What Signal Are You Sending? How Website Quality Influences Perceptions of Product Quality and Purchase Intentions1

An electronic commerce marketing channel is fully mediated by information technology, stripping away much of a product’s physical informational cues, and creating information asymmetries (i.e., limited information). These asymmetries may impede consumers’ ability to effectively assess certain types of products, thus creating challenges for online sellers. Signaling theory provides a framework for understanding how extrinsic cues— signals—can be used by sellers to convey product quality information to consumers, reducing uncertainty and facilitating a purchase or exchange. This research proposes a model to investigate website quality as a potential signal of product quality and consider the moderating effects…