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Impact of consumer behavior on online resale price and transaction closure

Author

Listed:
  • Bhagirath

    (Amity University Noida)

  • Neetu Mittal

    (Amity University Noida)

  • Sushil Kumar

    (Polytechnic University of Catalonia)

Abstract

The consumer seller’s expected price for their old product in the resale online market is most of the time significantly higher than the potential buyer transaction price, which results in fewer chances of transaction closure. The proposed work aims to analyze the consumer seller and buyer behavior to drive a relationship among the seller expected price, transaction price, and probability of deal closure of resale product. Data of online resale platform are analyzed and used to develop machine learning models. The consumer seller expected and transaction price model results have been compared to derive the relationship with the probability of transaction closure. The change in predicted and the actual prices is judged by using statistical parameter's mean absolute percentage error (MAPE). This research can help businesses to understand customer expectations of resale price and helps customers to put right price for a high probability of the transaction.

Suggested Citation

  • Bhagirath & Neetu Mittal & Sushil Kumar, 2022. "Impact of consumer behavior on online resale price and transaction closure," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(6), pages 623-637, December.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:6:d:10.1057_s41272-022-00381-y
    DOI: 10.1057/s41272-022-00381-y
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    References listed on IDEAS

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    1. Ippolito, Pauline M, 1991. "Resale Price Maintenance: Empirical Evidence from Litigation," Journal of Law and Economics, University of Chicago Press, vol. 34(2), pages 263-294, October.
    2. Marvel, Howard P & McCafferty, Stephen, 1986. "The Political Economy of Resale Price Maintenance," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1074-1095, October.
    3. Atin Basuchoudhary & Christopher Metcalf & Kai Pommerenke & David Reiley & Christian Rojas & Marzena Rostek & James Stodder, 2008. "Price Discrimination and Resale: A Classroom Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 39(3), pages 229-244, July.
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    Cited by:

    1. Ian Yeoman, 2022. "How COVID-19 changed things and what we did about it," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(6), pages 579-580, December.

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