| Abstract: | - Online auctions have grown in popularity since the inception of eBay in 1995. Yet despite the phenomenal growth, little is understood about the individual and collective motivations of consumers that lead to higher bids and ultimately, higher profits. This research reframes auction theory in terms of consumer behavior theory and uses observational data to assess bidder‐generated behavior in response to seller‐generated decisions. Results suggest that an increased number of visual cues (pictures) influences bids placed early in the auction and that those early bids generate activity among other bidders, subsequently resulting in higher winning bids. In addition, our findings indicate that the starting price, as determined by the seller, also impacts the final winning bid. Research and seller implications are offered, as are future directions for research in studying this still new phenomenon.
Copyright © 2006 John Wiley & Sons, Ltd. |
