In-depth Analysis of the Seller Reputation and Price Premium Relationship: a Comparison between Ebay Us and Taobao China
نویسندگان
چکیده
Seller reputation is recognized as an essential determinant in online C2C marketplaces, but its influence on price premium remains unknown. The majority of existing studies indicate that seller reputation is positively correlated with sales price (price premium) on eBay US, but not on Taobao China. Conversely, the strong correlation between seller reputation and sales volume found on Taobao (volume effect) seldom occurs on eBay US. Seller reputation thus seems having a positive impact on sales price on eBay US but a positive impact on sales volume on Taobao. To explain this interesting difference, we conducted an in-depth analysis using data retrieved from eBay US and Taobao China, grounded in the economic theory of market structure. The findings suggest that market structure, and specifically the number of sellers, moderates the relationship between seller reputation and sales performance. In a thin market, seller reputation is positively correlated with sales price, whereas in a thick market, the impact of seller reputation is reflected in sales volume.
منابع مشابه
The Determinants of Price in Internet Auctions of Used Cars
This study analyzes how auction, seller, and product factors influence the price premium in an eBay used car auction market. In auctions with at least one bid, the reputation of the seller, title status, and the time the auction ended influenced the price premium on the highest bid. For auctions that resulted in a sale, cars with clear title and dealers were able to secure significantly greater...
متن کاملOnline consumer-to-consumer market in China - A comparative study of Taobao and eBay
China’s fast-growing online consumer-to-consumer (C2C) market merits widespread research efforts. However, it has so far received little research attention. In this exploratory study, we chose Taobao – a leading online C2C auction company in China with more than 70% of market shares – as our research context. We focus on the general market structure of Taobao in terms of three factors: market d...
متن کاملReputation Price Premium in Online Auctions
Online auctions provide a unique opportunity to investigate the impact of seller reputation on the price paid for a good. This paper examined 62 "matched " auctions and found that an auction seller with a "reputation advantage " over another seller received a price premium of 8.3% on average, when the sellers offered nearly identical products. This paper discusses the properties of a "reputatio...
متن کاملPrice Determinants in Online Auctions: a Comparative Study of Ebay China and Us
This study applies online auction theories developed in the US to a different national and cultural context (i.e., China). After summarizing and comparing factors that drive price across online auctions in China and the US, this study is able to identify similarities and differences. Specifically, the starting bid and seller reputation have been shown to have similar effects on price, though th...
متن کاملThe Empirical Research about the Impact of Seller Reputation on C2C Online Trading: The Case of Taobao
With the improvement of China's Internet penetration and a shift in consumption consciousness, user scale and market size of online trading reached a new height, and C2C e-commerce has the most rapid development. As the seller and buyer of online transaction in a state of isolation in time and space, there is serious information asymmetry. So the reputation problems that exist in the online tra...
متن کامل