The importance of product representation online: empirical results and implications for electronic markets

Decision Support SystemsPublished 23 November 2003

Otto Koppius, Eric van Heck, Matthijs J.J. Wolters

DOI10.1016/s0167-9236(03)00097-6

Source URL

Citations61

SJR quartileQ1

SJR score2.37

SNIP2.59

TL;DR

Investigating the effects of online product representation at a large Dutch flower auction that implemented screen auctioning concludes that deficient product representation may be a partial explanation for reduced prices in electronic markets.

Abstract

We investigate the effects of online product representation at a large Dutch flower auction that implemented screen auctioning. In screen auctioning, flowers are not physically shown to the buyers anymore; instead, an image is presented on a screen to buyers in the auction hall. This online product representation entailed a decrease in information about flower quality compared to the physical product representation. Analysis of the transaction data before and after screen auctioning revealed lower prices after the introduction of screen auctioning. We conclude that deficient product representation may be a partial explanation for reduced prices in electronic markets.

Keywords

Decision SciencesBusiness, Management and Accounting

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