Abstract
This research seeks to provide an economic framework for understanding two major forms of e-marketplaces: aggregation-oriented vs. exchange-oriented e-marketplaces. By analyzing the marginal benefit per transaction in alternative models, we are able to determine the most suitable B2B e-marketplace for a wide variety of product categories, market conditions, and procurement methods. For example, when companies sell commodities in a fragmented market, the aggregation model is suitable for spot purchasing, and the exchange model works best for systematic purchasing. In addition, the effect of supplier consolidation and information technology-enabled cost reduction on model selection is discussed.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Bakos Y (1991) A strategic analysis of electronic marketplaces. MIS quarterly 15 (3): 295–310
Bakos Y (1997) Reducing buyer search costs: implications for electronic marketplaces. Management Science 43 (12): 1672–1692
Chang H, Shen S, Schlueter-Langdon C, Shaw M (2003) A Survey on the Industry Sponsored e-Marketplaces, In: Shaw M (ed) E-Business Management, Kluwer Academic Publishers, pp. 277–310
Choi SC (1991) Price Competition in a Channel Structure with a Common Retailer Marketing Science 10(4): 271–296
Jeuland AP, Shugan SM (1983) Managing Channel Profits. Marketing Science 2(3): 239–272
Kaplan S, Sawhney M. (2000) E-Hubs: The New B2B Marketplaces. Harvard Business Review, May–June pp. 97–103.
Konsynski BR (1993) Strategic Control in the Extended Enterprise. IBM Systems Jounal 32 (1): 111–142
Kumar K, Dissel H (1996) Sustainable Collaboration: Managing Conflict and Cooperation in Interorganizational Systems. MIS Quarterly September, pp. 279–300
Lal R, Sarvary M (1999) When and How is the Internet Likely to Decrease Price Competition? Marketing Science 18(4): 485–503
Malone TW, Yates J, Benjamin RI (1987) Electronic markets and electronic hierarchies. Communication of the ACM 30: 484–497
McGuire TW, Staelin R (1983) An Industry Equilibrium Analysis of Downstream Vertical Integration. Marketing Science 2(2) Spring 161–191
McGuire TW, Staelin R (1986) Channel Efficiency, Incentive Compatibility, Transfer, Pricing, and Market Structure: An Equilibrium Analysis of Channel Relationships. Research in Marketing: Distribution Channels and Institutions, 8, Greenwich, CT: JAI Press, pp. 181–223
Moorthy KS (1988) Strategic Decentralization in Channels. Marketing Science 7(4), Fall 335–355
Sculley BA Woods WA (2000) B2B Exchange: The Killer Application in the Business-to-Business Internet Revolution, 1st Edition, ISI publications January
Trivedi M (1998) Distribution Channels: An Extension of Exclusive Retailership. Management Science 44(7): 896–909
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Chang, HL., Easley, R.F. & Shaw, M.J. A comparative study of exchange and aggregation models in the B2B e-marketplace. ISeB 1, 213–228 (2003). https://doi.org/10.1007/s10257-003-0005-3
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/s10257-003-0005-3