Jaikumar

MANAGEMENT SLANT

  • In an e-marketplace where multiple sellers offer the same product, seller choice is a function of display price and sellers’ review volume.
  • Consumers use the display price as an anchor and then compare sellers on the basis of their review volume.
  • This study found that consumers more likely would purchase the product (at display price) from sellers with high review volume.
  • E-marketplaces should select display prices on the basis of review volume of sellers, not on the basis of the lowest price offering.
  • The study also emphasizes the need for sellers to generate higher review volume.