12. Conclusion
This study advances the theoretical and empirical understanding of the role of website signals in e-commerce. In this context, the characterization of signals as internal and external sheds light on the determinants of buyer purchase intentions when dealing with unknown online sellers. At the theoretical level, we develop a model that integrates trust and deception theories with economic theory of signaling. The core concept underlying this model is the role of signals as mitigators of information asymmetry in online transactions. In order to play a significant role in the reduction of this asymmetry, signals have to be believable by consumers. From the seller's perspective, signals differ in terms of their production: signals can either be created internally or obtained externally. The resulting model, combining external and internal signals, was tested empirically with respect to perceived seller and product quality, and the perceptions of deception, trust and purchase intentions. The results suggest that both external and internal signals have a significant effect on buyer perceptions of seller and product quality. While both types of signals are important, buyers find external signals more salient than internal ones. These results have implications for digital business strategies of online sellers who use signaling mechanisms to convey their quality.
