ABSTRACT
In this paper, the authors argue that auctions are not only affected by their information cues but also contrasting, peripheral information cues from adjacent auction listings. The authors examine the effects of time urgency and persuasion intent on the processing of this contrasting peripheral information. Using two controlled experiments and an empirical field study, the authors show that time urgency experienced by bidders in online auctions results in increased heuristic processing of contrasting information from adjacent auction listings. The authors also found that bidders will discount contrasting peripheral information if they perceive salient persuasion intents in advertising presented by the auctioneers. The resulting contrast effects ultimately lead to changes in willingness to pay. The following is an extended abstract. The full version of the paper can be obtained from any of the authors.
- T. Y. Chan, V. Kadiyali, and Y.-H. Park, "Willingness to Pay and Competition in Online Auctions," Journal of Marketing Research, vol. 44, pp. 324--333, 2007.Google ScholarCross Ref
- A. E. Roth and A. Ockenfels, "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," American Economic Review, vol. 92, pp. 1093--1103, 2002.Google ScholarCross Ref
- R. Suri and K. B. Monroe, "The Effects of Time Constraints on Consumers' Judgments of Prices and Products," Journal of Consumer Research, vol. 30, pp. 92--104, 2003.Google ScholarCross Ref
- G. V. Johar, D. Maheswaran, and L. A. Peracchio, "MAPping the Frontiers: Theoretical Advances in Consumer Research on Memory, Affect and Persuasion," Journal of Consumer Research, vol. 33, pp. 139--149, 2006.Google ScholarCross Ref
- J. C. Bockstedt and K. H. Goh, "Seller Strategies for Differentiation in Highly Competitive Online Auction Markets," Journal of Management Information Systems, vol. 28, pp. 233--266, 2012. Google ScholarDigital Library
- A. Everard and D. F. Galletta, "How Presentation Flaws Affect Perceived Site Quality, Trust, and Intention to Purchase from an Online Store," Journal of Management Information Systems, vol. 22, pp. 55--96, 2006. Google ScholarDigital Library
- M. Sherif and C. I. Hovland, Social Judgment: Assimilation and Contrast Effects in Communication and Attitude Change. New Haven, CT: Yale University Press, 1961.Google Scholar
- J. C. Nunes and P. Boatwright, "Incidental Prices and Their Effect on Willingness to Pay," Journal of Marketing Research, vol. 41, pp. 457--66, 2004.Google ScholarCross Ref
- A. L. Geers and G. D. Lassiter, "Affective assimilation and contrast: Effects of expectations and prior stimulus exposure," Basic and Applied Social Psychology, vol. 27, pp. 143--154, Jun 2005.Google ScholarCross Ref
- S. S. Brehm and J. W. Brehm, Psychological Reactance: A Theory of Freedom and Control. NY: Academic Press, 1981.Google Scholar
Index Terms
- Effects of simultaneous auctions on willingness-to-pay in online auctions
Recommendations
The effects of proxy bidding and minimum bid increments within eBay auctions
We present a mathematical model of the eBay auction protocol and perform a detailed analysis of the effects that the eBay proxy bidding system and the minimum bid increment have on the auction properties. We first consider the revenue of the auction, ...
Understanding Willingness-to-Pay Formation of Repeat Bidders in Sequential Online Auctions
A growing number of vendors are using a sequence of online auctions to sell large inventories of identical items. Although bidding strategies and bidder behavior in single auctions have been extensively studied, limited research exists on bidding in ...
Predicting Bidders' Willingness to Pay in Online Multiunit Ascending Auctions: Analytical and Empirical Insights
We develop a real-time estimation approach to predict bidders' maximum willingness to pay in a multiunit ascending uniform-price and discriminatory-price (Yankee) online auction. Our two-stage approach begins with a bidder classification step, which is ...
Comments