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The effect of online C2C markets on new-product-purchasing behavior: an empirical analysis of Japanese selling apps

Author

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  • Shinichi Yamaguchi

    (Center for Global Communications, International University of Japan)

Abstract

This study quantitatively investigated the effect of purchases and sales on selling apps on new-product-purchase behavior, based on questionnaire data from 20,000 consumers. To sufficiently address endogeneity, individual consumer preferences were incorporated into the model and a GMM (generalized method of moments) model employing instrumental variables was utilized. The results showed substitution effects where an increase in the value of purchases on selling apps led to a decrease in the value of new-product purchases for three categories: “hair products cosmetics, and fragrances,” “consumer electronics, smartphones,” and “toys and hobbies”. These elasticities were − 0.089 (hair products cosmetics, and fragrances), − 0.114 (consumer electronics, smartphones), and − 0.183 (toys and hobbies), respectively. For sales on selling app, however, complementary effects were found for all categories where an increase in the value of selling app sales led to an increase in the value of new-product purchases. These elasticities were 0.058 (fashion), 0.104 (sports and leisure products), 0.212 (hair products, cosmetics, and fragrances), 0.124 (consumer electronics, smartphones, etc.), 0.126 (entertainment products), and 0.155 (toys and hobbies, etc.), respectively. Furthermore, Subjective consumer assessment showed that the number of people who thought the value of new-product purchases would increase due to selling app use was higher than those who thought it would decrease. These findings imply that companies that develop products, which can be easily transacted, searched for, and accepted on selling apps can increase sales using selling apps in marketing strategies such as information transmission, branding, and customer loyalty.

Suggested Citation

  • Shinichi Yamaguchi, 2021. "The effect of online C2C markets on new-product-purchasing behavior: an empirical analysis of Japanese selling apps," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:1:d:10.1007_s43546-020-00022-9
    DOI: 10.1007/s43546-020-00022-9
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    Cited by:

    1. Reza Aghlmand & Mohammad Gheibi & Amir Takhtravan & Zahra Kian, 2022. "Implementation of green marketing frameworks based on conceptual system designing by integration of PESTLE, classical Delphi and MCDM modeling," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.
    2. Shinichi Yamaguchi & Hirohide Sakaguchi & Kotaro Iyanaga & Hidetaka Oshima & Tatsuo Tanaka, 2023. "The impact of licensed and unlicensed free goods: an empirical analysis of music, video, and book industries in Japan," SN Business & Economics, Springer, vol. 3(3), pages 1-22, March.

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    More about this item

    Keywords

    C2C markets; Selling App; Second-hand market; E-commerce; Empirical analysis;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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