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The study intends to discover the relationship between the seller traits, auction characteristics and product characteristics under the eBay auction model by setting price as variable.
We have collected 3716 sample data of Toyota Camry from eBay motor. By conducting the analysis of narrative statistics, Heckman two stage model and probit model, we conclude 4 main findings for this study.
First, there is a significant positive correlation between final transaction price and initial bid price for auction merchandises. Moreover, the final transaction price is significantly higher, if the bidding frequency is high. The option for direct purchase – Buy It Now, does not influence the results mentioned above.
Second, from the perspective of narrative statistics, the final transaction price ranking under different auction circumstances can be concluded as:
1. Direct purchase price – “Buy It Now”
2. Bid price with direct purchase price option – “Buy It Now”
3. Bid price
However, from the result of Probit model, the relationship is only significant between direct purchase price and bid price.
Third, under the condition that the seller owns a dealership, the gap between direct purchase price (Buy It Now) and bid price is greater. Under the condition of promotion sell, direct purchase price (Buy It Now) tend to be close to a bid price.
Fourth, sellers tend to set direct purchase (Buy It Now) option for a high value used cars. The purchase rate is higher for a used car with low Kelly Blue Book valuation price, comparing to a used car with high Kelly Blue Book valuation price. | en_US |