EFFECTS OF PRICE RECOMMENDATIONS IN NAME-YOUR-OWN-PRICE AUCTIONS

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					                           Journal of Electronic Commerce Research, VOL 12, NO 1, 2011


      EFFECTS OF PRICE RECOMMENDATIONS IN NAME-YOUR-OWN-PRICE
                             AUCTIONS

                                                Kholekile L. Gwebu
                                          Department of Decision Sciences
                                    Whittemore School of Business and Economics
                                           University of New Hampshire
                                               khole.gwebu@unh.edu

                                                     Jing Wang
                                          Department of Decision Sciences
                                    Whittemore School of Business and Economics
                                           University of New Hampshire
				
DOCUMENT INFO
Description: This article examines how price cues can be used strategically to influence consumers' perceptions and bid judgments in Name-Your-Own-Price (NYOP) auctions. It focuses on three specific types of price cues: a low and plausible price cue, a high but implausible price cue, and a range price cue that is bounded at the upper end by the high price cue and at the lower end by the low price cue. A controlled experiment indicates that consumers perceive the range and low price cue as more useful in aiding their bidding decisions than the high price cue. The range and low price cue positively impact bidders' confidence in winning while the high price cue reduces their confidence level. Interestingly, consumers' value and bid judgments' can be influenced by the high price cue even though they view it with skepticism. The low end of a range price cue is found to have a greater impact on consumers' perceptions and bid judgments than the high end, possibly because a range price cue has the potential to make loss aversion more pronounced. [PUBLICATION ABSTRACT]
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