Herding behavior in C2C e-commerce: Empirical investigation in China

Author

Hui-ying, Li ; Qiang, Ye ; Sharma, Gajendra

fYear

2010

fDate

24-26 Nov. 2010

Firstpage

33

Lastpage

39

Abstract

The objective of this study is to identify the phenomenon of herding behavior in customers´ online purchasing decision. We attempt to explore the effect of historical transaction volume, ratings and price premium on the customers´ purchasing decision and their final transaction volume. Based on the panel data collected from Taobao, the largest C2C e-Commerce website in China, linear regression analysis was performed to test the significance of the effects. This study revealed that historical transaction volume, positive ratings and neutral ratings had a significant positive effect on the consumer online purchasing decision, but negative ratings and price premium with a negative effect. We also applied entropy theory to validate the existence of herding behavior from the perspective of information theory, and with a salient result.

Keywords

Internet; consumer behaviour; electronic commerce; purchasing; regression analysis; C2C e-commerce; customer online purchasing; entropy theory; herding behavior; historical transaction volume; information theory; linear regression analysis; neutral ratings; positive rating; price premium; Entropy; Information theory; Internet; Linear regression; Marketing and sales; Portable media players; Software; C2C e-commerce; entropy; herding behavior; historical transaction volume;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering (ICMSE), 2010 International Conference on

Conference_Location

Melbourne, VIC

ISSN

2155-1847

Print_ISBN

978-1-4244-8116-3

Type

conf

DOI

10.1109/ICMSE.2010.5719781

Filename

5719781