Competition Between Auctions

Even though auctions are capturing an increasing share of commerce, they are typically treated in the theoretical economics literature as isolated. That is, an auction is typically treated as a single seller facing multiple buyers or as a single buyer facing multiple sellers. In this paper, we review the state of the art of competition between auctions. We consider three different types of competition: competition between auctions, competition between formats, and competition between auctioneers vying for auction traffic. We highlight the newest experimental, statistical and analytical methods in the analysis of competition between auctions

Competition Between Auctions

Even though auctions are capturing an increasing share of commerce, they are typically treated in the theoretical economics literature as isolated. That is, an auction is typically treated as a single seller facing multiple buyers or as a single buyer facing multiple sellers. In this paper, we review the state of the art of competition between auctions. We consider three different types of competition: competition between auctions, competition between formats, and competition between auctioneers vying for auction traffic. We highlight the newest experimental, statistical and analytical methods in the analysis of competition between auctions.auctions, bidding, competition, auction formats, auction houses

Store switching behavior

Abstract This study describes temporal aspects of consumer shopping behavior. Most cross-sectional studies either explicitly or implicitly assume that consumer choice behavior is constant over time. The results of this study, which is based on scanner panel data for twenty-one grocery stores for three years in Missouri, indicates that consumers are involved in substantial store-switching and variety-seeking behavior, the degree of which is related to a set of sociodemographic variables

Short- and long-run competition of retailer pricing strategies

Retailers' pricing strategies are one of the most important determinants of the retail dynamics and the competitive structure of the retail market. Retailers use both short-term and long-term pricing strategies to optimize their market share. This study addresses several critical questions: (1) To what extent do retailers react to competitive price specials? (2) Do retailers alternate price specials of competing brands? and, (3) Can one identify stores or brands, that are price leaders or do retailers/brands set prices independently? We use cointegration analysis to estimate a model which allows us to study both the short- and the long-run dynamics of competitive prices within a single framework

A consumer-based method for retailer equity measurement: Results of an empirical study

This research extends the consumer-based brand equity measurement approach to the measurement of the equity associated with retailers. This paper also addresses some of the limitations associated with current retailer equity measurement such as a lack of clarity regarding its nature and dimensionality. We conceptualise retailer equity as a four-dimensional construct comprising retailer awareness, retailer associations, perceived retailer quality, and retailer loyalty. The paper reports the result of an empirical study of a convenience sample of 601 shopping mall consumers at an Australian state capital city. Following a confirmatory factor analysis using structural equation modelling to examine the dimensionality of the retailer equity construct, the proposed model is tested for two retailer categories: department stores and speciality stores. Results confirm the hypothesised four-dimensional structure

Retail-led Regeneration and Store Switching Behaviour

Retail-led regeneration of ‘food deserts’ has become accepted policy in the UK, although the impacts of such stores remain under-researched. It is assumed that residents will switch their shopping behaviour to the new store and then alter their purchasing patterns to include more healthy options. A pre- and post ‘intervention’ study in a deprived area and an equally deprived non-intervention area of Glasgow finds that high switching rates to the new store were identified, indicating some success in altering shopping behaviours. Many switched from large food stores outside the area to shopping within the area. Dietary patterns in the intervention area were maintained after store development; store switching did not induce dietary switching. Results suggest policy should be based on attempting to change both shopping and purchasing behaviours rather than assuming the latter will automatically be transformed by new retail spaces and offers

Retail format selection in on-the-go shopping situations

Consumers patronize different store formats to purchase products. Prior literature describes store and format choices for big, multi-item shopping baskets, but limited insights determine consumers' unique shopping routines when they seek to buy just one or a few items while on the go. Such shopping situations might affect consumers' format selections for both search and experience goods. This study uses multi-attribute utility theory to develop a framework, tested with a scenario-based experiment. For search goods, a format's economic utility (price level, speed) is more important; its functional utility (quality, variety) and psychological utility (atmosphere, service) become less important considerations. Furthermore, the tolerable range of formats is larger for search goods. The level of on-the-go purchase and consumption frequency moderates these effects. Therefore, this research helps to clarify what drives consumers' format selections in on-the-go shopping situations, with useful managerial insights for how retailers can compete in the growing on-the-go market

Beyond posted prices: the past, present and future of participative pricing mechanisms

Driven by the low transaction costs and interactive nature of the internet, customer participation in the price-setting process has increased. These changes were first brought about by the rise of online auctions in the early 2000s, followed by the emergence of newer participative mechanisms. Today, platforms such as eBay have popularized online auctions on a global scale, Priceline has made headlines with its name-your-own-price (NYOP) business model, and Humble Bundle has enabled independent musicians and game developers to market their works through pay-what-you-want (PWYW) pricing. Advertising exchanges conduct several hundred million individual auctions per day to sell online advertising slots. These are just a few examples of participative pricing in transactions among consumers or businesses. In parallel, academic research on participative pricing has blossomed in recent years, with an overarching concern over the profitability and other marketing implications these mechanisms have on sellers and buyers. The present paper contributes to this literature in three ways. First, we propose a definition of participative pricing mechanisms, as well as a useful taxonomy. Second, we discuss the current understanding by synthesizing conceptual and empirical academic literature. Third, we outline promising research questions with a key focus on the related behavioral aspects of buyers and sellers