Strengthening the Online Auction Culture of the Philippines

Abstract

This paper examines global patterns in pre-identified attributes that contribute to the success or behavior of e-auctions in certain region-based websites associated with a recognized web brand in web-based bidding. It used 18 countries data on e-auction characteristics that focus on context, input, process, output and outcomes with the purpose as guidance to obtain and strengthen policybased recommendation in the review and accordance of the e-Commerce Act of 2000. 18 variables were used as multivariate inputs in a cluster analysis algorithm aimed to cluster countries in 18 x 18 similarity matrix utilizing a hierarchical clustering method. Information capturing variable descriptions was obtained from standard reports and a web-based observation in a definite period of time. Results revealed that buyer satisfaction varied strongly with high and low ranking countries in terms of Context (Network Readiness Index, Human Development Index and Level of Development), Input (Internet speed, Site Language, Trading Scope, Membership and Merchant type), Process (Checkout, Delivery and Payment methods), Output (Taxation, Buyer protection, Product Exchange Options and Merchandise Returns) and Outcome (Positive feedback score and Seller ratings). On the basis of the cluster analysis performed and validation of theoretical discovery, Policy allusions are given as recommendations to enhance, improve and consolidate the e-commerce Act of the Philippines to augment its contribution to national development.