A Study on the Effects of Product Types and Culture on the Level of Use of BIN Auctions by Sellers

Unlike most previous studies on Buy-It-Now (BIN) auctions, this study investigates factors that affect the level of use of BIN auctions by sellers. This study proposes a conceptual model in which product types and culture are two important factors affecting sellers’ decisions on the level of use of BIN auctions. The empirical investigation exhibits that sellers of homogeneous products are more likely to use BIN auctions than sellers of heterogeneous and antique-like products do. The result also shows that the level of use of BIN auctions can be explained by the Hofstede’s Culture Dimensions. While power distance brings a positive impact, uncertainty avoidance and individualism bring negative impacts on the level of use of BIN auctions by sellers. The results provide valuable insights for sellers and Internet marketplace operators to refine their business strategies and their plans for expanding their businesses to overseas markets.