Explore information disclosure strategies in pre-loved luxury digital market

Abstract

ABSTRACT The pre-loved luxury market has attracted more attention from both practitioners and researchers, yet empirical research on this market remains scarce. Since information asymmetry is a bigger challenge in the pre-loved luxury digital market, it is essential to understand the effectiveness of different information disclosure strategies. This paper finds that the information disclosure effect is important yet complicated in the pre-loved luxury digital market. Not only does it depend on how much information to disclose, it also depends on what type of information to share. While providing more product images helps to sell preowned luxury products faster, providing benchmark price information may backfire. Further exploring the mechanism, we find that information disclosure influences sales also through other marketing mix. Interestingly, more product image information reduces consumers’ price sensitivity, but extra benchmark price information increases consumers’ price sensitivity. Actionable managerial implications are provided to guide sellers on leveraging information disclosure strategies in this market.