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Change-point effect of seller reputation grade on the performance of online sales

  • Mo Han Wang*
  • , Min Xu
  • , Qiang Ye
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Reputation system of electronic commerce presents a number of interesting research questions. The existing literatures have mostly focused on the C2C market in the U.S., suggests an impact of seller reputation rating on the final selling price or sales volume. Our work can be distinguished from most existing research. In this paper, we conduct change-point analysis of seller reputation grade effect on sales volume, using BIN dataset of auctions on TaoBao, the largest online auction site in China. We find that, the sellers with reputation grades above a certain change-point have more sales volume and lower selling price than other sellers with reputation grades below a certain change-point significantly. The results indicate that seller reputation grade has nonlinear effect on sales volume and the reduction of consumer search costs in electronic markets puts sellers under increased price competition.

Original languageEnglish
Title of host publicationInternational Conference on Management Science and Engineering - Annual Conference Proceedings
EditorsHua Lan, Yu-Hong Yang
PublisherIEEE Computer Society
Pages15-20
Number of pages6
ISBN (Electronic)9781479953752
DOIs
StatePublished - 17 Oct 2014
Externally publishedYes
Event21th Annual International Conference on Management Science and Engineering, ICMSE 2014 - Helsinki, Finland
Duration: 17 Aug 201419 Aug 2014

Publication series

NameInternational Conference on Management Science and Engineering - Annual Conference Proceedings
ISSN (Print)2155-1847

Conference

Conference21th Annual International Conference on Management Science and Engineering, ICMSE 2014
Country/TerritoryFinland
CityHelsinki
Period17/08/1419/08/14

Keywords

  • C2C
  • change-point analysis
  • e-Commerce
  • seller reputation grade

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