The Impact of Location Information on Consumer Trust in Sellers: Focusing on the Geographic Proximity of Hyper-Local C2C Platform Users

This study explores the influence of location information, which can provide clues to the seller’sgeographic proximity and social class, in the context of peer-to-peer used item trading. We conductedthree studies, including a survey with a scenario and an eye-tracking technique. We provide empiricalevidence for the effects of sellers' geographic proximity and social class on consumers’ transaction intentions. Results reveal that the likelihood of a transaction decreased when the seller was distant (vs. close)from the consumer. This was because consumers perceived more trust and ease of transaction with nearbysellers than with faraway sellers. Additionally, the negative effect of geographic distance on transactionintention was attenuated when the seller’s location was associated with a higher (vs. lower) socialclass. The findings advance the understanding of consumer trust in a hyper-local C2C transactionplatform setting by incorporating the concept of geographic proximity, which has been overlooked inlocation-based service and C2C commerce research. These findings can be applied to managementinitiatives that aim to build or strengthen consumer trust.