Information effect in Social Commerce: A case of TicketMonster

Social Commerce sites are in vogue enough to be recognized as a new trend in online shopping arena. Social Commerce can be defined as the electronic commerce triggered by social media. It has been growing very rapidly with enormous discount rate, quality services and precise information. This research analyzes effects of posted numeric information on daily sales volumes. Hetrosckedasticity arises with the real transaction data that was acquired from TicketMonster which is one of the biggest Social Commerce sites in Korea. Therefore, GLS model was applied to have results that original price, discounted price, minimum quantity to have discounted price, and maximum units of sales are statistically significant. Minimum quantity of sales to meet the requirement to have discounted prices has threshold effect on the purchase of consumers like the ways they have group buying on the Internet. However, additional studies are required to identify if this correlated information can be results of reasonable estimates by the vendors and the intermediary or play a role of signal to attract sales. More research opportunities are addressed on services types, consumer groups and information richness.