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)
Copyright: © 2007 |Pages: 19
DOI: 10.4018/jgim.2007100101

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.

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