Explore Information Disclosure Strategies in Digital Pre-Loved Luxury Market

Abstract

As a fast-growing sector, the pre-loved luxury market is attracting more attention from both practitioners and researchers; yet empirical research on this market remains scarce. Since information asymmetry is a bigger challenge in the digital pre-loved luxury market, it is important to understand the effectiveness of different information disclosure strategies. As one of the first papers to use secondary data to explore this market, this study finds that the information disclosure effect is important yet complicate in the digital pre-loved luxury market, depending on not only how much information to disclose, but also on what type of information to share. While providing more product images helps to sell preowned luxury products faster, providing a benchmark price information may backfire. Further exploring the mechanism, we find that information disclosure influences pre-loved luxury sales also through other marketing mix, such as price. Interestingly, more product image information reduces consumers’ price sensitivity, but extra benchmark price information increases consumers’ price sensitivity. Actionable managerial implications are provided to guide sellers on how to leverage both information disclosure strategies to promote their products in a digital pre-loved luxury market.

Keywords: Pre-loved luxury market, Digital marketing, Information disclosure strategy