The effects of contextual cues on online auction outcomes: a quasi-experimental approach
by Justine Brown, David R. Fortin, Peter Rhodes
International Journal of Internet Marketing and Advertising (IJIMA), Vol. 5, No. 4, 2009

Abstract: The purpose of this paper is to propose a conceptual model of the determinants of online auction interest and final selling price. Using an innovative quasi-experimental methodology, data was gathered by observing 431 real online auction site transactions, over the four product categories DVD movies, Books, Laptops and Cars, reflecting high versus low personal involvement categories. Key findings suggest that seller reputation is important for high-involvement goods and impacts on the final selling price, as does the starting price for low-involvement goods. In addition, there appears to be a direct correlation between the number of bids and the level of interest in the auction for all the product categories examined in this study. These findings provide some empirical evidence about the influence of selected auction characteristics on the auction's final outcome, using real-world transactions on a large online auction site. Finally, the study examines the contrasts between traditional in-person auction theory and the rapidly growing online auction market. Managerial implications and directions for future research are also presented.

Online publication date: Tue, 11-Aug-2009

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