Effects of Pre-sales Posted Price Channel on Sequential B2B Dutch Flower Auctions

Huong May Truong, Wolfgang Ketter, Alok Gupta, Eric Van Heck

Research output: Contribution to conferencePaper

Abstract

Multichannel sales strategies have become common in consumer markets due to the usage of advanced information technologies. However, the interactions between multichannel prices in Business-to-Business (B2B) markets are largely underexplored. This paper investigates the impact of a pre-sales posted price channel on the performance of the century-old sequential B2B Dutch flower auctions. The pre-sales channel is conducted online ahead of the auctions. Only a specified fraction of each flower lot can be sold through the pre-sales. Given this limit, growers can decide on their participation, available quantity and selling price. Flowers that are not sold during the pre-sales are added to the auctions. Our analysis of over 2 million flower lots traded in 2015 reveals a higher total revenue for lots that are offered in the pre-sales as compared to lots that are not. The result holds true even for lots where no actual sales occurred in the pre-sales channel.

Original languageEnglish (US)
StatePublished - Jan 1 2018
Event38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017 - Seoul, Korea, Republic of
Duration: Dec 10 2017Dec 13 2017

Other

Other38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
CountryKorea, Republic of
CitySeoul
Period12/10/1712/13/17

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Keywords

  • Auctions
  • Dutch Flower Auctions
  • E-commerce
  • Information Signal
  • Multichannel
  • Sequential B2B Auctions
  • Smart Markets

Cite this

Truong, H. M., Ketter, W., Gupta, A., & Van Heck, E. (2018). Effects of Pre-sales Posted Price Channel on Sequential B2B Dutch Flower Auctions. Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of.