The effect of online C2C markets on new-product-purchasing behavior: an empirical analysis of Japanese selling apps

SN Business & Economics - Tập 1 - Trang 1-21 - 2021
Shinichi Yamaguchi1
1Center for Global Communications, International University of Japan, Tokyo, Japan

Tóm tắt

This study quantitatively investigated the effect of purchases and sales on selling apps on new-product-purchase behavior, based on questionnaire data from 20,000 consumers. To sufficiently address endogeneity, individual consumer preferences were incorporated into the model and a GMM (generalized method of moments) model employing instrumental variables was utilized. The results showed substitution effects where an increase in the value of purchases on selling apps led to a decrease in the value of new-product purchases for three categories: “hair products cosmetics, and fragrances,” “consumer electronics, smartphones,” and “toys and hobbies”. These elasticities were − 0.089 (hair products cosmetics, and fragrances), − 0.114 (consumer electronics, smartphones), and − 0.183 (toys and hobbies), respectively. For sales on selling app, however, complementary effects were found for all categories where an increase in the value of selling app sales led to an increase in the value of new-product purchases. These elasticities were 0.058 (fashion), 0.104 (sports and leisure products), 0.212 (hair products, cosmetics, and fragrances), 0.124 (consumer electronics, smartphones, etc.), 0.126 (entertainment products), and 0.155 (toys and hobbies, etc.), respectively. Furthermore, Subjective consumer assessment showed that the number of people who thought the value of new-product purchases would increase due to selling app use was higher than those who thought it would decrease. These findings imply that companies that develop products, which can be easily transacted, searched for, and accepted on selling apps can increase sales using selling apps in marketing strategies such as information transmission, branding, and customer loyalty.

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