Buyer Intention to Use Internet-Enabled Reverse Auctions: The Role of Asset Specificity, Product Specialization, and Non-Contractibility

Mithas, Sunil; Jones, Joni L.; Mitchell, Will

doi:10.2307/25148868

Cited by 76 publications

(47 citation statements)

References 84 publications

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“…Information systems researchers have actively been seeking to understand how to encourage participation in online auctions (e.g., Choudhury et al 1998, Mithas et al 2008. Further, by studying how sellers can selectively allocate products to the e-channel, our research contributes to work that seeks to understand how changes to auction design influence seller and buyer surplus (e.g., Jap 2003Jap , 2007.…”

Section: Business-to-business Online Auctionsmentioning

confidence: 99%

Ushering Buyers into Electronic Channels: An Empirical Analysis

Langer¹,

Forman

Kekre

et al. 2011

SSRN Journal

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D espite many success stories, B2B e-commerce penetration remains low. Many firms introduce electronic channels in addition to their traditional sales channels but find that buyer usage of the e-channel over time does not keep up with initial expectations. Firms must understand the underlying factors that drive channel usage and how these factors change over time and across buyers. Using panel data pertaining to the purchase histories of 683 buyers over a 43-month period, we estimate a dynamic discrete choice model in a B2B setting that (i) recognizes how price, channel inertia, and inventory change over time; (ii) allows buyers to dynamically trade off these factors when making e-channel adoption decisions; and (iii) takes into account buyer heterogeneity. We find that channel usage is both heterogeneous and dynamic across buyers. Our findings reveal the dynamic tradeoff between channel inertia and the adverse price effect, which interact in opposing directions as the e-channel grows more popular over time: price increases resulting from more bids deter buyers, whereas channel inertia built from sampling experience helps retain repeat buyers for the new channel. Second, we find that the buyers' size and diversity influence purchase decisions, and the e-channel appears more attractive to small and/or diversified buyers. Based on our analysis, we postulate that the seller's allocation decisions of products across channels, if not aligned with buyer behavior, can alienate some buyers. Based on the parameter estimates from the buyer response model, we propose an improved channel allocation that enables firms to selectively attract more buyers to the e-channel and improve revenues. Channel acceptance increases as a result of smart allocation when firms understand and account for individual buyers' channel usage behavior.

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Section: Business-to-business Online Auctionsmentioning

confidence: 99%

Ushering Buyers into Electronic Channels: An Empirical Analysis

Langer¹,

Forman

Kekre

et al. 2011

SSRN Journal

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“…Research has found that product specialization has explanatory power for reverse auctions. However, research has also found that non-contractible elements (including non-contractibility quality, supplier technological investments, information exchange, information diffusion, responsiveness, trust, and flexibility, of inter-organizational relationships) also have great explanatory power for reverse auctions (Ba, Whinston, & Zhang, 2003;Bapna, Jank, & Shmueli, 2008;Ho, Bodoff, & Tam, 2011;Li, Hess, & Valacich, 2006Lim, Sia, Lee, & Benbasat, 2006;Mithas, Jones, & Mitchell, 2008;Webster & Martocchio, 1992). Research has also found implementing information feedback to an auction system to increase the amount of successful trading on the auction websites because it helps build trust, which is critical in electronic auctions (Adomavicius, Curley, Gupta, & Sanyal, 2013;Adomavicius & Gupta, 2005;Ba et al, 2003;Bapna et al, 2003).…”

Section: Electronic Auctions and Bidding Behaviormentioning

confidence: 99%

The Happiness Premium: The Impact of Emotion on Individuals’ Willingness to Pay in Online Auctions

Yuan

Dennis

2016

THCI

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Abstract:Much research across various disciplines has studied individuals' bidding behavior in online auctions. Emotion is an important factor affecting individual behavior, but we know little about its effects in online auctions. We conducted a lab experiment to investigate the impact of positive emotion on individuals' willingness to pay in online auctions. We found that individuals with positive emotions bid more than those with neutral emotions; that is, they paid a "happiness premium" of about 10 percent. The effect size was medium (Cohen's d = 0.51). This study contributes to electronic commerce literature by identifying emotion as an important factor affecting online auction behavior. The findings also provide guidance to auction website design: websites can increase bid amounts by inducing positive emotions in potential customers.

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“…As Tassabehji (2010) recently observed, "the study of e-auctions is still in the early stages and there remains a dearth of substantial empirical research and much more to uncover" [11]. Mithas et al, (2008) There has indeed been a dearth of academic research in the area of reverse auctions [12]. Much of the reason behind the relative paucity of research in the use of reverse auctions in the B2B (business to business) area is due to the limited availability of data, as much of it is proprietary in nature [13].…”

Section: The Growth Of Reverse Auctionsmentioning

confidence: 99%

Current Research On Reverse Auctions: Part I -Understanding The Nature Of Reverse Auctions And The Price And Process Savings Associated With Competitive Bidding

Wyld¹

2011

IJMVSC

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This article serves as the first part of a two-part series that will provide an overview of the reverse auction concept, building on the best research in the field of supply chain management. In this instalment, we examine the growth of reverse auctions in both private and public sector procurement. We then provide a differentiation between the more readily understood forward auction concept and the emerging practice of reverse auctioning. We then examine the two-sides of the reverse auction savings equation, looking at the "first order" savings to be derived from the use of competitive bidding to secure lower purchase prices, as well as the "second order" savings that can be achieved through making the procurement process more efficient.

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Buyer Intention to Use Internet-Enabled Reverse Auctions: The Role of Asset Specificity, Product Specialization, and Non-Contractibility

Abstract: Information technology enabled exchanges in electronic markets have significant implications for buyer-supplier rela-

Cited by 76 publications

References 84 publications

Ushering Buyers into Electronic Channels: An Empirical Analysis

Ushering Buyers into Electronic Channels: An Empirical Analysis

The Happiness Premium: The Impact of Emotion on Individuals’ Willingness to Pay in Online Auctions

Current Research On Reverse Auctions: Part I -Understanding The Nature Of Reverse Auctions And The Price And Process Savings Associated With Competitive Bidding

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