Understanding the Emerging C2C Electronic Market in China: An Experience-Seeking Social Marketplace
نویسندگان
چکیده
China’s consumer-to-consumer (C2C) electronic market has been growing very rapidly. The largest Chinese online auction company. Eachnet. was purchased by eBay but faced tough competition from a new Chinese online auction company, Taobao. Now Taobao’s market share is twice as large as eBay’s. Why has eBay quickly lost its market share to the newly launched Taobao? What is the nature of this market? On the premise of the customer relationship management (CRM) process model, we conduct a case study to describe the whole picture of this market and to find out what strategies are most suitable to the current Chinese market and likely to lead to success. Our study shows that the C2C market in China is a young and experience-seeking market whose customers are price-sensitive, willing to try new services and new vendors, and comfortable with switching. The market is also a social environment where customers’ loyalty to a vendor can be built more easily by the vendor’s social relation management service than by the transaction service. The findings suggest that vendors in China’s C2C market should not only provide a functional service to acquire customers, but also foster the development of social marketing to retain customer loyalty. The social marketing design should be tailored to Chinese culture.
منابع مشابه
The Nature of the Emerging C2c Electronic Market in China: a Case Study from Social Network Theory and Crm Perspectives
China’s C2C electronic market has been growing very rapidly. Eachnet, which had been the largest Chinese online auction company, after merging with eBay, quickly lost its market share to a newly-launched Chinese company, Taobao. What is the nature of the market? What strategy is the most suitable to the current Chinese market and likely to lead to success? Based on the CRM process model, we con...
متن کاملDeterminants of Customer Loyalty in China C2C E-Commerce: From a Social Network Perspective
China’s C2C electronic market has been growing very rapidly. The largest Chinese online auction company, Eachnet, was purchased by eBay but faced tough competition from another Chinese company, Taobao. Taobao’s market share is now twice as large as eBay’s. Why has eBay quickly lost its market share to newly-launched Taobao? This paper developed and tested a theoretical model that explains the e...
متن کاملManaging Uncertainty: An Exploratory Study of Information Seeking Strategies of Online Consumers
Uncertainty has been widely recognized as a primary barrier in online C2C transaction processes. This research explores the effectiveness of strategies typically employed to reduce uncertainty in C2C electronic commerce based upon the uncertainty reduction theory and Kelley’s attribution theory. We inspect the effects of the information from four information seeking strategies on online consume...
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 کاملBuilding Consumer-to-Consumer Trust in e-Finance Marketplaces
Online market exchanges are usually characterized by uncertainty and risks. Establishing trust and providing trust-building mechanisms are thus crucial for marketplace providers to reduce uncertainty and risks of online transactions. Business models that focus on consumer-to-consumer (C2C) transactions are growing and prospering. For these business models, establishing trust between consumers i...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
- Electronic Markets
دوره 17 شماره
صفحات -
تاریخ انتشار 2007