Seller's Perspective Research Articles

Perspective taking does not moderate the price precision effect, but indirectly affects counteroffers to asking prices

Precise asking-prices (e.g., $249,800), compared with round ones (e.g., $250,000), are stronger anchors, leading buyers to counter closer to the asking-price. This ‘precision effect’ is driven by (i) higher evaluation of the seller's competence, and (ii) buyers using a finer-grained numerical scale when the asking-price is precise compared with round. But are buyers more susceptible to precise anchors, the more they take the seller's perspective? If so, what are the underlying mechanisms leading to this increased susceptibility? We examine the potential moderating role of trait (Experiment 1) and manipulated (Experiment 2) perspective-taking on the price precision effect and its underlying mechanisms. We test the prediction that the more buyers take the seller's perspective, the more they will evaluate a precise-opening seller as competent, which in turn will increase buyers' susceptibility to precise prices (H1). We further test two competing predictions regarding the moderating role (H2a) of perspective-taking versus lack thereof (H2b) on buyers' use of a finer-grained numerical scale when countering a precise asking-price. Results revealed that precise asking-prices lead to counteroffers closer to the asking-price. This price precision effect was driven by the scale granularity, but not the perception of seller's competence mechanism. Further, perspective-taking did not moderate the price precision effect. Exploratory analyses revealed that perspective-taking leads to higher perception of seller's competence, which in turn leads to counteroffers that are closer to the asking-price. Overall, both price precision and perspective-taking shape counteroffers (but not in an interaction), making the two factors important in negotiation processes.

The tax-smart approach to buying and selling an orthodontic practice in this evolving landscape

With the new norms in dentistry, more orthodontists than ever before are considering selling their practice to a Dental Support Organization (DSO) or to younger dentists interested in starting a practice of their own. These transactions often include a sale and purchase of the related dental office building. These new norms not only include the difficulties and opportunities presented by COVID, but also new challenges in practice management, with an increasingly complex tax code and other financial matters. We will be examining these issues from both the buyer's and seller's perspective and focusing our attention on the dental practice, as well as the dental office building transaction.

The impact of platform flexibility and controls on platform attractiveness: an empirical study from the seller's perspective

PurposeThe e-business platform has become a major driver for economic growth and development. The economic success of an e-marketplace greatly depends on the extent to which buyers and sellers are attracted to enter and actively participate in the e-business platform. Existing literature lacks empirical examination of factors influencing e-business platform attractiveness (EBPA) from a seller's perspective and understudies the interplay between technical and managerial considerations.Design/methodology/approachBased on the literature on network economy, modular systems theory, control theory and social exchange theory, the paper proposed that platform flexibility and platform control (PC) would affect EBPA through both direct and interaction effects. From a survey of platform sellers, the paper explored the influencing mechanisms of EBPA using hierarchical regression and fuzzy-set qualitative comparative analysis (fsQCA) to understand the statistical associations and the set relations of the conjunctions and conditions.FindingsThe paper found that platform flexibility (PF), process control and clan control (CC) positively affected EBPA. In addition, the interaction between PF and process control demonstrated a substitution effect on EBPA, and the interaction between PF and CC demonstrated a complementary effect on EBPA. Also, the authors found that the interaction between process control and CC demonstrated a complementary effect on EBPA. fsQCA provided the configurations of causal recipes associated with EBPA.Originality/valueFrom a seller's perspective, the paper presents both theoretical explanation and empirical evidence for how design factors (e.g. PF) and governance factors (e.g. process control and CC) may interplay to influence EBPA.

Validating the Sequential Logic of Quality Constructs in Seller-customer Business Relationships – Antecedents, Mediator and Outcomes

Validating the Sequential Logic of Quality Constructs in Seller-customer Business Relationships – Antecedents, Mediator and Outcomes

Determinants of long term orientation in seller e-retailer relationship: a seller perspective in the Indian E-commerce

Determinants of long term orientation in seller e-retailer relationship: a seller perspective in the Indian E-commerce

Online Product Reviews: Is a Finer-Grained Rating Scheme Superior to a Coarser One?

Product review platforms in online marketplaces differ with respect to the granularity of product quality information they provide. While some platforms provide a single overall rating for product quality (also referred to as the single-dimensional rating scheme), others provide a separate rating for each individual quality attribute (also referred to as the multidimensional rating scheme). The multidimensional rating scheme is superior to the single-dimensional rating scheme, ceteris paribus, in reducing consumers’ uncertainty about product quality and value. However, we show that, when sellers respond to product ratings by adjusting their prices, compared to the single-dimensional rating scheme, the multidimensional rating scheme does not always benefit consumers, nor does it necessarily benefit sellers or society. The uncertainty associated with quality attribute rating and the extent of differentiation between competing products determines whether a finer-grained multidimensional rating scheme is superior to a coarser-grained single-dimensional rating scheme from the consumer, seller, and social planner perspectives. The main driver of the results is that more (less) granular and less (more) uncertain information exposes (hides) underlying differentiation, or a lack thereof, between competing products, which, in turn, alters upstream price competition in the presence of heterogeneous consumer preferences. The results demonstrate that focusing on the information transfer aspect of rating schemes provides only a partial understanding of the true impacts of rating schemes.

Action and Social Alignment Constituents of Collaboration in B2B Relationships: Buyer and Seller Perspectives

Purpose To test a research model consisting of hypothesized relationships within and between the domains of action and social alignment based on buyer and seller perspectives in B2B relationships. Design/Methodology/Approach Based on two cross-industrial samples of 218 buyer B2B relationships and 208 seller B2B relationships in Taiwan. Findings Findings relate to the dual facets of the domain of membership theory. Cooperation represents more likely intangible and subjective interests of alignment, and coordination represents more likely tangible and objective actions of alignment, in buyer and seller B2B relationships. Research limitations/Implications Validates a research model of action and social alignment in the context of buyer and seller B2B relationships. Contributes to comparing buyer and seller perspectives in relation to existing theory and previous studies on quality constructs in B2B relationships. Offers suggestions for further research. Managerial Implications Practitioners in B2B settings need to focus on joint actions as well as joint interests, and vice versa, as the economic and non-economic satisfaction of a business relationship complement each other. Originality/Value Validates the research model of action and social alignment in the context of buyer and seller B2B relationships. Provides multiple contributions to existing theory and previous studies of relationship quality based on buyer and seller perspectives in B2B settings.

Game theory analysis on credit risk assessment in E-commerce

With the development of network technology and social economy, e-commerce has been widely utilized around the world, while the E-commerce credit has become one of the most important issues. The credit risk in E-commerce is not only the result of game between different sellers, but also the result between online traders and managers. From the perspective of different sellers with same products or services, this paper analyzes and discusses the formation of credit risk in E-commerce based on the game theory, and presents some suggestions for future application of E-commerce credit. In order to reduce the loss caused by E-commerce credit risk, the government should play a macro-control role or participate in the game process as a participant to influence the game result. The government can guide enterprises’ game activities through legal and economic levers such as legislation, taxation, to make the results approached to the Pareto optimal solution, and the utility of the entire society will be increased.

Framing Static and Dynamic Time-Periods through the Teleological Lens in the Implementation Process of Enterprise Resource Planning

ABSTRACT Purpose Enterprise Resource Planning (ERP) is a technological tool which improves and eases B to B communication and reinforces business relationships as well as business-to-business (B to B) marketing. Based on a teleological lens in B to B relationships between ERP sellers and ERP buyers, the research objective of this study is to frame static and dynamic time-frames in the ERP implementation process in B to B markets. The aim is to shed light on the consideration of time-periods (i.e. past, present and future) as either tatic or dynamic in the implementation process of complex service solutions, such as ERP, in a B to B marketing setting. Design/methodology/approach This study is conducted with respect to Spanish companies focusing on the first main pre-implementation, first main implementation and first main post-implementation process of ERP software solutions in B to B markets. This study embraces a multi-method design consisting of the four phases. It enables data triangulation through in-depth structured interviews in a follow-up study, so as to validate the results. Findings Reports static and dynamic time-periods through a teleological lens in the implementation process of ERP in B to B market of the Spanish healthcare industry. This study indicates that more than half of the ERP buyers were not entirely satisfied, after finalizing the ERP implementation process. Subsequently, less than half of them received only a software solution and the rest considered they had received merely a somewhat adapted software solution. Furthermore, only one out of ten confirmed that the software solution obtained was a fully adapted solution beyond the ERP buyers’ expectations and truly taking into account their needs. This study also reveals that there are still some ERP implementation processes indicating that the seller does not take into account the needs of the buyer at all. Altogether, the findings indicate that the B to B marketing process is often not satisfactory. It is widely known that the ERP is a standardized tool that requires adaptation of the ERP software solution to the buyer’ in B to B markets. Research limitations/implications The combination of static and dynamic considerations of time with formative, rationalist and transformative teleological lenses outline and distinguish between various strategies for handling the ERP pre-implementation process, the ERP implementation process and the ERP post-implementation process in B to B marketing. We contend that another core research implication in B to B marketing, taking into consideration static and dynamic time-periods through the teleological lens, addresses the need to match the ERP seller perspective with that of the ERP buyer. A mismatch may turn out unsatisfactorily for both the ERP seller and the ERP buyer. It is therefore crucial in the B to B marketing strategy that there be a balance between flexibility and adaptations of the ERP seller to the expectations and experiences of the ERP buyer in the ERP implementation processes in B to B markets. Managerial implications Offers opportunities for companies to apply B to B marketing strategies through visualizing in advance the cost and risk associated with an ERP implementation. Furthermore, this study enables the framing of other complex service implementation processes such as the ERP software solution. A core managerial implication of the results reported in this study to B to B marketing is the need to distinguish between static and dynamic, using the time-periods in the ERP implementation. The ERP seller needs to align its strategy of B to B marketing with its consequences from the ERP pre- and post-implementation processes. Another core managerial implication is that the static and formative use of time entails less costs initially. It enables the ERP seller to obtain benefits within a short time-frame. However, the ERP seller may have to face a dissatisfied ERP buyer at the end of the implementation process. Subsequently, the risk of the relationship disruption is high, so that this strategy of B to B marketing has a short-time orientation, based on targeting many ERP buyers and devoting less effort to each of them (by the ERP seller). In the case of the dynamic and rationalist use of time-periods, the ERP seller has chosen a strategy of B to B marketing with the ERP buyer that can turn out satisfactorily. However, the initial costs are higher than when the static consideration of time is used because the ERP seller needs more resources, expertise and skills to visualize the end of the implementation process taking into account the actual requirements. Originality/value Frames static and dynamic time-periods which influence the B to B marketing strategy used in the implementation process of ERP in the healthcare industry. The teleological lens applied in this study contributes to contextualizing as marketing B to B tool the ERP implementation process as being either past-based (formative), present-based (transformative) or future-based (rationalist).

A seller perspective on economic and non-economic satisfaction as precursors to formalisation, specific investments and dependence in business relationships

PurposeSeen from the seller's point of view, this study examines economic and non-economic satisfaction as distinct conceptual variables, and tests how the constructs relate to each other and to the business transactional cost variables of formalisation, specific investments and dependence.Design/methodology/approachData was collected from 213 key informants from Norwegian companies involved in business-to-business marketing. Structural equation modelling was used to test the posited hypotheses.FindingsThe findings show that sellers' economic satisfaction exerts a positive influence on non-economic satisfaction and on formalisation, while its posited influence on specific investments was not found to be significant. Formalisation was, however, not significantly influenced by seller non-economic satisfaction. Specific investment was positively influenced by seller non-economic satisfaction. The influence of formalisation on specific investments and dependence was significant. Specific investments were also found to be positively influenced by dependence.Research limitations/implicationsThe study reveals the importance of assessing both economic and non-economic satisfaction in trying to understand sellers' behaviour in business-to-business markets.Practical implicationsThe findings show the need for managers to ensure economic satisfaction, as its affects non-economic satisfaction.Originality/valueThis study contributes to a better understanding of satisfaction in business-to-business exchange relationships and its relationship with transactional cost constructs based on a seller's perspective.

Indifference Pricing Under Sahara Utility

We study utility indifference pricing of untradeable assets in incomplete markets using a symmetric asymptotic hyperbolic absolute risk aversion (SAHARA) utility function, both from the buyer's and seller's perspective. The use of the SAHARA utility function allows us to tackle the ``short call'' problem, which power and exponential utility functions are unable to solve. While no closed-form solutions are available for the indifference prices, we are able to derive some pricing bounds. Furthermore, we rely on the dynamic programming approach to solve the associated utility maximization problem, which leads to a two-dimension HJB equation. A complex algorithm discussed in [Ma&Forsyth2016] is consequently adopted to numerically solve the HJB equation. We determine utility indifference prices for options written on the untradeable underlying assets and some insurance contracts.

Antecedents and postcedents of satisfaction in seller-business relationships: positive and negative alter egos

Purpose This study explores a seller’s perspective in business relationships to validate whether the findings reported in previous studies based on buyer business relationships apply to seller business relationships. The purpose of this study is to test whether satisfaction functions as a connector between positive antecedents (trust and commitment) and negative postcedents (opportunism and conflict) in a business-to-business (B2B) relationship, based on a seller perspective. Design/methodology/approach A descriptive research design was applied and data was collected from Norwegian companies from the database of LinkedIn’s Sales Navigator. Respondents (Sales or Marketing Managers/Directors or Key Account Managers) were asked to identify one main business customer with whom they had interacted in the past year. A total of 213 responses could be used for data analysis. In addition, the measurement and structural models were assessed. Findings Trust was established as a positive alter ego of opportunism and opportunism as a negative alter ego of trust. The commitment was also determined to be a positive alter ego of conflict, with conflict being a negative alter ego of commitment. Furthermore, it was proven that alter egos are not opposites, but facets of antecedents and postcedents in relation to a connector, satisfaction. Research limitations/implications The tested model endorses the hypothesised relationships between trust, commitment, satisfaction, opportunism and conflict in Norwegian B2B relationships. Satisfaction is linked to its two antecedents and its outcomes and the hypothesised relationship between opportunism and conflict is also endorsed from a seller’s perspective in B2B relationships. Practical implications The findings can assist the B2B industry to understand how trust and commitment foster satisfaction, how satisfaction influences opportunism and conflict, and how opportunism relates to conflict in a seller-business relationship. Originality/value No previous study has focussed on relationship marketing in B2B relationships from a seller’s perspective to establish whether satisfaction functions as a connector between trust and commitment and opportunism and conflict.

The effects of quantity discounts on supply chain performance: Looking through the Bullwhip lens

Quantity discounts are a common pricing mechanism to stimulate large orders. We explore their impact on the dynamic behaviour of production and distribution systems by studying key operational and economic metrics. In a three-echelon supply chain, we observe that the discount generally increases the Bullwhip Effect, which especially harms the manufacturer. The discount also reduces the retailer’s purchase costs, but increases its inventory- and capacity-related costs. A key trade-off thus emerges, which manifests itself through a U-shaped relationship between the total cost and the discount acceptance parameter. In the light of this trade-off, we discuss how key factors should affect the retailer’s willingness to pursue the discount. We observe that managers that need to deal with tougher environmental conditions, such as high demand uncertainty and long lead times, should be less reluctant to increase orders up to the discount quantity. We also discuss in detail other valuable insights for professionals, both from the perspective of sellers and buyers.

Impact of Platform Owner’s Entry on Third-Party Stores

One important decision faced by the owners of online marketplaces is whether they should enter the market and sell products directly to customers. In this study, we provide data-driven insights to managers by empirically investigating the impact of a platform owner’s entry on the demand of third-party stores and their potential reactions using transaction level data from a large e-commerce platform. Contrary to previous studies in mobile app platforms, our study shows that the demand of competing third-party stores decreases with the entry of the platform, especially for large third-party stores. We further show that the demand reduction is significant only in the offline channel and the reduction results from third-party stores’ defensive strategy to divert their offline customers away from the platform (i.e., disintermediation). Our findings indicate that platforms should carefully evaluate the nature of their markets before entering the market to compete with complementors, because they may lead third-party sellers to disintermediate from the platform. On the other hand, from the perspective of third-party sellers, disintermediation might be an overreaction to the entry of the platform, because their online demand is not significantly affected by platform entry based on our analyses.

How Do You Manage Online Delivery Package Waste?

Packaging is a critical element in the online product delivery process. Even the best products will not attract customers if they are delivered to end users with damage. Many companies use mixed protective packaging, often, overpackaging, attempting to ensure logistics effectiveness and increase customer satisfaction. This practice does not fully consider resources consumption in producing packaging or environmental damage from excess packaging disposal. Packaging waste is a growing problem for firms that practice mixed protective packaging. Managers need to act to rationalize the type and amount of packaging materials they adopt. Product delivery is a complex decision that involves diverse managerial perspectives and may cause tensions for cross-functional organizational performance. Major supply chain parties including product sellers, online platforms, logistics carriers, and consumers each share concerns, which are unique to their situation. This article proposes an online product delivery scorecard that performs as measurement tool to evaluate product packaging from an integrated perspective of product sellers, online platforms, logistic carriers, and consumers using dynamic metrics. We challenge the traditional assumption of the positive relationship between packaging and customer satisfaction. Excessive packaging may also hurt customer satisfaction. Managerial considerations are also discussed to provide solutions for managing online delivery package waste.

Trust and commitment as mediators between economic and non-economic satisfaction in business relationships: a sales perspective

Purpose This paper aims to test trust and commitment as mediators between economic and non-economic satisfaction in seller business relationships in contrast to previous studies on buyer business relationships. Design/methodology/approach Based on a cross-industry sample of Norwegian companies with sales or marketing managers/directors or key account managers. Key informants were selected to participate who adhered to specific criteria, such as their designations should be sales or marketing managers/directors or key account managers. Findings Trust and commitment mediate between economic and non-economic satisfaction in seller business relationships in line with what has been previously tested and retested across contexts and through time in buyer business relationships. Research limitations/implications This study helps in establishing an extended foundation to assess the structural properties between economic and non-economic satisfaction, as well as trust and commitment, in business relationships based on seller and or buyer perspectives. Practical implications The tested seller business relationship research model provides a corporate foundation for assessing the seller perspective of business relationships. It also provides a corporate foundation for combining the seller perspective with that of the customer perspective. Originality/value To the best of the authors’ knowledge, it is the first study based on seller business relationships that validates the research model reported in multiple previous studies based on buyer business relationships.

Strategy-Proof and Non-Wasteful Multi-Unit Auction via Social Network

Auctions via social network, pioneered by Li et al. (2017), have been attracting considerable attention in the literature of mechanism design for auctions. However, no known mechanism has satisfied strategy-proofness, non-deficit, non-wastefulness, and individual rationality for the multi-unit unit-demand auction, except for some naïve ones. In this paper, we first propose a mechanism that satisfies all the above properties. We then make a comprehensive comparison with two naïve mechanisms, showing that the proposed mechanism dominates them in social surplus, seller's revenue, and incentive of buyers for truth-telling. We also analyze the characteristics of the social surplus and the revenue achieved by the proposed mechanism, including the constant approximability of the worst-case efficiency loss and the complexity of optimizing revenue from the seller's perspective.

Reducing information asymmetry in the auctioning of non-perishable experience goods: The case of online wine auctions

We highlight the importance of reducing the perceived risk associated with information asymmetry for experience goods. We analyse a major online non-perishable experience good, wine, from the seller's perspective. The mechanism for lowering information asymmetry is the verification service offered by the auctioneer. By focusing on unsold items/lots, the wine and auction characteristics affecting the probability of a sale are identified. Results show that the verification of the wine's provenance increases the probability of sale by 5.7 percent and leads to an expected increase of 5.1 percent in the auction price. When both effects are combined, the increase in the expected revenue of the seller is 7.3 percent. We test and find no evidence of selection bias. Given the heterogeneity in wine prices, a quantile regression analysis shows how the results differ for high-priced wines compared to lower priced wines. Results highlight how the mechanisms to lower the degree of information asymmetry work both in attracting bidders to online auctions and encouraging bidders to submit higher bids.

Precursors and outcomes of satisfaction in seller-customer business relationships: a sales perspective

Do the same precursors and outcomes apply in business relationships when the relationships are seen from the seller's perspective as opposed to the customer's perspective? Many studies on relationships, particularly those on business relationships, deal mainly with the buyer's perspective. In this study, we take the seller's perspective and test whether the precursors (trust and commitment) and outcomes (specific assets, opportunism and formalisation) of satisfaction, which are tested and retested across multiple contexts and through time to buyer business relationships, also applies to seller business relationships. Data was gathered from a cross-industry sample of Norwegian companies. The questionnaires returned from 213 key sales informants were completed satisfactorily and were useable in this study, generating a valid response rate of 40.7%. Follow-up interviews with sales executives revealed practical consequences of satisfaction, specific assets, opportunism and formalisation. The lesson learned from the feedback is that acting in a way that builds trust benefits both seller and customer.

Precursors and Outcomes of Satisfaction in Seller-Customer Business Relationships: A Sales Perspective

Do the same precursors and outcomes apply in business relationships when the relationships are seen from the seller's perspective as opposed to the customer's perspective? Many studies on relationships, particularly those on business relationships, deal mainly with the buyer's perspective. In this study, we take the seller's perspective and test whether the precursors (trust and commitment) and outcomes (specific assets, opportunism and formalisation) of satisfaction, which are tested and retested across multiple contexts and through time to buyer business relationships, also applies to seller business relationships. Data was gathered from a cross-industry sample of Norwegian companies. The questionnaires returned from 213 key sales informants were completed satisfactorily and were useable in this study, generating a valid response rate of 40.7%. Follow-up interviews with sales executives revealed practical consequences of satisfaction, specific assets, opportunism and formalisation. The lesson learned from the feedback is that acting in a way that builds trust benefits both seller and customer.