Transparency Strategy in Internet-Based Selling

Transparency Strategy in Internet-Based Selling

Nelson Granados (University of Minnesota, USA), Alok Gupta (University of Minnesota, USA) and Robert J. Kauffman (University of Minnesota, USA)
Copyright: © 2005 |Pages: 33
DOI: 10.4018/978-1-59140-444-6.ch004
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Abstract

Internet-based selling offers firms many new opportunities regarding the strategies for design of mechanisms to support consumer transactions. This chapter examines the use of transparency as a strategy for Internet-based selling for maximizing firms’ value from their selling activities on the World Wide Web. We define transparency as the extent to which a seller reveals private information to the consumer and explore three of its most often observed dimensions: product, price, and supplier transparency. We evaluate consumers’ responses to each kind of transparency in terms of their willingness-to-pay. We position the theory in the context of the online air travel industry to showcase its applicability and the power of its theoretical insights in an appropriate real world context. We also generalize our findings to suggest some managerial guidelines that will help managers who want to make choices regarding transparency strategy in other Internet-related business contexts.

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Dedication
Table of Contents
Acknowledgments
Kerem Tomak
Chapter 1
David Dranove, Neil Gandal
In April 1997 a consortium of hardware manufacturers and movie studios launched the DVD format. By that fall, electronics retailing giant Circuit... Sample PDF
Surviving a Standards War: Lessons Learned from the Life and Death of DIVX
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Chapter 2
Kevin Zhu
This chapter explores the private and social desirability of information transparency of a business-to-business (B2B) electronic market that... Sample PDF
Information Transparency Hypothesis: Economic Implications of Information Transparency in Electronic Markets
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Chapter 3
Qizhi Dai, Robert J. Kauffman
New technological innovations have made it possible for new intermediaries to create value in business processes that involve the procurement of... Sample PDF
Partnering for Perfection: An Economics Perspective on B2B Electronic Market Strategic Alliances
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Chapter 4
Nelson Granados, Alok Gupta, Robert J. Kauffman
Internet-based selling offers firms many new opportunities regarding the strategies for design of mechanisms to support consumer transactions. This... Sample PDF
Transparency Strategy in Internet-Based Selling
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Chapter 5
Kexi Zhao, Michael J. Shaw, Mu Xia, Chandrasekar Subramaniam
This chapter analyzes the structural dynamics of multilateral business-to-business (B2B) relationships based on game theoretical approach. It... Sample PDF
Structure Evolution of B2B Enterprise Networks
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Chapter 6
Xiaorui Hu, Zhangxi Lin, Han Zhang
Escrow is an emerging trust service in online consumer-to-consumer auction markets in preventing Internet fraud. This chapter studies the effect of... Sample PDF
Perceived Risk and Escrow Adoption in Online Consumer-to-Consumer Auction Markets: An Economic Analysis
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Chapter 7
Pekka Tsupari, Petri Rouvinen
This chapter studies the joint effects of inter-firm collaboration and electronic business on firm profitability primarily in Finnish manufacturing.... Sample PDF
Inter-Firm Collaboration and Electronic Business: Effects on Profitability in Finland
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Chapter 8
Ranjan Dutta, Jonathan J. Koehler
In this chapter, we draw on the behavioral economics literature to identify the conditions under which consumers would prefer one of three pricing... Sample PDF
Pay Now or Later? The Impact of Temporal Separation of Payments and Consumption on Consumer Payment Preferences
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Chapter 9
Kerem Tomak
In this chapter we attempt to build a bridge between mobile commerce and the emerging field of behavioral economics. We first provide examples from... Sample PDF
Economics of Immediate Gratification in Mobile Commerce
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About the Authors