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Suggest You - Starting Low and Ending High in eBay Online Auctions
Selecting a rock-solid Certified Public Accountant (CPA) should be one of the first steps taken for anyone starting a small business. An accountant worth her weight in ledgers will not only help you plan and prepare your business taxes, she can also advise you on key decisions that will help you start and manage your small business. Selecting an accountant will likely be one of the most important decisions you make as a budding entrepreneur.A good accountant can save your business thousands of dollars and save countless hours in your valuable time. Conversely, a poor accountant’s mistakes will eat into your pr
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fi
Is your shyness causing your trouble at work and limiting your potential?Do you hate the thought of presenting or speaking in front of other people at work?Do you have trouble introducing yourself to co-workers or carrying on a conversation with people you don’t know?With the rise of email, online shopping, chat rooms, ATMs for banking and other devices that prevent or inhibit direct contact with other humans, it has become easier for people to hide their shyness and get by in certain situations.But at the end of the day, job interviews are still done face to face and when the big work pre
A recent paper by Gillian Ku of London Business School, Starting Low but Ending High: A Reversal of the Anchoring effect in Auctions has investigated the effect of starting price on the final value of online auctions and discovered that it is indeed the case that low starting prices increase ending price. Ku et al have discovered that three effects of lower starting prices lead to higher ending prices:
* Lower starting prices reduce barriers to entry, which increases bids and generates higher prices
* Lower starting prices entice bidders to invest time and energy, increasing their commitment to the auction
* The extra bids generated by lower starting prices infer value in the item, encouraging more traffic
These findings are at odds with previous research on negotiations which finds that ending prices were highly related to starting price. In the more social environment of auctions (especially online auctions such as eBay), this trend is reversed. Ku performed six studies to investigate the effect of starting price on ending price, several of which were related to eBay (these are studies 2, 3 and 5 detailed below). Study 2: Starting low and ending high on eBay
The results of eBay online auctions were analysed to establish the relationship between staring and ending prices. For this study, two types of auctions were identified:
* Independent value auctions. These are highly individual auctions where the price is difficult to predict e.g. collectibles
* Common value auctions. Auctions of common items where there is a market price.
For the independent value auctions they choose to analyse Tabriz Persian rugs and for the common value auctions Nikon digital cameras. The following results were found for both types of auction
* Lowers starting price auctions were more likely to be successful
* Lowers starting prices auction results in more bids and more unique bidders.
* Lower staring prices resulted in higher ending prices
Study 3: Escallation of Commitment on eBay
This study set out to investigate the effect of escalation of commitment on prices rises. Is it the case that once the bidder has placed a bid they have invested time and are more likely to bid again?
Ku et al focused their attention on a particular eBay seller, Browncow, who sells Hawaiian shirts starting at $9.99 and $24.99. Analysing the results of 89 auction produced the following conclusions
* Low staring prices bring bidders into the auction early
* Low starting prices encourage bidders to accumulate sunk costs into the auction. Low starting price winners have spend more time in the auction and make more bids than low starting price losers or bidders in high starting price auctions.
Study 4 Inferring value from Traffic and Current Prices
Test subjects were asked to judge the proper value of an mocked-up eBay item (holiday package) with which they were presented. It was found that the number of bids which the items had lead to higher valuations. Study 5 Starting Low and Ending Low on eBay
This study found that for auctions where there were less bids, the starting price did have an effect on ending price. By comparing the outcome of similar items where there were misspellings in the titles, it was found that this created a barrier to auction traffic, reducing final prices Lessons from research
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fix
Gain an audience by recognizing opportunity There’s a sexier method to salsa into a great career with less tripping and more flair. Look for problems to solve and create a personalized solution. Find those challenges by spotting company movement of any kind, whether the change is good, bad or ugly. If you do this, you’ll capitalize on an opportunity to be heard and get that coveted invitation to dance in the king’s court.Hot career tip: If you want to infiltrate an intended employer fortress, a feat that other job seekers assume impossible, remember that it’s much easier if the inhabita
* The extra bids generated by lower starting prices infer value in the item, encouraging more traffic
These findings are at odds with previous research on negotiations which finds that ending prices were highly related to starting price. In the more social environment of auctions (especially online auctions such as eBay), this trend is reversed. Ku performed six studies to investigate the effect of starting price on ending price, several of which were related to eBay (these are studies 2, 3 and 5 detailed below). Study 2: Starting low and ending high on eBay
The results of eBay online auctions were analysed to establish the relationship between staring and ending prices. For this study, two types of auctions were identified:
* Independent value auctions. These are highly individual auctions where the price is difficult to predict e.g. collectibles
* Common value auctions. Auctions of common items where there is a market price.
For the independent value auctions they choose to analyse Tabriz Persian rugs and for the common value auctions Nikon digital cameras. The following results were found for both types of auction
* Lowers starting price auctions were more likely to be successful
* Lowers starting prices auction results in more bids and more unique bidders.
* Lower staring prices resulted in higher ending prices
Study 3: Escallation of Commitment on eBay
This study set out to investigate the effect of escalation of commitment on prices rises. Is it the case that once the bidder has placed a bid they have invested time and are more likely to bid again?
Ku et al focused their attention on a particular eBay seller, Browncow, who sells Hawaiian shirts starting at $9.99 and $24.99. Analysing the results of 89 auction produced the following conclusions
* Low staring prices bring bidders into the auction early
* Low starting prices encourage bidders to accumulate sunk costs into the auction. Low starting price winners have spend more time in the auction and make more bids than low starting price losers or bidders in high starting price auctions.
Study 4 Inferring value from Traffic and Current Prices
Test subjects were asked to judge the proper value of an mocked-up eBay item (holiday package) with which they were presented. It was found that the number of bids which the items had lead to higher valuations. Study 5 Starting Low and Ending Low on eBay
This study found that for auctions where there were less bids, the starting price did have an effect on ending price. By comparing the outcome of similar items where there were misspellings in the titles, it was found that this created a barrier to auction traffic, reducing final prices Lessons from research
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fi
How does the world see you? It may not be the way you see yourself. Either way, it's time you find out!Recently I typed my own name into a series of search engines to see how well known I was. Surprise, surprise! I learned in England I am a soccer star with adoring fan clubs and celebrity status, in New Zealand I'm a playwright, author and editor. Stateside I am either a Gastroenterologist in Kalispell, Montana or a gospel singer with 4 CDs to my name in Ohio. Who knew!My point? We need to know how our customers regard us. Is there market clarity or market confusion? Are customers as clear about who we
* Common value auctions. Auctions of common items where there is a market price.
For the independent value auctions they choose to analyse Tabriz Persian rugs and for the common value auctions Nikon digital cameras. The following results were found for both types of auction
* Lowers starting price auctions were more likely to be successful
* Lowers starting prices auction results in more bids and more unique bidders.
* Lower staring prices resulted in higher ending prices
Study 3: Escallation of Commitment on eBay
This study set out to investigate the effect of escalation of commitment on prices rises. Is it the case that once the bidder has placed a bid they have invested time and are more likely to bid again?
Ku et al focused their attention on a particular eBay seller, Browncow, who sells Hawaiian shirts starting at $9.99 and $24.99. Analysing the results of 89 auction produced the following conclusions
* Low staring prices bring bidders into the auction early
* Low starting prices encourage bidders to accumulate sunk costs into the auction. Low starting price winners have spend more time in the auction and make more bids than low starting price losers or bidders in high starting price auctions.
Study 4 Inferring value from Traffic and Current Prices
Test subjects were asked to judge the proper value of an mocked-up eBay item (holiday package) with which they were presented. It was found that the number of bids which the items had lead to higher valuations. Study 5 Starting Low and Ending Low on eBay
This study found that for auctions where there were less bids, the starting price did have an effect on ending price. By comparing the outcome of similar items where there were misspellings in the titles, it was found that this created a barrier to auction traffic, reducing final prices Lessons from research
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fi
How to Get What You Want Every Time!By Nelson D. Berry www.subliminal-message.comYou know that YOU are the creator of all that occurs in all of your life experience, right?You create your physical life experience through your thoughts. Literally, every thought that you think gives birth to a creation. EVERY thought has creative power. The subconscious accepts whatever you pretend is real and will use it to create your outer reality. The thoughts that you think, regarding those things that you want, set into motion the creation, and eventual fulfillment of that whic
* Low staring prices bring bidders into the auction early
* Low starting prices encourage bidders to accumulate sunk costs into the auction. Low starting price winners have spend more time in the auction and make more bids than low starting price losers or bidders in high starting price auctions.
Study 4 Inferring value from Traffic and Current Prices
Test subjects were asked to judge the proper value of an mocked-up eBay item (holiday package) with which they were presented. It was found that the number of bids which the items had lead to higher valuations. Study 5 Starting Low and Ending Low on eBay
This study found that for auctions where there were less bids, the starting price did have an effect on ending price. By comparing the outcome of similar items where there were misspellings in the titles, it was found that this created a barrier to auction traffic, reducing final prices Lessons from research
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fi
The word persuasion has a reputation it doesn’t deserve. Many people tend to associate it with advertising, propaganda or downright manipulation. On the contrary, in our interactions with others persuasion is one of the most useful tools at our disposal. Used ethically, it is at the very heart of healthy interpersonal relationships.After all, let’s look at the alternatives. If we define persuasion as the act of moving someone to a course of action, think about some of the other ways to accomplish that goal. There’s coercion, bribery and threats. None of these is ethical and none can sustain the trust nece
The results of this research will not come as much of a surprise to eBayers, but it is nevertheless interesting to have analysis to back up commonly quoted conceptions. I think that the following lessons can be drawn from the paper:
* ?0.99 NR auctions work well for popular items with plenty of search traffic and lead to higher prices
* Less popular items (rare) are not suitable for this kind of auction strategy.
I think that the results of this research are most relevant to individual sellers, selling in low volumes with using simple sales strategies. When selling in large volumes, the market prices will drop if too many items are listed and it is therefore necessary to increase starting prices or use fixed price auctions to compensate. Comments on the Research
There are many factors affecting the ending prices of "eBay Online Auctions" such as starting time, ending time, seller feedback, postal rate etc. There is no indication in this paper that these factors have been taken into account.
The paper talks about auction traffic, referring to the number of bids on an item. I think that another interesting study would be to compare the number of views of an auction with starting price to establish if there is a relationship.
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