Digital Commerce and the Digitally Connected Enterprise
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Paper Type
Complete
Paper Number
2378
Description
The diffusion of digital technologies has been transforming the agriculture sector. Sellers and buyers are increasingly adopting more complex multichannel systems where multiple trading mechanisms are incorporated. This study examines how price and quantity information of an online posted channel (or so-called pre-sales) can influence the performance of a multichannel B2B Dutch auction system. The pre-sales channel runs before the auction and can offer additional cues for buyers prior to their biddings. We find evidence that posted price and quantity information in the pre-sales can positively influence the auction prices. In addition, we investigate the combined effects of these information cues based on which we offer an answer to an interesting yet essential question: Is it better to sell at high prices in the pre-sales or to sell more at discount prices? Consequently, both theoretical and practical implications are provided.
Recommended Citation
Truong, Huong May; Gupta, Alok; Ketter, Wolfgang; and van Heck, Eric, "The Impact of Price and Quantity Information of an Online Pre-sales Channel on Dutch Auctions Performance" (2020). ICIS 2020 Proceedings. 16.
https://aisel.aisnet.org/icis2020/digital_commerce/digital_commerce/16
The Impact of Price and Quantity Information of an Online Pre-sales Channel on Dutch Auctions Performance
The diffusion of digital technologies has been transforming the agriculture sector. Sellers and buyers are increasingly adopting more complex multichannel systems where multiple trading mechanisms are incorporated. This study examines how price and quantity information of an online posted channel (or so-called pre-sales) can influence the performance of a multichannel B2B Dutch auction system. The pre-sales channel runs before the auction and can offer additional cues for buyers prior to their biddings. We find evidence that posted price and quantity information in the pre-sales can positively influence the auction prices. In addition, we investigate the combined effects of these information cues based on which we offer an answer to an interesting yet essential question: Is it better to sell at high prices in the pre-sales or to sell more at discount prices? Consequently, both theoretical and practical implications are provided.
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