Yu-Shu Peng, L. Jan
Jun 1, 2009
Journal name not available for this finding
Because of the internet boom, electronic commerce has been radically changing the traditional transaction models. Previous studies have paid attention to the issue of online auctions, while few studies have discussed the association of the hybrid bidding mechanism, which combines different pricing strategies, with the buyers' behavior in online auctions. In this study, we explore the relationship between pricing strategies of online auctions and auction performance under cross-cultural contexts. The research data was collected from eBay websites in France, Belgium, Hong Kong and Singapore. Empirical results show that the starting bidding price is negatively related to the probability of successfully closing the deal in an auction. Using Buy-It-Now price could enhance urgent buyers' speed of their purchasing decisions. Most notably, the cross-cultural generalizability of the proposed model is confirmed by data from four countries.