Effect Of Buyers Research Articles

Auction versus direct sale: the effect of buyers and sellers on prices

Abstract This study examines the question of selling agricultural commodities by auction or directly. Hedonic price analysis using transaction data from the sale of frozen cod in Norway shows that buyer–seller matches explain 32.4 and 13.6 per cent of the price variation in direct sales and auctions, respectively, indicating that direct sales are more informationally efficient than auctions. Meanwhile, auctions gain a price premium of 2.6 per cent over direct sales, holding other variables constant. However, a substantial increase in the use of direct sales indicates that their information efficiency is more important to sellers than the small price premium provided by auctions.

The Effect of Buyer –Sub-Supplier Strategic Consensus on Sub-Supplier Performance

This paper aims at investigating the effect of inter-organizational strategic consensus on a strategy group level between buyer and sub-supplier regarding its effect on sub-supplier performance. The authors analyze empirical connected multi-tier data (matched-triplets) within a structural equation model applying Bayesian estimation of parameters. This analysis takes into account both a competitive method consensus and consensus on objectives between supply chain actors on category group level, sub-supplier performance (regarding on-time delivery and quality) under the influence of relevant contingency factors. Results confirm a cause-effect between buyer-sub-supplier consensus on objectives on category group level and sub-supplier performance regarding quality and on-time delivery. Furthermore results indicate, that inter-organizational strategic consensus on objectives between buyer and sub-supplier on category group level fully mediates the effect of buyer-sub-supplier competitive method consensus on sub-supplier performance.

The Effects of Buyers' Attitudes Toward Supplier Diversity on Their Spending with Ethnic Minority Businesses

This study examines characteristics that may influence buyers' desire to obtain goods and services from ethnic minority enterprises using data from 277 buyers employed at large buying organizations (LPOs) in the United States and the United Kingdom (EMBs). The literature on social capital is utilized to construct hypotheses about the cognitive, structural, and relational factors that may influence decisions to purchase from minority enterprises. Following that, current discrimination theory is used to deduce how buyers' views about supplier diversity affect the effects of social capital on their buying operations with EMBs. Multiple regression research indicates that in both the United States and the United Kingdom, buyers' perceived positive social capital has a direct, substantial association with their spending with EMBs. Additionally, the findings indicate that in both nations, purchasers' attitudes toward supplier diversity act as a moderator of the connection. Interestingly, despite the fact that the United States pioneered the concept of supplier variety, our study reveals that UK LPO buyers spend more with their EMBs. This research demonstrates how LPOs' strategic corporate social responsibility initiatives may be influenced by their buyers' social relationships with EMBs and their views about supplier diversity, based on these findings.

How can suppliers increase their buyers’ CSR engagement: the role of internal and relational factors

PurposeBuyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be actively searched for by a supplier and what activities and policies of suppliers could enhance buyer CSR engagement. From the perspective of resource dependence theory, this study aims to explore how suppliers seek to achieve buyers' CSR engagement.Design/methodology/approachThe proposed model and hypotheses were tested by structural equation modeling methodology using survey data collected from 243 manufacturing and service firms in China.FindingsThe results show that instrumental CSR motives and internalization of CSR policies jointly improve buyers' dependence, which in turn increases buyers' CSR engagement. In addition, this study investigates the influence of suppliers' trust on the effect of buyers' dependence on buyers' CSR engagement and finds a negative moderating effect on the dependence–engagement relation.Practical implicationsThe findings show that suppliers can actively engage in CSR to strengthen their position and improve the buyer CSR engagement. In fact, proactive CSR policies and implementation do pay off in the long run for them.Originality/valueThis study offers a fresh perspective on the role of suppliers in improving CSR. In contrast to much of the literature that has considered buyer-initiated practices and policies, this is the first theoretical and empirical investigation into how suppliers can increase the buyer CSR engagement.

Correction to: Auction versus direct sale: the effect of buyers and sellers on prices

Correction to: Auction versus direct sale: the effect of buyers and sellers on prices

The effect of buyers’ socialization efforts on the culture of their key strategic supplier and its impact on supplier operational performance

This paper investigates if inter-organizational socialization mechanisms initiated by a buyer organization towards a strategic supplier can influence the culture within that supplier organization to ultimately improve supplier performance to the buyer. Using a quantitative sample of 279 UK companies from across a variety of industry sectors, statistical techniques were utilized to examine the effect of informal and formal socialization mechanisms on the culture of a strategic supplier as measured by their organizational practices and the subsequent supplier performance outcomes. It was found that both informal and formal socialization efforts by a buyer organization have a significant influence on the culture of the supplier organization as measured by their organizational practices. Socialization efforts by the buyer organization influence the organizational practices of the supplier to be more result-oriented, employee-centred, open, pragmatic to customer needs and market focussed. These organizational practices were found to positively influence supplier operational performance in the eyes of the buyer organization as measured by on time delivery, conformance to product specifications, flexibility to respond to changing customer needs and cost reduction initiatives. Modelling the influence of informal and formal socialization efforts by a buyer on the organizational culture of a key supply chain partner provides new insights to academics. Firstly, this work makes a significant contribution to the extant research on socialization in the supply chain literature. Secondly, it raises the importance of understanding the influence of culture on supplier operational performance. Although the study used a dyadic method to validate the cultural insights, our study only took a snapshot of culture at one point in time. Organization culture as displayed through organizational practices is a complex construct that changes over time. Therefore, to further understand the intricacies of organization culture, a longitudinal study would be useful in the future. Secondly, future studies could develop into themes such as the green supply chain and sustainability issues. Finally, our study was undertaken in the UK. It would be useful to replicate this study in a different setting, including Eastern countries. Organizations should engage early with their key supply base from a socialization perspective. The importance of joint away days, cross function teams alongside effective communication and on site visits have been fund to have a significant influence on shaping a high performance culture along the supply chain. Therefore, a buyers’ early understanding of their key supplier’s culture via these mechanisms appear critical for long-term supply chain success. Measuring supplier culture at the visible level of organizational practices removes the ethereal qualities often attributed to culture as a concept; buyers can influence supplier culture. This paper presents an empirically tested model which includes informal socialization, formal socialization, deconstructed organizational culture and supplier operational performance in a supply chain setting.

Similarities in axiomatizations: equal surplus division value and first-price auctions

We compare axiomatizations between a value for cooperative games with transferable utilities (TU games), and a rule for auctions. The equal surplus division value on the set of zero-monotonic TU games is characterized by the following: individual rationality, Pareto efficiency, and equal effect of players’ nullification on others. Meanwhile, first-price auctions, on the general preference domain, are characterized by individual rationality, envy-freeness, and weak equal effect of buyers’ nullification on others. Here, envy-freeness implies Pareto efficiency in the model of auctions. Given the agents’ general preferences in the auction model, the characteristic of a weak equal effect of buyers’ nullification on others weakens the requirement of equal effect of players’ nullification on others. Although the two models are different, the corresponding axioms in both models require conditions corresponding to each other. In particular, individual rationality requires voluntary participation of agents, Pareto efficiency (or its stronger axiom of envy-freeness in the model of auctions) requires outcomes with no waste, and (weak) equal effect of players’ (buyers’) nullification on others requires equal treatment of agents when an agent is nullified. Therefore, in terms of axiomatizations, we can similarly interpret the equal surplus division value and first-price auctions.

The effect of buyers' power on suppliers' motivations in managing their compliance mechanisms: a study of Indian apparel export firms

PurposeThe aim of this study was to investigate how Multinational Enterprises (MNEs) enforce Code of Conduct (CoC) policies, as well as how they affect suppliers' motivation to engage them in managing CoC compliance mechanisms of monitoring, enforcement and transparency in the Indian apparel industry.Design/methodology/approachA quantitative survey was conducted using face-to-face surveys. Overall, 210 usable data points were collected and analyzed by use of structural equation modeling.FindingsStudy findings highlighted that hard power strategies currently used by MNEs in the apparel Indian market were primarily coercive in nature. A clear power imbalance between MNEs and suppliers from India was evident. Results suggested that when MNEs attempted to use their powerful position to advance compliance goals, higher level of CoC monitoring was required and suppliers were only extrinsically motivated. Lack of intrinsic motivation in suppliers' resulted in under-developed suppliers' transparency mechanisms. Therefore, findings suggested that MNEs should use hard powers consciously considering the long-term and unintended consequences.Originality/valueThe paper proposes a buyer-supplier power-motivation interaction model that clarifies what MNEs can do to motivate apparel suppliers to implement CoCs successfully in the apparel supply chain. This relationship has not previously been empirically tested.

A Study on Supplier Involvement and Buyer Strategic Decisions

Purpose - In the development of new products, suppliers involvement and developing products jointly can be said to be strategic activities that utilize the lack of knowledge from external organizations. In this new product development, supplier involvement has been proven to have a positive impact on new product development performance for a long time by previous research. However, sufficient academic research has not been conducted on the influence of supplier involvement in various product strategies or sales strategies that buyers make in order to secure a competitive advantage in the market. This study argues that product strategy and sales strategy used by buyers in the development of new products will control the effect of supplier involvement on new product development performance in order to compensate the lack of these academic aspects. Research design, data, and methodology - Specifically, we selected the modularization strategy of the product as the product strategy, which is considered as an important strategy in the new product development through the preceding research, and the mass customer satisfaction strategy was chosen as the sales strategy. In order to achieve these research objectives, regression analysis was conducted using data from manufacturing productivity panel collected jointly by the Ministry of Industry, Trade and Industry and the Korea Productivity Center. Results - As a result, supplier involvement and new product development performances (development cost efficiency, customer satisfaction) were positively related. The product modularity strategy proved to have an interactive effect on the relationship between supplier involvement and new product development performances (development cost efficiency, customer satisfaction). However, it has not been confirmed that there is a statistically significant interaction effect between supplier involvement and new product development performances. Conclusions - Supplier involvement has positive relationships with NPD performance. In addition, product modularity strategies have interaction effects with supplier involvement and affect new product development performance (development cost efficiency and customer satisfaction). The results of this study are of academic significance in the case of lack of empirical studies on the effect of supplier participation on the effect of buyer 's strategy when a supplier participates and develops new products jointly.

Quality Uncertainty in Housing Markets

In this paper, I quantify the effect of buyers' uncertainty about a home's quality on its pricing and liquidity. I first develop a parsimonious model of home sale in which buyers learn about the home's quality from a walkthrough and from the home's days-on-market. Quality uncertainty distorts prices and delays trade. As time passes, buyers become pessimistic and sale prices fall. Using transaction-level data from Denver, Charlotte, and Detroit, I structurally estimate counterfactual days-on-market and sale prices for six hundred thousand homes that sold between 2005 and 2015. The costs of quality uncertainty are borne by sellers of high quality homes through mispricing, and by sellers of low quality homes through illiquidity: relative to a market in which home quality were known to buyers, high quality homes take 11 days longer to sell, and sell for 8.0% less, while low quality homes take 47 days longer to sell, and sell for 4.5% more.

TRUDA: a truthful auction mechanism with non‐uniform payment for heterogeneous spectrum access in wireless networks

Auction is a highly effective trading form for distributing resource among buyers in a market at competitive prices, and has been applied to many domains, e.g. spectrum allocation in wireless networks and the virtual machine allocation in cloud computing. Most of existing auction mechanisms based on McAfee double auction calculate the uniform clearing prices for winning buyers no matter what channel they acquired, which does not reflect the differences of buyers' personalised preferences for heterogeneous spectrums. Hence, in this paper, we propose a truthful double auction scheme, named TRUDA, which incorporates the marginal effect of buyer–seller pair into auction mechanism design and considers the case in which buyers are mutually exclusive. We show analytically that this auction mechanism guarantees the economic-robustness of the auction and has polynomial time complexity.

Caveat Venditor: The Conditional Effect of Relationship-Specific Investment on Contractual Behavior

We offer a new perspective on the effect of relationship-specific investment on contract complexity, which has broad implications because complex contracts and vertical integration are substitutes. A simple model using transaction cost economics (TCE) predicts that buyer and seller relationship-specific investments have opposite effects on contract complexity. The model also predicts the signs of biases in OLS estimates of the effect of relationship-specific investments: unobserved heterogeneity causes downward bias in the estimated difference between the effects of buyer and seller specific investment, reducing the probability of finding opposite effects. We examine these predictions using data on agreements made by Romanian firms. When accounting for unobserved heterogeneity, seller relationship-specific investment has a positive effect on contract complexity while buyer investment has a negative effect. OLS estimates do not generate this result. The unique contribution of the paper is in simultaneously implementing TCE empirically, countering the problem of unobserved heterogeneity, generating estimates of the effects of specific investment that have opposite signs on opposite sides of the agreement, and explaining patterns of bias in the OLS estimates. Additionally, regional variation in court quality affects the complexity of contracts, suggesting that even moderate amounts of legal reform can have appreciable effects.

The effect of buyers and sellers on fish market prices

This paper extends the traditional hedonic price specification to take into account the unobserved heterogeneity of sellers, buyers and seller–buyer matches. The specification is estimated using econometric techniques for non-nested panel data models on a data set of nearly 15 million transactions occurring in French wholesale fish markets over the 2002–2007 period. Results show that unobserved heterogeneity plays a significant role in price setting. For some species, its inclusion in price regressions changes the coefficients of quality-related fish characteristics. Fish characteristics are the main factors explaining price variations for many species, but time and buyer effects also play a significant role.

The effect of buyer specific-monitoring procedures on buyer control in dynamic supply chain links

Based on transaction cost analysis (TCA), resource dependency theory (RDT), and supply chain management literature, this study explores the effect of buyer-specific monitoring procedures on buyer control in industrial buyer-seller transactions, particularly in relation to how environmental uncertainty affects the buying firm's ability to exercise control over the supplier firm. The research design is based on primary data from a survey of 168 industrial buyer-seller relationships which map a broad set of dimensions of the economic transactions and structures in these business-to-business relationships. The empirical findings provide support for the hypotheses, and demonstrate that the effect of the buyer-specific monitoring procedures is positively associated with buyer control arrangements under conditions with rather modest external disturbances. This governance pattern is completely changed when business relationships face substantial environmental uncertainty. Under such conditions, the effect of buyer specific monitoring procedures on buyer control is significantly attenuated.

A Study on the Effect of Buyer’s Perception on the Long-term Business Relations in B2B industry

A Study on the Effect of Buyer’s Perception on the Long-term Business Relations in B2B industry

The effect of buyer's gender, risk‐proneness, and time remaining in an internet auction on the decision to bid or buy‐it‐now

PurposeThis paper aims to study how buyers' gender and risk proclivity, and the time remaining in an internet auction, influence whether buyers buy at fixed prices or bid.Design/methodology/approachThe study is based on a simulated internet auction. Participants choose between bidding in an auction and buying at a fixed price. Data are analyzed using a logistic regression model. The results from the laboratory study are validated with data from eBay.com.FindingsFemale participants’ odds of choosing the buy‐it‐now (BIN) option are higher than their odds of bidding in an auction (BID) when less time is remaining in an auction. Contrarily, for males, when less time is remaining, BID is preferred over BIN. Unexpectedly, when substantial time is remaining, males have greater odds of choosing BIN over BID except when they are high risk‐seekers. Simulation results correspond closely with eBay data.Practical implicationsThe paper shows that not only do gender differences manifest themselves in ways that are to be expected, such as females being more risk‐averse than males, but that competitiveness among males may lead to an uncharacteristic choice to buy at fixed prices if substantial time is remaining in an auction. Furthermore, the latent competitive nature of females is revealed by secondary research. Finally, the research validates laboratory results with field data to practice methodological triangulation.Originality/valueA comparison of determinants of bidding versus buying at fixed prices is missing from the extant literature. The present study fills this gap.

Buyer Countervailing Power: A Survey of the Theory and Experimental Evidence

The rise of mega-retailers and industry concentration levels has recently generated an interest among economists and antitrust policymakers in the effects of buyer countervailing power. There exists a considerable theoretical literature offering a range of sources of powerful buyers' ability to extract price discounts. The explanations that have been tested experimentally have all found laboratory support. This paper surveys the theoretical literature on countervailing power, emphasizing experimental tests where available. The increasing policy relevance of this topic and the blossoming of theoretical models contrasted with the dearth of experimental tests point to fruitful directions for research.

The Effects of Buyer and Product Traits with Seller Reputation on Price Premiums in E-Auction

This paper examines the effects of buyer and product traits along with seller reputation on price premiums. Three personal traits studied are based on buyers' shopping pattern (analytical vs. impulsive buyers), propensity to trust (trusting vs. skeptical buyers), and attitude toward auction (competitive vs. noncompetitive buyers). Product characteristics — price and homogeneity of quality — are also considered. Data analysis in this study shows that while impulsive buyers consistently pay high premiums, analytical buyers pay greatly different premiums depending on sellers' reputations. However, buyers' propensity to trust and attitudes toward auctions do not significantly contribute to the difference of price premiums when information about sellers' reputations is explicitly provided. Even competitive buyers do not pay higher premiums to sellers of bad reputation for just being a winning bidder. In regard to product characteristics, buyers pay higher premiums for expensive products or products with various options. However, buyers do not pay high premiums for an expensive product with very homogeneous quality.

Effect of Buyer and Seller Experience on Buy It Now Pricing

ABSTRACT Although auctions have been around for centuries, online auctions are still a relatively new phenomenon. This paper examines the phenomenon of online auctions, specifically on a pricing option known as “Buy It Now.” With this option, a buyer can purchase merchandise immediately at a stated price and truncate the auction process. Auction items sold with a Buy It Now price tend to be at a higher price than the high bid price for an identical item sold through an ascending-bid auction. In addition, Buy It Now prices tend to attract risk averse bidders while high bidders of ascending-bid auctions tend to be less risk averse or risk neutral bidders. On the other hand, we found more experienced sellers sell their items with a Buy It Now price while less experienced sellers sell their items through an ascending-bid process. Thus, experience and risk are factors in choosing a Buy It Now price for the seller and buyer.

Sales: Effect of Buyer's Insolvency on Seller's Duty to Deliver or Tender Goods

Sales: Effect of Buyer's Insolvency on Seller's Duty to Deliver or Tender Goods