Impact of Search Engine Characteristics on Electronic Markets and Sellers' Pricing Strategies

Internet-based electronic markets facilitate buyer search for seller offerings and comparison of products on the basis of price and product features. Search engine capabilities such as Recall, Precision and Ranking Accuracy determine the efficiency with which buyers can search for and compare products and the resulting buyer surplus and seller profits. This research investigates the impact of each of these factors on buyer and seller strategies at equilibrium. This paper explains certain counter intuitive market phenomena where some successful electronic markets offer less choice to buyers than their competitors. The analysis is driven by a set of analytical models of an electronic market under varying conditions of sellers' market shares, buyer search strategies and search engine technology. The models developed here draw from existing theories in information economics and computer science. The results demonstrate that precision has a greater direct impact on buyer surplus than recall and that buyers will forego some choice in exchange for greater accuracy of product description, especially in products that are complex or are characterized by ambiguity in product description and terms of trade. Finally, the seller with the greatest market share stands to gain most from offering search engine services to buyers and in a market characterized by two or more sellers with significant market shares, search engine services will always be offered free of cost to buyers.Information Systems Working Papers Serie

Studying How E-Markets Evaluation Can Enhance Trust in Virtual Business Communities

One of the major drawbacks of conducting business online is the raised level of risk associated with business transactions. Potential business partners usually have limited information about each others reliability or product / service quality before an online transaction. In this paper, we focus on the problem of selecting a trustful electronic market (e-market), in order to perform business transactions with it. In particular, we examine how the decision of selecting an appropriate e-market can be facilitated by an e-market recommendation algorithm. For this purpose, a metadata model for collecting and storing e-market evaluations from the members of a virtual business community in a reusable and interoperable manner is introduced. Then, an e-market recommendation algorithm that can synthesize existing e-market evaluations stored using the metadata model, is designed. Finally, a scenario of how the presented e-market recommendation algorithm can support a virtual agribusiness community of the organic agriculture sector is discussed.E-market, metadata, recommender system, virtual community, Institutional and Behavioral Economics, Marketing,

PREMIUMS/DISCOUNTS AND PREDICTIVE ABILITY OF THE SHRIMP FUTURES MARKET

Seafood futures contracts are a novelty in the derivative markets, having shrimp as their only exponent. Unfortunately, shrimp futures contracts have suffered a disappointing start. The analyses focus on testing whether premiums/discounts for non-par deliverable shrimp size categories can eliminate cash price differentials, and whether the shrimp futures market can predict cash prices without bias. Results indicate ineffective premiums/discounts and predictive bias. These results and the momentous changes taking place in the seafood industry are contrasted to discuss the viability of seafood futures contracts.Agribusiness,

Power Struggle in the Food Chain? Lessons from Empirical Studies on Power Influences in Chains and Marketing Channels

Power plays a key role in any chain relationship. In the past large manufacturers such as Unilever and Nestle were the most dominant players in the chain. However, as a result of consolidation among retailers, power has shifted towards retailers. Nowadays such retailers as Wal-Mart, Carrefour, and Tesco are seen as powerful gatekeepers controlling the access to the end consumer. Moreover, branded manufacturers and large multinational retailers become increasingly dependent on fewer and larger suppliers who can deliver high quality products at competitive prices. Since many decades there is discussion going on about the role of power in chains and marketing channels. In order to understand how power and its interactions with other constructs in the chain can be used beneficially for management of the whole chain, it is of great importance to investigate the influences and effects of power. Some of the phenomena which are said to be influenced by power include performance, satisfaction, commitment, relationship quality, conflict, compliance, problem solving, chain integration and collaboration. In this context, the aim of our work is to analyze and systemize existing empirical studies, which measure the influences of power on other phenomena, and discuss the strengths and weaknesses of existing conceptualizations of power, in order to add clarity to the existing turmoil in the literature and contribute to the understanding of the role of power in chains and marketing channels for managerial purposes.Power, Power Conceptualization, Supply Chain, Supply Chain Network, Marketing,

Luxury Box E-Commerce Website And Simulation With MP2 System

Electronic commerce or E-commerce is the media through which people can do the business activities or business process online with the help of internet. In this process buying of goods, selling of products or serve services for business are under one roof means there is no need to go outside for buying any product or selling any product, each and every business transaction can do online through computer.  Luxury box is an online shop that was founded in 2020. The researcher observe that there was a lack of online promotions to introduce new potential customers at the online shop and managing product by the owner, therefore the researcher used the MP2 system to build the website. The data collections are observation and Interview. The researcher is focused on convenience and security that can provide smoothness for luxury box customers. The research methodology used is qualitative research. The results of this study are in the form of a website that is supported by WordPress version 6.0.1 technology. The web pages contained in the website are generally divided into 2 (two) parts, the dashboard page that is used by the admin to manage the content that will be displayed on the website, website page that displays the results of content management created by the admin and can be accessed by website visitors

NETWORKS OF SMES: THE ECOLEAD APPROACH TO SUPPORT COLLABORATION AMONG SMES

Faced to the globalization of the markets, SMEs develop new forms of relationships aimed at reinforcing their productivity. One of them is based on the development of networks of SMEs. Even if this concept is not new (see Italian Industrial Districts in the 19th century), it is now growing at a dynamic pace. The concept of Virtual Organizations Breeding Environment (VBE) is one expression of this phenomenon deeply developed in the Ecolead\u27s project. This paper proposes to deliver insighst on this promising concept, associated ICT tools and also a presentation of an in- progress case study

Reverse Auction in Pricing Model

Dynamic price discrimination adjusts prices based on the option value of future sales, which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination, and confronts the theories with new data from airline pricing behavior, Consider a multiple booking class airline-seat inventory control problem that relates to either a single flight leg or to multiple flight legs. During the time before the flight, the airline may face the problems of (1) what are the suitable prices for the opened booking classes, and (2) when to close those opened booking classes. This work deals with these two problems by only using the pricing policy. In this paper, a dynamic pricing model is developed in which the demand for tickets is modeled as a discrete time stochastic process. An important result of this work is that the strategy for the ticket booking policy can be reduced to sets of critical decision periods, which eliminates the need for large amounts of data storage