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Herding behavior in C2C E-commerce: Empirical investigation in China

  • Hui Ying Li*
  • , Qiang Ye
  • , Gajendra Sharma
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology
  • Hong Kong Polytechnic University

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

Abstract

The objective of this study is to identify the phenomenon of herding behavior in customers' online purchasing decision. We attempt to explore the effect of historical transaction volume, ratings and price premium on the customers' purchasing decision and their final transaction volume. Based on the panel data collected from Taobao, the largest C2C e-Commerce website in China, linear regression analysis was performed to test the significance of the effects. This study revealed that historical transaction volume, positive ratings and neutral ratings had a significant positive effect on the consumer online purchasing decision, but negative ratings and price premium with a negative effect. We also applied entropy theory to validate the existence of herding behavior from the perspective of information theory, and with a salient result.

Original languageEnglish
Title of host publication2010 International Conference on Management Science and Engineering, ICMSE 2010
Pages33-39
Number of pages7
DOIs
StatePublished - 2010
Externally publishedYes
Event17th International Conference on Management Science and Engineering, ICMSE 2010 - Melbourne, VIC, Australia
Duration: 24 Nov 201026 Nov 2010

Publication series

Name2010 International Conference on Management Science and Engineering, ICMSE 2010

Conference

Conference17th International Conference on Management Science and Engineering, ICMSE 2010
Country/TerritoryAustralia
CityMelbourne, VIC
Period24/11/1026/11/10

Keywords

  • C2C e-commerce
  • Entropy
  • Herding behavior
  • Historical transaction volume

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