Online Auctions and Multichannel Retailing

33 Pages Posted: 7 Aug 2012

See all articles by Jason Kuruzovich

Jason Kuruzovich

Rensselaer Polytechnic Institute

Hila Etzion

University of Michigan, Stephen M. Ross School of Business

Date Written: July 2012

Abstract

The Internet enables sellers to offer products through multiple channels simultaneously. In particular, many sellers utilize online auctions in parallel to other online and offline channels. Using an analytical model and data from eBay Motors, we study seller behavior and auction outcomes in the context of multichannel retailing. Our model shows that seller characteristics which affect the distribution and volume of offers in the non-auction channels impact the probability an auction ends in a sale, the probability an item is sold through the auction channel, and the sale price in case of a sale. The impact on the two probabilities can be negative or positive and depends on whether the seller manages the channels jointly or separately. Our empirical analysis examines how the quality of the seller’s retail location and her electronic commerce capabilities (i.e., two seller characteristics influencing demand in non-auction channels) impact the auction channel outcomes. The results confirm the joint channel management strategy considered in the analytical model.

Keywords: Online auctions, multichannel retailing, electronic commerce, channel management

JEL Classification: D44, D21, M30

Suggested Citation

Kuruzovich, Jason and Etzion, Hila, Online Auctions and Multichannel Retailing (July 2012). Ross School of Business Paper No. 1176, Available at SSRN: https://ssrn.com/abstract=2126114 or http://dx.doi.org/10.2139/ssrn.2126114

Jason Kuruzovich (Contact Author)

Rensselaer Polytechnic Institute ( email )

110 8th St
Troy, NY 12180
United States

Hila Etzion

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

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