DOES REPUTATION REALLY SIGNAL POTENTIAL SUCCESS IN ONLINE MARKETPLACES, OR IS IT ONLY A TRIGGER?

The implicit assumption in online marketplaces is that reputation, registered as the average of previous ratings, represents a market opinion of the trustworthiness of a business party and that this predicts eventual satisfaction with the expected outcome of the transaction. Extensive research indeed shows that such reputation does result in a higher probability of the seller being chosen in both services and goods markets, presumably because buyers believe that higher rating sellers have a better probability of delivering. Whether reputation actually predicts successful completion of the project and payment, rather than bid choice, however, is an unknown. This study answers that question. The data show that only when the rating value is above 5.5, which is rounded up in the market presentation to a caption of “above average”, is there a significant relationship between previous rating of the seller and eventual payment

Profile information and business outcomes of providers in electronic service marketplaces : an empirical investigation

Electronic service marketplaces (ESMs) have become major exchange platforms for the online outsourcing of different services &ndash; especially software development &ndash; to providers. Provider profiles on ESMs encompass extensive information regarding the activities and transactions of providers and they are a main source of information for customers. Such profile information significantly facilitates the relationship development between customers and providers. The existing literature has focused on the impact of the ratings of providers, but so far has not investigated the impact of the other available profile information. Building on the integrated information response model, this study investigates how information presented by providers as well as information provided by the ESM influences the business outcomes of the providers. Based on data collected from one of the major ESMs, we found that profile information indeed has a significant impact on the business outcomes of providers.<br /

Who Gets the Job? Synthesis of Literature Findings on Provider Success in Crowdsourcing Marketplaces

Background: Over the past decade, crowdsourcing marketplaces — online exchange platforms which facilitate commercial outsourcing of services — have witnessed a dramatic growth in the number of participants (service providers and customers) and the value of outsourced services. Deciding about the most appropriate provider is a key challenge for customers in crowdsourcing marketplaces because available information about providers may be incomplete and sometimes irrelevant for customer decisions. Ineffective information impedes many service providers to develop long-term relationships with customers, obtain projects on a regular basis and survive on crowdsourcing marketplaces. Previous studies have investigated the impact of a range of factors on customers’ choice decisions and providers’ success, given the important role of customer–provider relationship development for long-term success on crowdsourcing marketplaces. Method: This paper reviews the literature of crowdsourcing marketplaces with the aim of developing a comprehensive list of factors that influence customers’ choice decisions and providers’ success. Results: We found 31 conceptually distinct profile information components/factors that determine customers’ choices and providers’ business outcomes on crowdsourcing marketplaces. Conclusion: We classified these 31 factors into five major categories: 1) prior relationship between a customer and a provider or a customer’s invitation, 2) providers’ bidding behavior, 3) crowdsourcing marketplace or auction characteristics, 4) providers’ profile information, and 5) customer characteristics. The main factors in each category, associated considerations, related literature gaps and avenues for future research are discussed in detail