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Analyzing the Impact of Public Buyer–Seller Engagement During Online Auctions

Seller and product authentication problems are inherent in online markets, particularly in the time-constrained setting of online auctions. Although trust-building mechanisms such as seller feedback can mitigate these problems, they are retrospective, providing information about a transaction only after it is completed. Also, they have only indirect effects on buyers’ trust in sellers because they are not based on direct interactions between a trustor (buyer) and a trustee (seller). On the other hand, direct engagement between transacting parties during an online auction, particularly open and public engagement, reduces information asymmetry between buyers and sellers and has a direct effect on buyers’ trust. In this paper, we analyze how public buyer–seller engagement via question and answer (Q&A) during online auctions impacts bidding behavior. Analyzing auction data from a large auction platform that supports public Q&A between buyers and sellers, we show that the seller’s engagement with buyers during an auction can significantly impact the behavior of both buyers who ask questions and lurkers who passively observe the engagement (spillover effect). Our analysis also shows that the impact of the seller’s engagement depends on features such as product type and seller reputation. A key insight from our study is that the impact of seller engagement on bidding behavior is moderated by seller feedback ratings, which indicates that trust-building mechanisms in online markets interact in their effects on buyers’ decision making. As sellers gain positive (negative) feedback, the impact of buyer–seller engagement on bidding behavior increases (decreases). Furthermore, the cost of an additional negative feedback rating outweighs the benefit of a positive one. Overall, this study provides valuable insights for online auction platforms and their stakeholders.

Ketersediaan

Informasi Detail

Judul Seri

INFORMATION SYSTEMS RESEARCH; Vol.33 No.4 December 2022

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 1264-1286

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

TRUST BUILDING
ONLINE AUCTION
PUBLIC Q&A
SELLER ENGAGEMENT
SELLER REPUTATION
FIXED EFFECTS ESTIMATION

Info Detail Spesifik

https://doi.org/10.1287/isre.2022.1114

Pernyataan Tanggungjawab

Arvind K. Tripathi, Young-Jin Lee, Amit Basu

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