2C purchase behaviour. Additionally, the role of sustainability of the purchase behaviour of second-hand goods on S-Commerce, specifically the Facebook marketplace has been less investigated. To address these gaps, the current study aims to investigate the role of trust and sustainability on customer-to-customer purchase behaviour of second-hand goods on the Facebook marketplace. To achieve this aim, this study proposes a model that integrates signalling, social network, and social presence theories, trust in both the seller and S-Commerce platform, and sustainable practices of consumers. Additionally, this study investigates the moderation effect of sustainability on the relationship between trust in the seller (TS), trust in the social commerce platform (TSCP), and purchase behaviour (PB), as well as the moderation of the type of goods sought in S-Commerce platform. The current study adopted a positivist philosophy using a quantitative method. A survey was conducted using online and paper-based questionnaires administered to 404 South African Facebook Marketplace users aged between s18 and 65. Data was collected through purposive sampling and analysed using structural equation modelling (SEM), multigroup and moderation analyses in the International Business Machines (IBM) Statistical Package for the Social Sciences (SPSS) and Analysis of Moment Structures (AMOS) version 29, providing a rigorous test of the proposed model. vii The findings of this study revealed interesting results that enrich the understanding of S- Commerce marketplace in South Africa. Firstly, the results revealed that trust in the seller and the sustainable practices of consumers are the two main direct antecedents of the purchase behaviour of second-hand goods on Facebook Marketplace in South Africa. Secondly, social media instrumental relationships, the social presence of interaction with the seller, and trust in S-Commerce platform influence trust in the seller. Thirdly, the social presence of interaction with the seller and the social presence of others are the main antecedents of trust in social commerce platforms. Trust in S-Commerce platform does not directly influence purchase behaviour on Facebook Marketplace. However, it does extend this trust to the seller, who influences the purchase behaviour of Facebook Marketplace buyers. Furthermore, the results of the moderation analysis reveal that consumers’ sustainable practices moderate the relationship between trust in the seller and the purchase behaviour of second- hand goods on Facebook Marketplace. Lastly, the results of the multigroup analysis indicated that the type of goods sought on S-Commerce platform influences the purchase behaviour of second-hand goods. An interesting insight observed was that consumers on Facebook Marketplace show a preference for durable goods over non-durable goods. They also emphasise the importance of the social presence of the web in building trust in the purchase process. These results contribute to the existing knowledge theoretically and practically, enriching the understanding of S-Commerce environment and the factors that influence the purchase behaviour of second-hand goods on Facebook Marketplace. This study provides significant theoretical contributions by integrating the signalling theory, the social network theory, and the social presence theory to examine their influence on purchase behaviour of second-hand goods on Facebook Marketplace. It further contributes to the literature by exploring trust as a multidimensional concept, examining trust in the seller and trust in the social commerce platform. Additionally, the current study investigates the actual purchase behaviour rather than the intentions, thereby shedding light on the customer purchase behaviour on S-commerce platforms such as Facebook Marketplace. Furthermore, this study reveals the moderation effect of sustainable practices on the relationships between trust in the seller and purchase behaviour, and the moderation of the type of second-hand goods on social commerce platforms. viii Moreover, this study provides several practical implications that can be found in section 6.3.2, including insights for sellers to enhance trust through communication and verification processes. It also provides recommendations for promoting sustainable practices among Facebook Marketplace users to stimulate the circular economy and contribute to environmental conservation efforts. Finally, the current study recommends that Facebook Marketplace administrators implement practical measures to enhance trust in the platform such as identity verification and seller ratings. The originality of this study lies in its unique integration of ST, SNT, and SPT to examine their combined impact on trust, an aspect not explored in previous research. It stands among a limited number of studies that have delved into actual purchase behaviour on S-Commerce, as opposed to focusing solely on purchase intentions. This research further contributes to the academic discourse by shedding light on the influence of sustainability on the purchase behaviour of second-hand goods on S-Commerce platforms. The study's originality is further underscored by its examination of the moderating effects of the types of products sought and the sustainable practices of consumers. This comprehensive approach provides a novel perspective in the field of S-Commerce research.

Description

A research report submitted in partial fulfillment of the requirements for the degree of Master of MCom in Marketing Management to the Faculty of Commerce, Law, and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2024

Keywords

Customer-to-customer (C2C), social commerce (s-commerce), sustainability, trust, signalling theory, social network theory, social presence theory, second-hand goods, consumer durables goods, consumer non-durable goods, sustainable practices, purchase intention

Citation

Buasha, Ngandu Robert . (2024). The role of trust and sustainability on customer-to-customer purchase behaviour of second-hand goods on Facebook Marketplace [Master’s dissertation, University of the Witwatersrand, Johannesburg].WireDSpace.

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