The Effect of Culture and Product Categories on the Level of Use of Buy-It-Now (BIN) Auctions by Sellers

The Effect of Culture and Product Categories on the Level of Use of Buy-It-Now (BIN) Auctions by Sellers

Kevin K.W. Ho (Hong Kong University of Science and Technology, Hong Kong), Byungjoon Yoo (Korea University Business School, Seoul, Korea), Seunghee Yu (Hong Kong University of Science and Technology, Hong Kong) and Kar Yan Tam (Hong Kong University of Science and Technology, Hong Kong)
DOI: 10.4018/978-1-60566-138-4.ch006
OnDemand PDF Download:
$37.50

Abstract

While previous studies on buy-it-now (BIN) auctions focus on the impact of BIN format on economic performances, our study focuses on factors that affect the level of use of BIN auctions by sellers. We propose a conceptual model where culture and product categories are two important factors on the level of use of BIN auctions. Our empirical investigation shows that the level of use of BIN auctions can be explained by the Hofstede Cultural Dimensions. While power distance brings a positive impact, uncertainty avoidance and individualism bring negative impacts on the level of use of BIN auctions by sellers of different countries. Our result also shows that the level of use of BIN auctions by sellers increases with the ease of judging product quality. Our results provide valuable insights for marketplace operators to refine their business strategies and market mechanisms for expanding their businesses to overseas markets.
Chapter Preview
Top

Introduction

With the rapid advancement of information and communication technologies, innovative mechanisms have been developed in the past few years by electronic marketplaces with an aim to facilitate Internet auctions amongst market participants. One of the most important mechanisms developed is the Buy-It-Now (BIN) auction, a variation of ascending auction developed by eBay (http://auctions.yahoo.com) expanded quickly and have established new subsidiary Web sites outside the US. With the increased acceptance of Internet auctions by bidders all over the world and the possibility for marketplace operators to allow users from a country to auction their items in another country1, we foresee that the impact of culture on the operation in the electronic marketplaces, as well as on the participation of bidders and sellers in the electronic marketplaces, will become very important as cultural effect has been proved to be significant in electronic commerce and Web site development (Bin, et al., 2003; Cyr, et al., 2005; Liu, et al., 2004; Pavlou & Chai, 2002; Robbins & Stylianou, 2003). In this study, we investigate the impact of culture on eBay through analyzing data obtained from different eBay Web sites, viz., the US, France, Germany, and Taiwan2. These countries come from different cultural-based country clusters as proposed by Ronen and Shenkar (1985)

The aim of the research is to investigate whether product categories and culture would have impacts on the level of use of BIN auctions by sellers. As shown by analytical and empirical studies, BIN auctions can generate more profits than English auctions and thus, should be welcomed by sellers. However, we notice that in some European countries, the level of use of BIN auctions by sellers is much lower than the US as shown in Table 1. Thus, it would be useful for researchers and practitioners to gain more insight on this phenomenon. The result of this study can enhance our understanding of the impact of culture on electronic commerce in general. Also, we would also investigate the impact of product categories on electronic auctions. The study of the impact of product categories is also important, as prior research has already shown that product categories would have impacts on the selling methods (Levin, et al., 2003; Reinhardt & Lévesque, 2004). In this study, we aim to investigate the relationships between the usage level of BIN auctions by sellers, and culture and product categories. To sum up, we would like to address the following two research questions:

Table 1.
Descriptive statistics of auction data collected from eBay Web sites
DescriptionUSFranceGermanyTaiwan
Number of product categories32263019
Average number of BIN auctions4,429,579278,8123,163,102587,919
Average number of auctions13,829,8261,168,3157,400,102940,845
Range of level of use of BIN auctions by sellers0.0762 to 0.85650.0644 to 0.57470.0277 to 0.78700.4418 to 1.0000
Average level of use of BIN auctions by sellers0.32030.23860.42740.6249

Complete Chapter List

Search this Book:
Reset
Associate Editors
Table of Contents
Preface
M. Gordon Hunter, Felix B. Tan
Acknowledgment
M. Gordon Hunter, Felix B. Tan
Chapter 1
Alexander Y. Yap
Why are some countries successful with e-commerce while others flounder? This chapter is an update of an earlier research study that the authors... Sample PDF
A Composite Model for E-Commerce Diffusion: Revisited
$37.50
Chapter 2
Robert M. Davison, Yuan Li, Carol S.P. Kam
In the last few years, Web-based surveys have received increased attention given their potential to cut the costs and time associated with... Sample PDF
Web-Based Data Collection in China
$37.50
Chapter 3
Jaymeen R. Shah
Privacy laws for the Internet are difficult to develop and implement domestically and internationally. A clear problem is how such laws are limited... Sample PDF
Privacy Protection Overseas as Perceived by USA-Based IT Professionals
$37.50
Chapter 4
Hongxin Zhao, Seung Kim, Taewon Suh, Jianjun Du
This study attempts to examine empirically how social institutional factors relate to Internet diffusion in 39 countries. Based on nine-year... Sample PDF
Social Institutional Explanations of Global Internet Diffusion: A Cross-Country Analysis
$37.50
Chapter 5
Somya Joshi, Michael Barrett, Geoff Walsham, Sam Cappleman
This article investigates how, and with what success, global organisations design computer-based systems for knowledge sharing which aim to balance... Sample PDF
Balancing Local Knowledge Within Global Organisations Through Computer-Based Systems: An Activity Theory Approach
$37.50
Chapter 6
Kevin K.W. Ho, Byungjoon Yoo, Seunghee Yu, Kar Yan Tam
While previous studies on buy-it-now (BIN) auctions focus on the impact of BIN format on economic performances, our study focuses on factors that... Sample PDF
The Effect of Culture and Product Categories on the Level of Use of Buy-It-Now (BIN) Auctions by Sellers
$37.50
Chapter 7
Shirish C. Srivastava, Thompson S.H. Teo
Though policy makers and governments are interested in understanding the returns from e-Government implementation, there are relatively few... Sample PDF
A Framework for Understanding Returns from E-Government
$37.50
Chapter 8
Juan Juan Zhang, Sang-Yong Tom Lee
This article studies the role of international spillover of information and communication technology (ICT) in economic growth. We examine the... Sample PDF
A Time Series Analysis of International ICT Spillover
$37.50
Chapter 9
William Wresch, Simon Fraser
Studies summarized by the United Nations Commission on Trade and Development continue to show that Small and Medium Enterprises (SMEs) in developing... Sample PDF
Technological Hurdles to Caribbean E-Commerce: Responses by Innovative Managers
$37.50
Chapter 10
Robert M. Davidson, Carol S.P. Kim, Maggie Y. Li, Yuan Li, Carol X.J. Ou
In the last few years, Web-based surveys have received increased attention given their potential to cut the costs and time associated with... Sample PDF
Web-Based Surveys in China
$37.50
Chapter 11
David Gefen, Tsipi Heart
Deliberate exploitation of natural resources and excessive use of environmentally abhorrent materials have resulted in environmental disruptions... Sample PDF
On the Need to Include National Culture as a Central Issue in E-Commerce Trust Beliefs
$37.50
Chapter 12
Steven Hornik
The horizontal and vertical dimensions of individualism and collectivism are an important characteristic of cultures. These dimensions have many... Sample PDF
Culture's Impact on Technology Mediated Learning: The Role of Horizontal and Vertical Individualism and Collectivism
$37.50
Chapter 13
Tamara Dinev, Massimo Bellotto, Paul Hart, Vincenzo Russo, Ilaria Serra, Christian Colautti
The study examines differences in individual’s privacy concerns and beliefs about government surveillance in Italy and the United States. By... Sample PDF
Internet Users' Privacy Concerns and Beliefs About Government Surveillance: An Exploratory Study of Differences Between Italy and the United States
$37.50
Chapter 14
Shaobo Ji, Qingfei Min, Weihe Han
The purpose of this study is to review current research activities concerning information systems (IS) in mainland China. We thus examined Chinese... Sample PDF
Information Systems Research in China: An Empirical Study
$37.50
Chapter 15
John Lim
Two seemingly disparate phenomena, advancement in computing technologies and rise in complexity of business negotiations owing to globalization... Sample PDF
A Study in the East Asian Context on Computer Support of Pre-Negotiation and Negotiation Stages
$37.50
Chapter 16
Sang-Woo Lee, Myeong-Cheol Park, Dan J. Kim
This study relies on a customer demand-based view to examine how mobile number portability affects competition in the Korean mobile... Sample PDF
Mobile Number Portability in an Asymmetric Telecommunications Market: Korea Case
$37.50
Chapter 17
Hazel Taylor
As outsourced and multinational IT projects become more common, managing risks for these projects is increasingly important. The research reported... Sample PDF
Vendor vs. Client Risks in Outsourced IT Projects: An Agency Theory Perspective
$37.50
Chapter 18
Susan K. Lippert, John A. Volkmar
Research to date on information technology (IT) adoption has focused primarily on homogeneous single country samples. This study integrates the... Sample PDF
Cultural Effects on Technology Performance and Utilization: A Comparison of U.S. and Canadian Users
$37.50
Chapter 19
Thompson S.H. Teo
The Internet can be used for different purposes ranging from simple Internet presence to using the Internet for business transformation. This study... Sample PDF
Basic vs. Advanced Modes of Internet Adoption: A Singapore Perspective
$37.50
Chapter 20
Clive Sanford, Anol Bhattacherjee
This article presents an interpretive analysis of the key problems and challenges to technology implementation in developing countries, based on a... Sample PDF
IT Implementation in a Developing Country Municipality: A Sociocognitive Analysis
$37.50
Chapter 21
Susan A. Sherer
This article investigates IT investment management processes in the U.S. and Portugal. In Portugal compared to the United States, we find less... Sample PDF
Comparative Study of IT Investment Management Processes in U.S. and Portugal
$37.50
Chapter 22
Ruey-Lin Hsiao
This article examines e-marketplace adoption difficulties from a contextualist perspective. The analysis of industrial characteristics will unearth... Sample PDF
Misaligned Market: The Importance of Industry Context in Technology-Mediated Exchanges
$37.50
Chapter 23
Syaiful Ali, Peter Green
Information technology plays a significant role enabling organisations to achieve their objectives. Accordingly, the governance mechanisms over the... Sample PDF
IT Governance Mechanisms in Public Sector Organisations: An Australian Context
$37.50
Chapter 24
Shirley Chan
In most parts of the world, it is generally considered impolite or even rude to pick up an incoming mobile phone call and to have a longer (and... Sample PDF
Mobile Phone Communication Innovation in Multiple Time and Space Zones: The Case of Hong Kong Culture
$37.50
About the Editor
About the Contributors