Follow the leader: price change timing in Internet‐based selling

Kauffman, Robert J.; Wood, Charles

doi:10.1002/mde.1375

Cited by 28 publications

(15 citation statements)

References 51 publications

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“…We also found that searching (both self-reported and observed in our experiment) leads to higher levels of institutional-based trust and experience. In addition, although other research contends that established institutions, like eBay and PayPal, should command higher bid levels (Brynjolfsson & Smith, 2000;Kauffman & Wood, 2007), our findings are consistent with the results of Stewart (2003) and Kim (2008). They found that the institutional-based trust which certain individuals develop for one online institution can be transferrable to similar institutions.…”

Section: Figure 3 -Structural Equation Modelsupporting

confidence: 90%

Trust and experience in online auctions

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Wood³

et al. 2018

Journal of Organizational Computing and Electronic Commerce

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This paper aims to shed light on the complexities and difficulties in predicting the effects of trust and the experience of online auction participants on bid levels in online auctions. To provide some insights into learning by bidders, a field study was conducted first to examine auction and bidder characteristics from eBay auctions of rare coins. We proposed that such learning is partly because of institutional-based trust. Data were then gathered from 453 participants in an online experiment and survey, and a structural equation model was used to analyze the results. This paper reveals that experience has a nonmonotonic effect on the levels of online auction bids. Contrary to previous research on traditional auctions, as online auction bidders gain more experience, their level of institutional-based trust increases and leads to higher bid levels. Data also show that both a bidder's selling and bidding experiences increase bid levels, with the selling experience having a somewhat stronger effect. This paper offers an in-depth study that examines the effects of experience and learning and bid levels in online auctions. We postulate this learning is because of institutional-based trust. Although personal trust in sellers has received a significant amount of research attention, this paper addresses an important gap in the literature by focusing on institutional-based trust.

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Section: Figure 3 -Structural Equation Modelsupporting

confidence: 90%

Trust and experience in online auctions

Spaid

Wood³

et al. 2018

Journal of Organizational Computing and Electronic Commerce

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“…In theory, as Reibstein [2002] notes consumers must be in a position to access and more importantly utilise all the relevant information, with respect to a particular purchase decision, if perfect markets are to evolve. However, in practice consumers don't have the time, confidence, desire, and most importantly knowledge, to always make optimal decisions [Kauffman and Wood 2007], as too often, consumers are now simply 'spoilt for choice' [Earl & Mandeville, 2009]. Moreover, it can be argued that the early predictors of perfect competition failed to take into account the importance of 'first mover advantage', and the very significant 'fixed costs' associated with setting up a successful on-line business [Earl & Mandeville, 2009].…”

Section: The Transformation Of the Market-placementioning

confidence: 99%

Internet retailing: the past, the present and the future

Doherty

Ellis‐Chadwick

2010

International Journal of Retail &Amp; Distribution Management

138

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Purpose -The primary aim of this paper is to critically review the literature that explicitly addresses the adoption, application and impact of Internet technologies, by retailers, for the promotion and sale of merchanidise. In particular, this study seeks to: 1) present a holistic and critical review of the early predictions, with regard to the uptake and impact of Internet retailing; 2) critically reappraise these claims in light of current trends in Internet retailing; and 3) explore where e-tailing may be heading in the coming years.Design / Methodology /Approach -The study adopts an extensive and critical review of the literature, with regard to the adoption, uptake and impact of Internet retailing, as published in the academic literature over the past twenty years.Findings -In hindsight it can be seen that many of the original predictions, made at the dawn of the Internet era, have not become a reality: retailers aren't cannibalising their own custom, virtual merchants aren't dominating the market-place, and the high-street hasn't, as yet, been put out of business. By contrast other predications have come to pass: electronic intermediaries are playing an increasingly important role, 'one-to-one' marketing has become a reality, prices are more competitive, and perhaps most importantly the consumer has become more powerful.Research limitations / implications -Providing a brief review of the past, present and future of online retailing is an extremely ambitious undertaking, especially given the vast amount of literature that has been published in this area. In attempting to provide an overall impression of the broad themes, and most important findings, to emerge from this important body of literature, it is inevitable that we will have either missed or underplayed many important pieces of work. Consequently, there is a need for follow-up studies that aim to provide deeper and richer reviews of more narrowly defined elements of this vast landscape.Originality / value -This study presents one of the first and most thorough reappraisals of the initial literature with regard to the likely development, implications and impact of Internet retailing. Moreover the paper seeks to break new ground by attempting to use the current literature to help predict future directions and trends for on-line shopping.

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“…Thanks to the Internet sellers can adopt new strategies such as rapid reactions to promotions, price tracking, price signalling etc. (Kauffman and Wood, 2007). As in the analysis of CPI data, we cannot exclude that our results are affected by the behaviour of new firms entering and/or seeking to foster their market position.…”

Section: Introductionmentioning

confidence: 99%

Price Stickiness in the US and Europe Revisited: Evidence from Internet Prices*

Lünnemann

Wintr

2011

Oxford Bulletin of Economics and Statistics

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This paper compares price stickiness on the Internet and in traditional brick-and-mortar stores and examines differences across five countries: France, Germany, Italy, the UK and the US. Contrary to conventional retail prices, we find that Internet prices change less often in the US than in EU countries. However, this does not hold for all product categories. Second, prices on the Internet are not necessarily more flexible than prices in brick-andmortar stores. Third, our dataset reveals substantial heterogeneity in the frequency of price changes across Internet shops. Finally, panel logit estimates suggest that the likelihood of observing a price change is a function of both state-dependent and time-dependent factors.

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Follow the leader: price change timing in Internet‐based selling

Cited by 28 publications

References 51 publications

Trust and experience in online auctions

Trust and experience in online auctions

Internet retailing: the past, the present and the future

Price Stickiness in the US and Europe Revisited: Evidence from Internet Prices*

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