Internet Reverse Auctions: Listening to the Voices of Non-Adopters

Abstract

Once a company implements an internet reverse auction platform, buyers often have considerable discretion as to whether or not to utilize it. This paper discusses many reasons for fire non-adoption of Internet reverse auctions. The focus is on factors that impact the fit between the Internet reverse auction technology and the characteristics of the particular purchasing task that the buyer must carry out (i.e., characteristics of the material or service to be purchased in the market that it is to be purchased from). Data (qualitative comments) were collected from buyers within one firm. The comments detail the reasons that buyers have not used reverse auctions for particular commodities. Of the 9 factors identified in the literature review, 4 were actually cited by buyers. These are: specifiability, level of competition for the buyer’s business, importance of non-price factors, and dollar volume