Skip to main content
SpringerLink
Log in

How do signaling and reputation function as critical clues to e-commerce platform governance? Evidence from Chinese rice transaction data

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

Abstract

Despite the rapid advancement of online shopping, the challenge of asymmetric information, particularly within the realm of agricultural products, poses a hurdle to sustaining consistent customer engagement in e-commerce. Drawing upon governance theory and the cue congruence effect, the research aims to construct a comprehensive theoretical framework that encompasses platforms, providers, and customers. The primary objective is to empirically examine how platform governance can facilitate the presentation of valuable systems through signaling, review clues, and their significant moderating effects. Through an analysis of transaction data from China’s online rice market, employing both two-stage least square and three-stage least square models, the study reveals that robust signals and reputation can lead to increased prices and sales for high-quality products. Additionally, the study identifies the presence of congruence: prices appear to amplify the influence of signaling and reviews, while congruence between video displays and signals yields a negative impact. This research offers theoretical insights for future study and practical recommendations for policymakers and e-commence participants.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Data availability

The datasets generated and analysed during the current study are not publicly available due the fact that they constitute an excerpt of research in progress but are available from the corresponding author on reasonable request.

References

  1. Alaimo, L. S., Fiore, M., & Galati, A. (2020). How the Covid-19 pandemic is changing online food shopping human behaviour in italy. Sustainability, 12(22), 22.

    Article  Google Scholar 

  2. Bai, G., & Velamuri, S. R. (2021). Contextualizing the sharing economy. Journal of Management Studies, 58(4), 977–1001. https://doi.org/10.1111/joms.12652

    Article  Google Scholar 

  3. Bauer, I., Parra-Moyano, J., Schmedders, K., & Schwabe, G. (2022). Multi-party certification on blockchain and its impact in the market for lemons. Journal of Management Information Systems, 39(2), 395–425. https://doi.org/10.1080/07421222.2022.2063555

    Article  Google Scholar 

  4. Boyacı, T., & Akçay, Y. (2018). Pricing when customers have limited attention. Management Science, 64(7), 2995–3014. https://doi.org/10.1287/mnsc.2017.2755

    Article  Google Scholar 

  5. Byun, K., Ma, M., Kim, K., & Kang, T. (2021). Buying a new product with inconsistent product reviews from multiple sources: The role of information diagnosticity and advertising. Journal of Interactive Marketing, 55, 81–103. https://doi.org/10.1016/j.intmar.2021.01.003

    Article  Google Scholar 

  6. Cennamo, C. (2021). Competing in digital markets: A platform-based perspective. Academy of Management Perspectives, 35(2), 265–291. https://doi.org/10.5465/amp.2016.0048

    Article  Google Scholar 

  7. Chakraborty, U. (2019). The impact of source credible online reviews on purchase intention. Journal of Research in Interactive Marketing, 13(2), 142–161. https://doi.org/10.1108/JRIM-06-2018-0080

    Article  Google Scholar 

  8. Chen, L., Yi, J., Li, S., & Tong, T. W. (2022). Platform governance design in platform ecosystems: Implications for complementors’ multihoming decision. Journal of Management, 48(3), 630–656. https://doi.org/10.1177/0149206320988337

    Article  CAS  Google Scholar 

  9. Colfer, L. J., & Baldwin, C. Y. (2016). The mirroring hypothesis: Theory, evidence, and exceptions. Industrial and Corporate Change, 25(5), 709–738. https://doi.org/10.1093/icc/dtw027

    Article  Google Scholar 

  10. Constantinides, P., Henfridsson, O., & Parker, G. G. (2018). Introduction—Platforms and infrastructures in the digital age. Information Systems Research, 29(2), 381–400. https://doi.org/10.1287/isre.2018.0794

    Article  Google Scholar 

  11. Dellarocas, C. (2003). The digitization of word of mouth: Promise and challenges of online feedback mechanisms. Management Science, 49(10), 1407–1424. https://doi.org/10.1287/mnsc.49.10.1407.17308

    Article  Google Scholar 

  12. Dong, X., Chang, Y., Liao, J., Hao, X., & Yu, X. (2023). The impact of virtual interaction on consumers’ pro-environmental behaviors: The mediating role of platform intimacy and love for nature. Information Technology & People. https://doi.org/10.1108/ITP-02-2021-0164

    Article  Google Scholar 

  13. Dong, X., Liu, H., Xi, N., Liao, J., & Yang, Z. (2023). Short video marketing: What, when, and how short-branded videos facilitate consumer engagement. Internet Research. https://doi.org/10.1108/INTR-02-2022-0121

    Article  Google Scholar 

  14. Dutta, S., & Bhowmick, S. (2009). Consumer responses to offline and online low price signals: The role of cognitive elaboration. Retailing Evolution Research, 62(6), 629–635. https://doi.org/10.1016/j.jbusres.2008.01.042

    Article  Google Scholar 

  15. Feng, J., Li, X., & Zhang, X. (2019). Online product reviews-triggered dynamic pricing: Theory and evidence. Information Systems Research, 30(4), 1107–1123. https://doi.org/10.1287/isre.2019.0852

    Article  Google Scholar 

  16. Frick, V., Gossen, M., Santarius, T., & Geiger, S. (2021). When your shop says #lessismore. Online communication interventions for clothing sufficiency. Journal of Environmental Psychology, 75, 101595. https://doi.org/10.1016/j.jenvp.2021.101595

    Article  Google Scholar 

  17. Giannakas, K., & Fulton, M. (2020). On the market for “Lemons”: Quality provision in markets with asymmetric information. Humanities and Social Sciences Communications, 7(1), 179. https://doi.org/10.1057/s41599-020-00658-w

    Article  Google Scholar 

  18. Gorwa, R. (2019). What is platform governance? Information, Communication & Society, 22(6), 854–871. https://doi.org/10.1080/1369118X.2019.1573914

    Article  Google Scholar 

  19. Gunasti, K., Kara, S., & Jr Ross, W. T. (2020). Effects of search, experience and credence attributes versus suggestive brand names on product evaluations. European Journal of Marketing. https://doi.org/10.1108/EJM-12-2017-0972

    Article  Google Scholar 

  20. Guo, J., Hao, H., Wang, M., & Liu, Z. (2022). An empirical study on consumers’ willingness to buy agricultural products online and its influencing factors. Journal of Cleaner Production, 336, 130403. https://doi.org/10.1016/j.jclepro.2022.130403

    Article  Google Scholar 

  21. Guo, T., Zhong, S., Wang, X., & Li, G. (2022). Does product display quantity increase purchase intention? The mediation of diminished pain of payment. Journal of Research in Interactive Marketing, 16(1), 101–117. https://doi.org/10.1108/JRIM-08-2020-0163

    Article  ADS  Google Scholar 

  22. Haldar, A., Sethi, N., Jena, P. K., & Padhan, P. C. (2023). Towards achieving sustainable development goal 7 in sub-Saharan Africa: Role of governance and renewable energy. Sustainable Development. https://doi.org/10.1002/sd.2521

    Article  Google Scholar 

  23. Heng, Y., Gao, Z., Jiang, Y., & Chen, X. (2018). Exploring hidden factors behind online food shopping from Amazon reviews: A topic mining approach. Journal of Retailing and Consumer Services, 42, 161–168. https://doi.org/10.1016/j.jretconser.2018.02.006

    Article  Google Scholar 

  24. Hou, H., & Shi, Y. (2021). Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination. Technovation, 100, 102193. https://doi.org/10.1016/j.technovation.2020.102193

    Article  Google Scholar 

  25. Islam, H. A., Farrell, M., Nair, A., & Zhang, J. (2023). Understanding transaction platform governance and conflicts: A configuration approach. Technological Forecasting and Social Change, 189, 122382. https://doi.org/10.1016/j.techfore.2023.122382

    Article  Google Scholar 

  26. Jiang, G., Zhang, M., Cai, X., & Feng, X. (2021). Collaborative governance in shared accommodation platform: Moderating role of perceived risk. Journal of Hospitality and Tourism Management, 49, 112–128. https://doi.org/10.1016/j.jhtm.2021.09.005

    Article  Google Scholar 

  27. Kamalul Affiffin, S., Mohan, T., & Goh, Y.-N. (2018). Influence of consumers’ perceived risk on consumers’ online purchase intention. Journal of Research in Interactive Marketing, 12(3), 309–327. https://doi.org/10.1108/JRIM-11-2017-0100

    Article  Google Scholar 

  28. Kao, K. C., Rao Hill, S., & Troshani, I. (2020). Effects of cue congruence and perceived cue authenticity in online group buying. Internet Research, 30(3), 945–970. https://doi.org/10.1108/INTR-11-2018-0477

    Article  Google Scholar 

  29. Kretschmer, T., Leiponen, A., Schilling, M., & Vasudeva, G. (2022). Platform ecosystems as meta-organizations: Implications for platform strategies. Strategic Management Journal, 43(3), 405–424. https://doi.org/10.1002/smj.3250

    Article  Google Scholar 

  30. Lancaster, K. J. (1976). A new approach to consumer theory. In U. H. Funke (Ed.), Mathematical models in marketing: A collection of abstracts (pp. 106–107). Springer. https://doi.org/10.1007/978-3-642-51565-1_34

    Chapter  Google Scholar 

  31. Lee, E. J., Bae, J., & Kim, K. H. (2020). The effect of environmental cues on the purchase intention of sustainable products. Journal of Business Research, 120, 425–433. https://doi.org/10.1016/j.jbusres.2019.10.048

    Article  Google Scholar 

  32. Li, K., Chen, Y., & Zhang, L. (2020). Exploring the influence of online reviews and motivating factors on sales: A meta-analytic study and the moderating role of product category. Journal of Retailing and Consumer Services, 55, 102107. https://doi.org/10.1016/j.jretconser.2020.102107

    Article  Google Scholar 

  33. Liu, C.-F., & Lin, C.-H. (2020). Online food shopping: A conceptual analysis for research propositions. Frontiers in Psychology, 11, 583768. https://doi.org/10.3389/fpsyg.2020.583768

    Article  PubMed  PubMed Central  Google Scholar 

  34. Liu, W., Long, S., Xie, D., Liang, Y., & Wang, J. (2021). How to govern the big data discriminatory pricing behavior in the platform service supply chain? An examination with a three-party evolutionary game model. International Journal of Production Economics, 231, 107910. https://doi.org/10.1016/j.ijpe.2020.107910

    Article  Google Scholar 

  35. Lu, B., & Chen, Z. (2021). Live streaming commerce and consumers’ purchase intention: An uncertainty reduction perspective. Information & Management, 58(7), 103509. https://doi.org/10.1016/j.im.2021.103509

    Article  Google Scholar 

  36. Luo, M., Guo, Z., & Wei, W. (2021). Study of the game model of e-commerce information sharing in an agricultural product supply chain based on fuzzy big data and LSGDM. Technological Forecasting and Social Change, 172, 121017. https://doi.org/10.1016/j.techfore.2021.121017

    Article  Google Scholar 

  37. Ma, X., Liu, Z., Meng, T., Florkowski, W. J., & Mu, Y. (2022). Impact of food sustainability labels on the price of rice in online sales. Foods. https://doi.org/10.3390/foods11233781

  38. Mavlanova, T., Benbunan-Fich, R., & Koufaris, M. (2012). Signaling theory and information asymmetry in online commerce. Information & Management, 49(5), 240–247. https://doi.org/10.1016/j.im.2012.05.004

    Article  Google Scholar 

  39. Miyazaki, A. D., Grewal, D., & Goodstein, R. C. (2005). The effect of multiple extrinsic cues on quality perceptions: A matter of consistency. Journal of Consumer Research, 32(1), 146–153. https://doi.org/10.1086/429606

    Article  Google Scholar 

  40. Ministry of Commerce of the People’s Republic of China. (2022). E-commerce in China. http://images.mofcom.gov.cn/dzsws/202211/20221118180137127.pdf. Accessed on August 3, 2023.

  41. Narwal, P., & Nayak, J. K. (2020). How consumers form product quality perceptions in absence of fixed posted prices: Interaction of product cues with seller reputation and third-party reviews. Journal of Retailing and Consumer Services, 52, 101924. https://doi.org/10.1016/j.jretconser.2019.101924

    Article  Google Scholar 

  42. National Bureau of Statistics of China. (2022). Total retail sales of consumer goods in 2021. http://www.stats.gov.cn/english/PressRelease/202201/t20220118_1826503.html. Accessed on October 1, 2022.

  43. Plantin, J.-C., Lagoze, C., Edwards, P. N., & Sandvig, C. (2018). Infrastructure studies meet platform studies in the age of Google and Facebook. New Media & Society, 20(1), 293–310. https://doi.org/10.1177/1461444816661553

    Article  Google Scholar 

  44. Purohit, D., & Srivastava, J. (2001). Effect of manufacturer reputation, retailer reputation, and product warranty on consumer judgments of product quality: A cue diagnosticity framework. Journal of Consumer Psychology, 10(3), 123–134. https://doi.org/10.1207/s15327663jcp1003_1

    Article  Google Scholar 

  45. Resnick, P., Zeckhauser, R., Swanson, J., & Lockwood, K. (2006). The value of reputation on eBay: A controlled experiment. Experimental Economics, 9(2), 79–101. https://doi.org/10.1007/s10683-006-4309-2

    Article  Google Scholar 

  46. Rietveld, J., Schilling, M. A., & Bellavitis, C. (2019). Platform strategy: Managing ecosystem value through selective promotion of complements. Organization Science, 30(6), 1232–1251. https://doi.org/10.1287/orsc.2019.1290

    Article  Google Scholar 

  47. Roggeveen, A. L., Grewal, D., Townsend, C., & Krishnan, R. (2015). The impact of dynamic presentation format on consumer preferences for hedonic products and services. Journal of Marketing, 79(6), 34–49. https://doi.org/10.1509/jm.13.0521

    Article  Google Scholar 

  48. Roselli, L., Carlucci, D., & De Gennaro, B. C. (2016). What is the value of extrinsic olive oil cues in emerging markets? Empirical evidence from the U.S. e-commerce retail market. Agribusiness, 32, 329–342. https://doi.org/10.1002/agr.21454

    Article  Google Scholar 

  49. Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, 82, 34–55.

    Article  Google Scholar 

  50. Saadatmand, F., Lindgren, R., & Schultze, U. (2019). Configurations of platform organizations: Implications for complementor engagement. The Digital Transformation of Innovation and Entrepreneurship, 48(8), 103770. https://doi.org/10.1016/j.respol.2019.03.015

    Article  Google Scholar 

  51. Shapiro, C. (1983). Premiums for high quality products as returns to reputations. The Quarterly Journal of Economics, 98(4), 659–679. https://doi.org/10.2307/1881782

    Article  Google Scholar 

  52. Sohn, J. W., & Kim, J. K. (2020). Factors that influence purchase intentions in social commerce. Technology in Society, 63, 101365. https://doi.org/10.1016/j.techsoc.2020.101365

    Article  Google Scholar 

  53. Song, T., Huang, J., Tan, Y., & Yu, Y. (2019). Using user- and marketer-generated content for box office revenue prediction: Differences between microblogging and third-party platforms. Information Systems Research, 30(1), 191–203. https://doi.org/10.1287/isre.2018.0797

    Article  Google Scholar 

  54. Sousa, R., Horta, C., Ribeiro, R., & Rabinovich, E. (2020). How to serve online consumers in rural markets: Evidence-based recommendations. Business Horizons, 63(3), 351–362. https://doi.org/10.1016/j.bushor.2020.01.007

    Article  Google Scholar 

  55. Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

    Article  Google Scholar 

  56. Sreen, N., Purbey, S., & Sadarangani, P. (2018). Impact of culture, behavior and gender on green purchase intention. Journal of Retailing and Consumer Services, 41, 177–189. https://doi.org/10.1016/j.jretconser.2017.12.002

    Article  Google Scholar 

  57. Tadelis, S. (2016). Reputation and feedback systems in online platform markets. Annual Review of Economics, 8(1), 321–340. https://doi.org/10.1146/annurev-economics-080315-015325

    Article  Google Scholar 

  58. Tofighi, M., Grohmann, B., & Bodur, H. O. (2020). Ethical attribute and brand concept congruity enhances brand evaluations. European Journal of Marketing, 54(1), 79–108. https://doi.org/10.1108/EJM-02-2018-0104

    Article  Google Scholar 

  59. Tokar, T., Jensen, R., & Williams, B. D. (2021). A guide to the seen costs and unseen benefits of e-commerce. Business Horizons, 64(3), 323–332. https://doi.org/10.1016/j.bushor.2021.01.002

    Article  Google Scholar 

  60. Tonsor, G. T., & Wolf, C. A. (2012). Effect of video information on consumers: Milk production attributes. American Journal of Agricultural Economics, 94(2), 503–508.

    Article  Google Scholar 

  61. Venkatesh, V., Speier-Pero, C., & Schuetz, S. (2022). Why do people shop online? A comprehensive framework of consumers’ online shopping intentions and behaviors. Information Technology & People, 35(5), 1590–1620. https://doi.org/10.1108/ITP-12-2020-0867

    Article  Google Scholar 

  62. Wang, J., Cai, S., Xie, Q., & Chen, L. (2022). The influence of community engagement on seller opportunistic behaviors in e-commerce platform. Electronic Commerce Research, 22(4), 1377–1405. https://doi.org/10.1007/s10660-021-09469-w

    Article  Google Scholar 

  63. Wang, S., Ma, S., & Wang, Y. (2021). The role of platform governance in customer risk perception in the context of peer-to-peer platforms. Information Technology for Development, 27(4), 760–778.

    Article  CAS  Google Scholar 

  64. Wang, YQu., & Tan, B. (2018). How do assurance mechanisms interact in online marketplaces? A signaling perspective. IEEE Transactions on Engineering Management, 65(2), 239–251. https://doi.org/10.1109/TEM.2017.2786275

    Article  Google Scholar 

  65. Wu, I.-L., Chiu, M.-L., & Chen, K.-W. (2020). Defining the determinants of online impulse buying through a shopping process of integrating perceived risk, expectation-confirmation model, and flow theory issues. International Journal of Information Management, 52, 102099. https://doi.org/10.1016/j.ijinfomgt.2020.102099

    Article  Google Scholar 

  66. Xu, C., Zheng, X., & Yang, F. (2023). Examining the effects of negative emotions on review helpfulness: The moderating role of product price. Computers in Human Behavior, 139, 107501. https://doi.org/10.1016/j.chb.2022.107501

    Article  Google Scholar 

  67. Yang, Z., Cao, X., Wang, F., & Lu, C. (2022). Fortune or prestige? The effects of content price on sales and customer satisfaction. Journal of Business Research, 146, 426–435. https://doi.org/10.1016/j.jbusres.2022.03.075

    Article  Google Scholar 

  68. Yoo, D. K., Roh, J. J., Cho, S., & Yang, M. M. (2022). Coopetition in a platform ecosystem: From the complementors’ perspective. Electronic Commerce Research. https://doi.org/10.1007/s10660-022-09565-5

    Article  Google Scholar 

  69. Zhang, M., Zhang, Y., Zhao, L., & Li, X. (2020). What drives online course sales? Signaling effects of user-generated information in the paid knowledge market. Journal of Business Research, 118, 389–397. https://doi.org/10.1016/j.jbusres.2020.07.008

    Article  Google Scholar 

  70. Zhao, X., Deng, S., & Zhou, Y. (2017). The impact of reference effects on online purchase intention of agricultural products. Internet Research, 27(2), 233–255. https://doi.org/10.1108/IntR-03-2016-0082

    Article  Google Scholar 

  71. Zheng, L. (2021). The classification of online consumer reviews: A systematic literature review and integrative framework. Journal of Business Research, 135, 226–251. https://doi.org/10.1016/j.jbusres.2021.06.038

    Article  Google Scholar 

  72. Zheng, M., Tang, D., Chen, J., Zheng, Q., & Xu, A. (2022). How different advertising appeals (green vs. non-green) impact consumers’ willingness to pay a premium for green agricultural products. Frontiers in Psychology, 13, 991525. https://doi.org/10.3389/fpsyg.2022.991525

    Article  PubMed  PubMed Central  Google Scholar 

Download references

Acknowledgements

The authors sincerely acknowledge the support from the Special Research Projects for Doctoral Talents, Nanjing University of Finance and Economics (BSZX2022-02) and the Postgraduate Research & Practice Innovation Program of Jiangsu Province (KYCX22_1682).

Author information

Authors and Affiliations

  1. Institute of Food and Strategic Reserves, Nanjing University of Finance and Economics, No. 3, Wenyuan Road, Qixia District, Nanjing, 210023, Jiangsu, China

    Xintong Liang, Guangsi Li, Junkai Ma & Gaoyang Jiang

Authors
  1. Xintong Liang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Guangsi Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Junkai Ma
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Gaoyang Jiang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Xintong Liang.

Ethics declarations

Conflict of interest

The authors declare that the research is conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Liang, X., Li, G., Ma, J. et al. How do signaling and reputation function as critical clues to e-commerce platform governance? Evidence from Chinese rice transaction data. Electron Commer Res (2024). https://doi.org/10.1007/s10660-024-09816-7

Download citation

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s10660-024-09816-7

Keywords

Search

Navigation