Understanding the role of Surcharfe Information Transparency and Pricing Strategies in Online Auctions
The current study offers insights into how different surcharge strategies can influence online auction success variables. We collected information of new iPod Nano auction transaction on eBay and found that auctions that did not provide clear shipping and handling (S&H) surcharge information significantly received lower final bids. This lack of transparency did not however affect the number of bids an auction received. We also found that, contrary to the traditional wisdom in the area of partitioned-pricing, online bidders can accurately adjust their bids according to the auctions’ surcharge amount. In addition, we found that the strategy of charging a higher S&H surcharge in an attempt to avoid commission fees did not help promote auction sellers’ revenue, nor the number of bids in the auctions. Practical guidelines are later offered in the study.
Muthitacharoen, Achita and Perry, John T., "Understanding the role of Surcharfe Information Transparency and Pricing Strategies in Online Auctions" (2009). AMCIS 2009 Proceedings. 555.