2014
DOI: 10.1504/ijnvo.2014.065076
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E-marketing under the adverse selection environment: model and case study

Abstract: Information asymmetry in the e-commerce market causes an adverse selection phenomenon ('lemons' problem) that has a negative impact on e-marketing. Based on the classic adverse selection model, this paper set up e-marketing models. The models fully took into account the qualitative preference of e-consumers and the role of quality intermediaries under adverse selection environments. Actual data from Taobao serves as a case study to analyse the characteristics of adverse selection. The results show that reputat… Show more

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Cited by 4 publications
(2 citation statements)
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“…The promotional messages sent out to online shoppers should be unique to ensure fresh and appropriate differences from competitors to boost trust and develop online connections. E-commerce websites were utilized by a significant portion of internet users just for product investigation rather than actual product purchases [44]. While businesses tend to capitalize on the ease of use provided by online environments and their attraction to customers, they must create goods and services that guarantee extra applicable benefits [45].…”
Section: Segmentationmentioning
confidence: 99%
“…The promotional messages sent out to online shoppers should be unique to ensure fresh and appropriate differences from competitors to boost trust and develop online connections. E-commerce websites were utilized by a significant portion of internet users just for product investigation rather than actual product purchases [44]. While businesses tend to capitalize on the ease of use provided by online environments and their attraction to customers, they must create goods and services that guarantee extra applicable benefits [45].…”
Section: Segmentationmentioning
confidence: 99%
“…The promotional messages distributed to online shoppers should be original to ensure differentiation from competitors, new, and suitable to enhance trust and build online relationships. Pan [79] found that many internet users used e-commerce platforms to research products and not buy them due to quality information and prices. While companies tend to commercialize the convenience granted by online environments and their appeal to consumers, they fail to provide products and services that guarantee additional valuable benefits [75].…”
Section: Marketing Content Segmentationmentioning
confidence: 99%