The neighborhood advantage: exploring the impact of negotiation costs on transaction satisfaction in local second-hand trading platforms

Abstract

Abstract This study aimed to investigate the determinants of transaction satisfaction and intention to use local second-hand marketplace platforms, focusing on the impact of negotiation costs and the moderating influence of users’ sense of their neighborhood. Building on transaction cost theory, we conceptualized negotiation costs as a multidimensional construct that encompassed economic, performance, time, and psychological costs. Our findings revealed that economic and time costs had a significant negative effect on transaction satisfaction, whereas performance and psychological costs did not exhibit such an impact. Furthermore, transaction satisfaction positively influenced users’ intention to use the platform, thereby mediating the relationship between negotiation costs and intention to use. Additionally, we found that users’ sense of their neighborhood enhanced transaction satisfaction and acted as a moderator, attenuating the negative impact of negotiation costs on satisfaction. For users with a high sense of my neighborhood, the negative impact of economic, performance, and time costs on transaction satisfaction was attenuated. These findings contribute to a deeper understanding of consumer behavior on local second-hand trading platforms and emphasize the importance of social cues in shaping transaction satisfaction and intention to use. The implications of our study offer valuable insights for second-hand platform operators.

Keywords

• Second-hand trading
• Local second-hand marketplace platform
• Transaction cost theory
• Negotiation cost
• Sense of my neighborhood
• Transaction satisfaction