Maximizing willingness to bid within “Buy It Now” auctions

The present research investigates the impact of minimum starting bids and buy-it-now prices on both maximum willingness to bid and attitude toward the seller. Results from an experimental study suggest that higher minimum starting bids coupled with higher buy-it-now prices increase the maximum price...

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Bibliographic Details
Published in:Journal of business research 2013-04, Vol.66 (4), p.554-558
Main Authors: Hardesty, David M., Suter, Tracy A.
Format: Article
Language:English
Subjects:
Anchoring
Auctions
Bidding
Bids
Business studies
Buy-it-now prices
Consumer attitudes
Electronic commerce
Online auctions
Prices
Reference prices
Studies
Willingness-to-pay
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Summary:The present research investigates the impact of minimum starting bids and buy-it-now prices on both maximum willingness to bid and attitude toward the seller. Results from an experimental study suggest that higher minimum starting bids coupled with higher buy-it-now prices increase the maximum price that auction participants are willing to bid yet no negative impact on participants' attitude toward the seller is evidenced. These findings suggest that sellers in online auctions can receive tangible benefits (i.e., higher maximum prices that participants are willing to bid) without negative perceptual results (i.e., attitude toward the seller is not diminished) from setting the minimum starting bid higher and the buy-it-now price higher.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2007.10.008