Fairs for e-commerce: the benefits of aggregating buyers and sellers

In recent years, many new and interesting models of successful online business have been developed. Many of these are based on the competition between users, such as online auctions, where the product price is not fixed and tends to rise. Other models, including group-buying, are based on cooperation between users, characterized by a dynamic price of the product that tends to go down. There is not yet a business model in which both sellers and buyers are grouped in order to negotiate on a specific product or service. The present study investigates a new extension of the group-buying model, called fair, which allows aggregation of demand and supply for price optimization, in a cooperative manner. Additionally, our system also aggregates products and destinations for shipping optimization. We introduced the following new relevant input parameters in order to implement a double-side aggregation: (a) price-quantity curves provided by the seller; (b) waiting time, that is, the longer buyers wait, the greater discount they get; (c) payment time, which determines if the buyer pays before, during or after receiving the product; (d) the distance between the place where products are available and the place of shipment, provided in advance by the buyer or dynamically suggested by the system. To analyze the proposed model we implemented a system prototype and a simulator that allow to study effects of changing some input parameters. We analyzed the dynamic price model in fairs having one single seller and a combination of selected sellers. The results are very encouraging and motivate further investigation on this topic

Identifying Effective Online Service Strategies: The Impact of Network Externalities and Organizational Lifecycle Stage

This study presents a framework for identifying effective online transaction-based service strategies that incorporates network externalities and organizational life cycle theories. The framework considers changes in marginal costs, marginal revenues, and service value as the company moves through its initial three life cycle stages (start-up, growth, and maturity). Propositions describe potentially effective strategies for service sites in each lifecycle stage. Each of the propositions is supported by real-world strategy examples and research related findings from three industries – online auctions, online career services and online travel services. Start-up strategies must focus on increasing the number of service users, growth companies need to differentiate themselves from their competitors, and large mature service providers can take advantage of their financial resources and service value by raising entry barriers to maintain their dominant position. This study provides a multi-theory perspective that can be used as a basis for further study of strategies used in these industries

The Effect of Consumer Shopping Motivations on Online Auction Behaviors: An Investigation of Searching, Bidding, Purchasing, and Selling

The purposes of the study were to: 1) identify the underlying dimensions of consumer shopping motivations and attitudes toward online auction behaviors; 2) examine the relationships between shopping motivations and online auction behaviors; and 3) examine the relationships between shopping attitudes and online auction behaviors. Students (N = 341) enrolled at the University of North Texas completed self-administered questionnaires measuring shopping motivations, attitudes, online auction behaviors, and demographic characteristics. Using multiple regression analyses to test the hypothesized relationships, shopping motivations and shopping attitudes were significantly related to online auction behaviors. Understanding the relationships is beneficial for companies that seek to retain customers and increase their sales through online auction

Electronic Mediation, Transformation, and Business Value: Three Essays in the Retail Auto Industry

This dissertation seeks to answer the following research questions: (1) what properties enable some organizations to generate more value from information technology (IT) than others? and (2) through what mechanisms do organizations generate value through IT? It examines the role of technology in value creation through three essays using three different aspects of organizational performance. Chapter 1: Responding to Technology-Enabled Organizational Transformation: The Role of Strategic Change Orientation Essay one examines the role of strategic change orientation and three change enablers--IT capabilities, climate for IT use, and mindfulness of IT adoption--in influencing business process performance during a period of IT-enabled transformation. The data source for this essay is a survey of auto retailers facilitated by a leading online infomediary. Chapter 2: Profiting From the Internet Channel: The Complementarity of Electronic Commerce Capabilities and Business Process Change Essay two accesses the joint role of electronic commerce capabilities and business process change in a model that examines the value firms derive from the Internet channel. The data source for this essay is a survey of auto retailers conducted by a leading market research firm. Chapter 3: Understanding Retailer Use of Online Auction Channels: Strategies In Repeated Search Processes Essay three examines sellers' use of the online auction market and the resulting value obtained for a given product through the theoretical lens of search theory. We model sellers' repeated listing of unsold products and adjustment of reserve price as a process of searching for high valuation customers. The data source for this essay is transactional data from a leading online auction site specializing in automobiles