Multi-access Technologies and Electronic Auctions

European Management Journal (2009) 27, 47– 63 journal homepage: www.elsevier.com/locate/emj The impact of multi-access technologies on consumer electronic auctions: A comparison of markets in China and the Netherlands ShengYun Yang, Eric van Heck * Rotterdam School of Management, Erasmus University, Department of Decision and Information Sciences, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands KEYWORDS Summary An investigation of the pervasive impact of multi-access technologies, i.e. the Electronic auctions; internet, wireless data, wired and wireless voice, and interactive TV, on consumer elec- Multi-access tronic auctions was carried out in the Dutch market by some researchers. This article technologies; extends the analytic generalizability of their research findings through a replication study Maturity level; in the emerging markets of China. By comparing the empirical research findings, we reveal Exchange process; that there is no significant difference in the impacts of multi-access technologies on con- Stakeholders; sumer electronic auctions within dissimilar contexts; as long as both the business and the Customer perceived technologies are prevalent. This affirms the argument that the use of more sophisticated value multi-access technologies has positive effects on the maturity level of exchange processes and stakeholders interactions in consumer electronic auctions, thereby leading to an increase in the expected success of the auctions. Ó 2008 Elsevier Ltd. All rights reserved. Introduction can however be further accelerated by using other technol- Consumer electronic auctions, such as eBay, are something ogies beyond the internet. Additional information and com- novel but not unfamiliar to many people. Internet technol- munication technologies may provide customers with more ogies have contributed to the rapid development of engaging services and exchange environments. eBay has al- electronic auctions. Pinker et al. (2003) characterized the ready enabled direct instant communication between buy- ways in which internet technologies have changed the con- ers and sellers by adopting a voice application, Skype. duct of auctions, including reduced transaction costs, Skype is a software, based on peer-to-peer technology, that accessibility, managing complexity, information gathering, lets people make free calls to anyone else on Skype. In and time element. The diffusion of electronic auctions eBay, sellers can have Skype buttons on their listings, which tells buyers that these sellers are able to be reached by Sky- * Corresponding author. pe. The remarkable benefit of using Skype in eBay is an in- E-mail address: evanheck@rsm.nl (E. van Heck). crease in the instant communication between buyers and 0263-2373/$ - see front matter Ó 2008 Elsevier Ltd. All rights reserved. doi:10.1016/j.emj.2008.07.001

48 S. Yang, E. van Heck sellers. And thus, the buyers’ and sellers’ satisfaction with impact of multi-access technologies. By contrast, the cus- both the exchange and eBay will grow. Eventually, eBay tomer pool in the Netherlands is relatively stable and does may retain and attract more customers, enlarge their mar- not have as significant a potential as in China. And thus, auc- ket share, and make more profits. tioneers in the Netherlands may place more emphasis on eBay’s example reflects the argument of De Ruiter and customer retention when assessing the effect of multi-ac- Van Heck (2004) that the rapid emergence of new access cess technologies. Due to dissimilar motivations, the re- technologies (e.g. wireless and voice technologies) can rem- search findings from these two contexts may also differ. edy the disadvantages (e.g. immobility) of ‘conventional’ Belcher (2006) claims that currently China’s E-commerce internet technology, promising all stakeholders (i.e. buyers, is still in its infancy due to the lack of a safe and efficient sellers, and auctioneers) in consumer electronic auctions to online payment system for credit card transactions as well benefit from the application of those access technologies. as poor logistics and distribution networks. The inefficient They conducted a multi-case study of five consumer elec- payment system may compel Chinese auctioneers to take tronic auctions in the Netherlands in 2003 to determine more responsibilities to insure the safety and satisfaction the impact of multi-access technologies on consumer elec- of the exchanges between buyers and sellers. Thus auction- tronic auctions. Their research findings demonstrated that eers in China may hold special attitudes towards the adop- the application of multi-access technologies in consumer tion of multi-access technologies in terms of payment. electronic auctions could have positive effects on the ex- The logistical problem is tied to geographical circum- change processes, interactive communication and the suc- stances. The geographic size of China (9,600,000 km2) is cess of auctions. much larger than the Netherlands (41,526 km2), and some However, this research focused on the Western-European districts, such as small towns in the north-west in China, market. It is unclear whether the findings in the Netherlands are very difficult to access due to special terrain or poor are also applicable in other markets. The dissimilar contexts infrastructure. Hence, auctioneers in China may be more may cause remarkably divergent opinions towards the appli- concerned about how to improve logistics than the auction- cation of multi-access technologies in consumer electronic eers in the Netherlands. auctions. Therefore, replication studies are required to test Finally, national cultures (Hofstede, 1983) that manifest the generalizibility of their findings. In our replication themselves from superficial to deep, in symbols, heroes, rit- study, we selected China to test the current doctrine due uals, and values, are not easily changed and embedded in to the notable divergence between China and the Nether- every sphere of a society, including business management. lands in many facets. Considering the impact of technolo- Hofstede (1993) employed five bipolar dimensions as illus- gies on electronic markets, we identify three main factors trated in Table 1, i.e. power distance, individualism, mascu- (i.e. technology adoption, development of E-commerce, linity, uncertainty avoidance, and long-term orientation, to and national culture) that may yield different results. These describe cultural differences between nations. He argued factors are summarized in Table 1. that the position of a country on these dimensions indicates According to the data in Table 1, it can be seen that the way a society operates, including its management pro- although internet diffusion was rapid in both countries from cesses and the kind of theories applicable to its manage- 2000 to 2007, the number of internet users in the Nether- ment. Consequently, it can be implied that auctioneers in lands is already the majority of the population (88.4%) while two cultures probably have different emphases in their busi- in China internet users are still minorities (12.3%). The ness strategies. For example, based on the long-term orien- internet adoption situation in these two countries is evi- tation in China but relatively shorter term orientation in the dently different. This confronts the auctioneers in these Netherlands, it can be presumed that Chinese auctioneers two countries with completely different business environ- are likely to give more emphases on the enhancement of ments. Given China’s massive population and a push to get the long-term relationship among buyers, sellers, and them- broadband access in more households (Belcher, 2006), the selves for better businesses. country will eventually have the most internet users in the As a result of the differences between the two contexts world. In turn, auctioneers in China embrace a huge poten- of China and the Netherlands, the auctioneers in these two tial customer pool. And hence, they may emphasize the countries may hold dissimilar perceptions about the applica- attraction of new customers when considering the potential tion of access technologies in consumer electronic auctions. Table 1 Major dissimilarities in China (CN) and the Netherlands (NL) Factors CN NL Technology adoption/internet Usersa Year 2000: 1.7% Year 2000: 24.1% (% Of population) Year 2007: 12.3% Year 2007: 88.4% Development of E-commerce Infant Mature Culture dimensions Hofstede (1993) Power distance High Low Individualism Low High Masculinity Medium Low Uncertainty avoidance Medium Medium Long-term orientation High Medium a <http://www.internetworldstats.com/eu/nl.htm>; <http://www.internetworldstats.com/asia/cn.htm>.

The impact of multi-access technologies on consumer electronic auctions 49 Thus we are inspired to study the research question: ‘ To The term ‘electronic auctions’ in this study refers to auc- what extent does the influence of multi-access technolo- tions which have a Web auction at least, so the internet is gies on consumer electronic auctions differ between two regarded as the foundation and a minimum requirement of countries with divergent contexts?’ The research question an electronic auction and all the other access technologies will be investigated by doing a replication study of the pre- will be added to the internet. Therefore, the internet is vious one done by De Ruiter and Van Heck (2004) but in Chi- identified as Level 0. At Level 1, due to the combination nese consumer electronic auctions, and then, comparing with wireless data technology, instant communication and the results of the two studies. Three sub research questions information exchange are enabled, and then the temporal (SQ) are further specified in order to adequately investigate and spatial restrictions of access to an electronic auction the answer to the main research question. Afterwards, we at Level 0 can be removed. Hence, this combination of ac- will compare the results of both investigations so as to gen- cess technologies is one level higher than the internet. At eralize more conclusive findings. Level 2, the voice technology offers more ‘personal’ communication with a higher level of richness, complexity, SQ1: How (dis)similarly do multi-access technologies and completeness between the participants, so it is ranked influence the exchange processes of electronic auctions as one level higher than wireless data technology. At Level in China and the Netherlands? 3, which is the highest level in the research, interactive TV SQ2: How (dis)similarly do multi-access technologies is involved. This technology enables viewers to interact with influence the stakeholders of electronic auctions in the television set in ways other than simply controlling the China and the Netherlands? channel and the volume, and handling videotapes. There- SQ3: What are the impacts of multi-access technologies fore, the internet combined with interactive TV is regarded on the (expected) success of electronic auctions per- as the highest level in the ranking. ceived by Chinese and Dutch auctioneers? Literature review Exchange processes of electronic auctions In the previous research, De Ruiter and Van Heck (2004) fo- The series of exchange processes studied by De Ruiter and cused on the impact of multi-access technology sophistica- Van Heck (2004) was based on the model of exchange pro- tion on the expected success of consumer electronic cesses identified by Kambil and van Heck (2002) (Fig. 1). auctions through two intervening variables, maturity level These eleven exchange processes exist in either tradi- of exchange processes and communication between stake- tional or electronic markets. Information about items, pay- holders. They proposed that the maturity level of exchange ment and rules are exchanged through the processes, and processes and the communication between stakeholders thus, the processes create value for buyers and sellers and will be increased and enhanced along with an increase in ensure the success of exchanges between buyers and sell- the sophistication level of multi-access technologies. In turn ers. Table 2 summarizes the descriptions of each specific the improvements of the exchange processes and communi- exchange process. cation will lead to more visiting and transactions on the auc- Kambil and van Heck (2002) classified the exchange pro- tion platform, and therefore, higher success of the cesses into two main categories, i.e. basic trade processes electronic auction could be expected. In the following pas- and trade context processes. Basic trade processes are re- sages, we will review those variables that are crucial to lated to any trade of goods or services while trade context understand the research. However, concerning that this is processes can enhance the trust between buyers and sellers a replication study and the definition of each variable in this and standardize the exchange process. For instance, regula- study is inherited from the previous research, instead of tion processes require a framework of laws and rules to sig- simply repeating the literature review, we will focus on sup- nal a transaction as legitimate and conforming to a set of plementing the original explanations of the variables to pro- market rules and social principles; influence processes in- vide a more comprehensive research background. clude mechanisms to enforce obligations or penalties to reduce opportunism risks; and dispute resolution processes Sophistication of multi-access technologies provide a mechanism to resolve disputes among parties. De Ruiter and Van Heck (2004) stated that the basic trade There are four groups of (multi-)access technologies in- processes exist within a broader context of support pro- volved and categorized into four sophistication levels in cesses that include dispute resolution and other mecha- the research. The sophistication level refers to the capabil- nisms to ensure that the parties involved in the trading ity of the technologies. The higher the level of the multi-ac- process will meet their obligations. The process of commu- cess technologies are, the more capabilities can be added to nications and computing cannot be classified into either ba- the ‘conventional’ electronic auctions which currently only sic trade processes or trade context processes but exists apply the internet (De Ruiter and Van Heck, 2004). throughout the exchange processes. It plays an important role in integrating all the other processes into a specific Level 0: The internet. market for specific buyers and sellers. In addition, the Level 1: The internet combined with wireless data implementation of new facilities for communications and technology. computing also aims to enrich the media, speed up the Level 2: The internet combined with wired and wireless transfer, improve the ease of use, lower the infrastructure voice technology. costs, and enhance the coordination capabilities within Level 3: The internet combined with interactive TV. and across trade processes.

50 S. Yang, E. van Heck Figure 1 Model of exchange processes Kambil and van Heck (2002). Table 2 Description of exchange processes Kambil and van Heck (2002) Process Description 1. Search Information gathering and evaluation process undertaken by buyers and sellers 2. Pricing Negotiating and discovering a purchase/sale price for a product 3. Logistics Actual delivery of goods from the seller to buyer 4. Payment and settlement The terms and methods of payment permitted to ensure the settlement of payments 5. Authentication Verify the quality and authenticity of the product and the trading parties offered 6. Product representation How the product attributes are specified to the buyer or other third parties 7. Regulation Framework of laws and rules to signal a transaction as legitimate and conforming to a set of market rules and social principles 8. Risk management Insures transactions and provides information to help the buyer and seller deal with price, delivery, theft, and other risks 9. Influence structures and processes Mechanisms to enforce obligations or penalties to reduce opportunism risks 10. Dispute resolution Resolving disputes among parties Maturity level of exchange processes It is crucial to be mindful of the relationships with stakeholders when auctioneers introduce new technologies ‘Maturity level’ describes the performance characteristics in their electronic auctions, because relationships and of an exchange process. For example, with regard to the emerging technologies are interdependent (Jap, 2001). product representation process, the maturity level specifies The technologies can fulfil the communication needs of how effectively a product’s attributes can be described to the stakeholders, especially buyers and sellers in elec- buyers. At some maturity level, only a textual description tronic auctions. Only when customers start using the tech- of the product is implemented, while at another maturity nologies in auctions, can they realize the advantages in level, an image can also be included. In the research, there exchange processes brought by those access technologies. are five successive maturity levels for each exchange pro- This will in turn yield the use of these technologies in con- cess (see Appendix) in line with the previous research. A sumer electronic auctions more often. As a result, the dif- higher ‘maturity level’ of an exchange process indicates fusion of technology use in electronic auctions can be that there are more abilities to perform this process. accelerated. On the other hand, when technologies lead The improved exchange processes can reduce the chance to more interactive communication between buyers and of an unhappy purchasing or selling experience of buyers or sellers, it may change the relationship between them in sellers in electronic auctions and increase the satisfaction the exchange processes. For example, when the communi- of buyers or sellers. This is especially important in first-time cation between sellers and buyers becomes extremely buying/selling experiences, because often having a good ini- swift, sellers may become more active in approaching po- tial experience, buyers and sellers are more likely to do tential buyers instead of buyers actively searching for a business in electronic auctions once again. Consequently, product during the ‘search’ stage. Buyers might therefore the auctioneers can make more profit from the increased become more passive than active during the communica- transaction volume. tion with sellers in this process, and vice versa. This is similar to the argument of Jap (2001), noting that the firm’s Stakeholder relationship and communication choice of technology may fundamentally change how buyers and suppliers coordinate their activities and interac- The main stakeholders in an electronic auction include buy- tions. Therefore, she suggested that the relationship ers, sellers, and the auctioneer. The relationships formed context should be a strategic consideration when making among these three stakeholders in the research involve buy- investments in new technologies. In conclusions, both the ers and sellers, buyers and other buyers, buyers and the auc- advantages and disadvantages of a technology in regard tioneer, and sellers and the auctioneer (De Ruiter and Van to the stakeholders’ relationship should be carefully Heck, 2004). evaluated.

The impact of multi-access technologies on consumer electronic auctions 51 Expected success of electronic auctions Conceptual framework and research methodology Moreover, Kambil and van Heck (2002) developed a process/stakeholder benefit framework for auctions, which Consistent with the literature survey and the research of De can be regarded as a fundamental mechanism for manag- Ruiter and Van Heck (2004), the conceptual model (Fig. 2) is ers to systematically evaluate market-making initiatives. established and four hypotheses are posited. What is remarkable about this framework is that it illus- De Ruiter and Van Heck (2004) contended that the trates the importance of stakeholders when designing elec- exchange processes could be further improved via data-ori- tronic auctions. In another words, while managers engage ented applications more than via voice-oriented applica- in identifying opportunities for new technologies among tions. In particular, they found that voice applications are the different exchange processes, they are also reminded not perceived to ameliorate basic trade processes at all. to evaluate the overall net profits for each stakeholder. This leads to the first hypothesis (H1, see Table 3). They fur- Fairchild et al. (2004) also argued that regarding the high ther counter-argued that due to the availability of more failure of electronic markets, market players must under- personal and spontaneous communication via more sophisti- stand imminently that the economic effects are experi- cated multi-access technologies, higher interactivity be- enced by both the electronic market itself and the tween stakeholders will occur. Additionally, although sellers and buyers. Therefore, it is crucial to take stake- more mature exchange processes may bring some disadvan- holders into consideration when designing an electronic tages to auctioneers, such as an increase in costs, auction- auction. eers can expect to make more income as a result of a higher Kambil and van Heck (2002) stated that a successful elec- level of auction platform usage and a higher level of trans- tronic market should create value for all the stakeholders action volume. Hence, the cost disadvantage can be over- (i.e. buyers, sellers, and the auctioneer). It can also be come by the increase in income. Similarly, more added that the value for all the stakeholders must be max- interactive communication may benefit buyers and sellers imized to achieve outstanding performance of an electronic with more convenient communication and efficient ex- auction. Thus as De Ruiter and Van Heck (2004) argued if an change. Consequently, auctioneers can generate more in- electronic auction wants to succeed, the expected impact, come from the increased transactions. Accordingly, the resulting from more mature exchange processes and more other three corresponding hypotheses (H2, H3, and H4) are interactive communication in electronic auctions must be put forth (Table 3). positive for all the stakeholders. Otherwise, the implemen- Referring to the aforementioned analysis of various con- tation of these multi-access technologies will most likely texts in China and the Netherlands, we craft the main prop- not bring success to the electronic auctions. They discerned osition (P1) ‘The local differences lead to different uses and that the possible advantages derived from more mature ex- impacts of multi-access technologies on consumer elec- change processes include lower costs, more convenience, tronic auctions.’ In this replication study, we will test the more security and trust, improved product presentation, aforementioned four hypotheses in China. By comparing enhanced personalization and customization, and early the results in China and the Netherlands, we will be able mover advantages to all stakeholders. to reveal the similarity or dissimilarity between the two markets, and then validate the proposition (P1) as well as answer the three sub research questions. Eventually, the answer to the main research question ‘To what extent does the influence of multi-access technologies on consumer electronic auctions differ between two countries with divergent contexts?’ will be disclosed based on the findings of the sub research questions. Research methods and techniques We followed the same research technique, semi-structured Figure 2 Conceptual model. Adapted from De Ruiter and Van interview, to collect the primary data from the auctioneers. Heck (2004). We interviewed one individual member or a group of man- Table 3 Research hypotheses H1 The use of more sophisticated, data-oriented multi-access technologies in electronic auctions will lead to a higher maturity level of the exchange processes H2 The use of more sophisticated multi-access technologies in electronic auctions will lead to more interactive communication between the stakeholders H3 More mature exchange processes will lead to an increase in the expected success of electronic auctions H4 More interactive communication between the stakeholders will lead to an increased expected success of electronic auctions

52 S. Yang, E. van Heck agement team members in each selected electronic auc- Selection of electronic auctions tion. Each interview lasted for about one hour and con- tained three parts. In the first part, we collected data The criteria of selecting electronic auctions refer to the cri- regarding the impacts of multi-access technologies on the teria of De Ruiter and Van Heck (2004). One criterion is that maturity level of exchange processes by using the same the electronic auctions should have a website, as the inter- scorecard as in the previous research. This scorecard, orig- net forms the foundation of all the possible access technol- inally developed by Paarlberg (2001), presents a description ogy combination. Another criterion is that they must be of the maturity levels of each exchange process (Appendix). consumer electronic auctions, either B2C or C2C. Referring Each exchange process has five successive steps. The elec- to the argument of De Ruiter and Van Heck (2004), multi-ac- tronic auctions receive one point for each step. The first cess technologies could have a vast impact on consumer step stands for no possibility to perform a specific process, markets. And the other criterion is that the owner of the while the fifth step stands for the full extent to which an ex- electronic auctions must be a third party. It means that change process can be performed. Each step indicates more the selected electronic auctions are neither a seller nor a abilities to perform a certain process. The electronic auc- buyer. They play the role of an auctioneer. tions can however only score on successive steps. This Table 4 summarizes the basic information about those means that if a certain exchange process of an electronic five electronic auctions from which the empirical data was auction can be performed on step 1, 2 and 4, but not on step gathered; following the table is a detailed presentation of 3, the auction receives only two points. Statistical analysis the auctions (in alphabetical order). is applied in this section. In the study of Dutch electronic auctions, the authors studied the impact of the multi-access DangDang Bao technologies on exchange processes through the average scores based on the scores given by the selected electronic DangDang Bao started in February, 2006, and is currently auctions. To compare the results in two markets, we will focusing on C2C auctions. Like other electronic auctions in also investigate the average scores based on the scores gi- this research, it does not restrict the products being sold, ven by the selected Chinese electronic auctions. and consumers can find almost every sort of product there. In the second part of the interview, our goal was to Compared to the other electronic auctions, DangDang Bao is measure changes in interactive communication between very young. It identified itself at the initial stage. At pres- stakeholders using different multi-access technologies. ent, DangDang Bao offers members free services, its finan- The managers of the auctions were required to comment cial needs are fully provided by its holding company, on the potential effects of using each multi-access technol- DangDang, which is one of the earliest electronic markets ogy on the four types of stakeholder relationships (i.e. in China and specialized in products such as Chinese books, buyer and sellers, buyers and buyers, buyers and the auc- music, videos, games, software, and pre-paid internet tioneer, and sellers and the auctioneer), respectively. With cards. regard to the changes in communication due to access technologies, three possibilities were taken into consideration: deterioration of the interactive communication be- eBay EachNet tween the stakeholders, no change, and an improvement of the interactive communication between the stakehold- eBay EachNet began in March 2002 after eBay invested 30 ers. The managers’ comments were recorded and tran- million USD in EachNet in China. eBay EachNet focuses on scribed. Based on the transcriptions, we analyzed what if doing C2C online auctions, but B2C auctions are also gaining any were the changes resulting from each combination of in popularity, as many companies treat electronic auctions access technologies compared to the internet alone. It as an additional, more contemporary way to sell their prod- should however be mentioned that there is a major differ- ucts and meet customers. Revenues of eBay EachNet are ence between the previous research in the Netherlands and mainly generated from listing fees as is the case with other ours. In the previous study, the wireless data technology is eBay auctions worldwide. It is currently the second largest divided into specific technologies, i.e. GSM, GPRS and electronic auction in China. UMTS. Despite this, it has been found that actually auctioneers do not often focus on the detailed technologies, they PaiPai usually think about the main technologies and their func- tionality. Therefore, in this research, the specific technol- PaiPai was established on September 12, 2005. Its holding ogies have been eliminated. In anther words, we do not company is the first and the largest developer of instant distinguish between specific operational details within a communication software, Tencent, in China. PaiPai is devel- primary technology type. oping dramatically and has gained over 20,000,000 regis- In the last part of the interview, we asked the opinions of tered users. PaiPai is currently ranked the third largest auctioneers about the possible benefits or sacrifices to each consumer electronic auction in China. The distinct service stakeholder in the new context of using multi-access tech- provided by PaiPai is its so-called Communicate to Com- nologies, i.e. increased interaction between stakeholders merce, framework – a pun on the already common term and maturity level of exchange processes. The data ob- C2C. By taking advantage of Tencent instant communication tained from this part demonstrates whether all the stake- software (like MSN), all the steps occurring in an electronic holders can benefit from using more sophisticated multi- auction are integrated into one platform, sellers and buyers access technologies, and in turn, whether greater success can benefit from the convenience, time savings and instant of an electronic auction can be realized. communication it offers. PaiPai has not generated any rev-

The impact of multi-access technologies on consumer electronic auctions 53 Table 4 Summary of five consumer electronic auctions in China Electronic auction Logo Website DangDang Bao <www.dangdang.com> eBay EachNet <www.eachnet.com> PaiPai <www.paipai.com> TaoBao <www.taobao.com> 6688 <www.6688.com> enue yet, the financial support is from its holding company, sell solutions to SMEs and help them with e-business. So Tencent. PaiPai defines its current status as being at the according to 6688, it must be clarified that 6688 does have investment stage, and gaining customers is the first priority, an electronic auction platform, but is not a dedicated elec- so free service is a necessary strategy now. tronic auction company. The 6688 auction is free of charge for general services, but offers some added value services Taobao for a fee. Those optional added value services are mainly about more interactive communication in exchange pro- TaoBao was founded on May 10, 2003 by Alibaba, and aims cesses and between stakeholders. Revenues of the 6688 to become the largest consumer electronic auction in the auction are generated from these added value services. world. Currently, TaoBao is mainly focusing on C2C electronic auctions whilst B2C electronic auctions seem to Analysis of empirical data in China be increasing. Since its foundation, it has successfully at- tracted 66,000,000 registered members and become the As this paper underscores the comparison between the re- largest electronic auction in China with its completely free search findings in China and the Netherlands and the way services. At present, TaoBao does not generate any revenue of analyses in both of the researches are the same, we do due to its free services. This is the strategy of TaoBao to ob- not intend to go into details of the research results in China tain as many members as possible in order to enlarge its but provide an overview of the hypotheses validation. market share and reach critical mass. The financial support Table 5 summarizes the four hypotheses that are tested is from its holding company, Alibaba. in China, regarding the influence of using multi-access technologies on consumer electronic auctions, the validation re- 6688 sults, and the alternative hypothesis, if applicable. According to Table 5, it can be seen that except the first The 6688 electronic auction platform is owned by Beijing hypothesis, all the hypotheses are accepted. In other words, 6688 electronic commerce Ltd. The strategy of this com- the replication study in China confirms that the use of more pany is to find and remove all the obstacles in Chinese elec- sophisticated multi-access technologies would lead to more tronic markets, enabling every exchange process through interaction between buyers and sellers; and the increased ‘e’, and accelerating the pace of the development of e- maturity level of exchange processes and enhanced interac- commerce in China. However, according to 6688, they do tivity between buyers and sellers would increase the ex- not want to be simply identified as an electronic auction, pected success of consumer electronic auctions. because it is not their core business, they would rather iden- With regard to the first hypothesis, given the empirical tify themselves as an ‘enabler’ of e-business for SMEs. They analysis, it is perceived that multi-access technologies im-

54 S. Yang, E. van Heck Table 5 Research hypotheses validation results Tested hypotheses Validation Alternative hypotheses H1 The use of more sophisticated, data-oriented multi- Rejected The use of more sophisticated, communication access technologies in electronic auctions will lead oriented multi-access technologies in electronic to a higher maturity level of the exchange processes auctions will lead to a higher maturity level of the exchange processes H2 The use of more sophisticated multi-access Accepted N.A technologies in electronic auctions will lead to more interactive communication between the stakeholders H3 More mature exchange processes will lead to an Accepted N.A increase in the expected success of electronic auctions H4 More interactive communication between the Accepted N.A stakeholders will lead to an increased expected success of electronic auctions pact all the exchange processes, although they differ in im- continue the comparison with the impact on the success pact extent across the various exchange processes. This is of electronic auctions. In turn, we will be able to answer reasonable, as different multi-access technologies have dif- the three sub research questions. ferent characteristics and advantages. The empirical data analyses show that more sophisticated multi-access tech- Impact of multi-access technologies on nologies will lead to much greater positive impacts on the exchange processes maturity levels of overall exchange processes and trade context processes than on basic trade processes. Given that The underlying difference between the two studies lies in the basic trade processes are more mature than trade context differing emphasis of access technologies. While De Ruiter processes, outstanding improvements of electronic auctions and Van Heck (2004) thought that ‘data-oriented’ should be are expected to be generated from the improvement of an additional condition of multi-access technologies to fulfil trade context processes through enhancement from better the requirement of improving exchange processes, we have communication. Moreover, as access technologies mainly noted that ‘communication oriented’ should be the more de- function in communication, and communication is pervasive sired additional condition. The comparison of these argu- in every exchange process, it can be argued that the abili- ments could help to answer the first sub research question ties of access technologies to perform in communications ‘How (dis)similarly do multi-access technologies influence throughout the exchange processes are becoming more the exchange processes of electronic auctions in China and prominent. Therefore, the first hypothesis has not reflected the Netherlands?’ When we review the empirical data in both the impacts of multi-access technologies on exchange pro- studies, some possible explanations can be revealed. cesses precisely due to a lack of attention paid to the com- In line with the data shown in Table 6, the prime differ- munication requirement in the exchange processes. ence between the results of the two studies is within the Therefore, hypothesis (H1) should be rejected. Nonetheless, voice application. In the research of Dutch electronic auc- an alternative hypothesis has been proposed. tions, the auctioneers did not perceive any impact of voice application on basic trade processes; with the least effect Comparison of electronic auctions between of voice application on the remaining trade context and China and the Netherlands overall exchange processes among all the technologies. Chi- nese auctioneers, on the other hand, believe strongly in the Given the analysis of the empirical data collected in China, importance of voice applications. Chinese auctioneers ex- we now compare the research findings in both China and the pected voice applications to not only have effects on basic Netherlands. We commence the comparison with the im- trade processes but also have remarkable impacts on trade pact of using multi-access technologies on the exchange context processes and overall processes. There are two pos- processes and interaction between stakeholders, and then, sible reasons for these differences. Table 6 Average changes (in %) of scores for exchange processes compared to the internet in China and the Netherlands Internet Internet and Internet and wired Internet and wireless data and wireless voice interactive TV CN (%) NL (%) CN (%) NL (%) CN (%) NL (%) CN (%) NL (%) Basic trade processes 0.0 0.0 3.7 24.3 2.5 0.0 6.0 28.2 Trade context processes 0.0 0.0 5.0 25.2 9.4 9.7 12.0 37.1 Overall exchange processes 0.0 0.0 4.3 24.23 5.8 4.9 8.8 31.9

The impact of multi-access technologies on consumer electronic auctions 55 First, this difference may be due to the different time most from this application, because the technologies make periods of data collection and the rapid development of the communication about the exchange between two par- the technologies. For instance, Skype was just founded in ties more efficient and convenient. For instance, a buyer 2003. This technology is now not only widely used but also and a seller can ask and reply to a question about the prod- adopted in electronic auctions. Therefore, the interviewees uct by composing and sending SMS instead of email. They of the electronic auctions in the previous research could not can accomplish this information exchange at anytime any- have had so profound recognition of the value of voice com- where, without the internet. munication as the interviewees involved in this research in Wired and wireless voice technologies and interactive TV 2006. Thus, Dutch auctioneers did not think that voice appli- are perceived to be able to enable more personal and direct cation could bring any added value to basic trade processes. interactions between stakeholders, which allows the sharing Another reason for the discrepancy in results is that ver- of more diverse forms of content, e.g. voice, text, facial bal communication has been carefully considered during the expressions, static and dynamic images. This can contribute design of exchange processes by the auctioneers in China; immensely to the communication between buyers and sell- these considerations include pricing and dispute resolution, ers, and buyers or sellers between auctioneers. Particularly, due to circumstances, negotiation about the price instead auctioneers anticipate that the implementation of those of bidding, and culture, verbal communication is always technologies in customer service is promising. preferred to solve problems. This concern for good commu- More sophisticated multi-access techniques are expected nication can be understood from two perspectives. One is in to greatly enhance the interactions between stakeholders accordance with the argument of Kambil and van Heck due to the increased richness of information that can be (2002) that the ‘communications and computing’ process shared. Hence, the second hypothesis is accepted in both underlies all exchange processes. Then it can be deduced of the studies. that every improvement in communication in these ex- Furthermore, both of the studies indicate a difference in change processes could lead to better performance of the impact across the multi-access technologies due to differ- processes. The other reason can be seen as being related ent needs of stakeholders. Nevertheless, the different im- to the national culture. Ulijn et al. (2005) stated that the pacts of multi-access technologies on the stakeholders’ Chinese sense of harmony in interpersonal relationships relationships are divergent in China and the Netherlands. plays an important role in problem solving. Verbal commu- With regards to wireless data technologies, although nication, as well as interactive TV, could increase the sense both Chinese and Dutch auctioneers admitted that the com- of harmony due to the availability of expressions of emo- munication between buyers and sellers would benefit most tion, and therefore, not only verbal communication but also from this application, Dutch auctioneers showed careful interactive TV have been closely considered by the auction- concern about practical implementation. They argued that eers in trade context processes, such as dispute resolution. the increased interactivity between buyers and sellers Additionally, the impact of multi-access technologies on may prompt the two parties to do exchanges without the the maturity level of exchange processes is generally per- interference of the auctioneer. Since auctioneers make a ceived less by Chinese electronic auction companies than profit from every successful exchange transaction on the Dutch ones. This is due to the same reason described above, auction platform, auctioneers were afraid of loosing control the different time periods of the studies. Since the perfor- of the transaction between buyers and sellers. Therefore, mance of exchange processes based on the internet are more Dutch auctioneers mentioned that they probably would mature than before, the potential space of improvement is not implement wireless data technologies to enhance the getting less. The expectation of radical improvements has communication between these two parties. The same argu- been replaced with one of incremental improvement. ment was also found in the investigation of voice application and interactive TV. Interestingly, this was not a serious con- Impact of multi-access technologies on interactive cern for Chinese auctioneers. They believed that the cus- communication tomers treat exchange security as the most important feature of a transaction, as such they trust the auction com- To answer the second sub research question ‘How (dis)sim- panies far more than an individual whom they do not know. ilarly do multi-access technologies influence the stakehold- Thus Chinese auction customers would not prefer to accom- ers of electronic auctions in China and the Netherlands?’, plish an exchange without the auctioneers even in order to we compare the summary of the effects of multi-access save a little of money. Especially when it comes to the issue technologies on the level of communication between the of payment, customers do notice that auctioneers work with stakeholders in China and the Netherlands. Table 7 outlines a specialized third party, e.g. PayPal, to assist in the ex- the research findings of each kind of stakeholder relation- change process. Thus they will most likely prefer to do an ship in both studies. exchange with the control of auctioneers. Overall, both Chinese and Dutch auctioneers agreed that Moreover, Chinese and Dutch auctioneers hold divergent all these multi-access technologies will bring more interac- attitudes towards the effect of impersonal communication tivity between stakeholders as they provide alternative between buyers and buyers enabled by voice application methods to communicate. Wireless data technologies have and interactive TV. Dutch auctioneers do not think that been identified as a very important application in communi- impersonal and direct interactivity will provide any added cation between stakeholders, since they enable the instant value to the communication between buyers and buyers communication. Customers are not restricted to share the while Chinese auctioneers do take into consideration inter- information via email and do not need to wait for a response action improvements. Chinese auctioneers argued that much for a long time. Buyers and sellers are expected to benefit fun and freedom during the communication will be gener-

56 Table 7 (Expected) effects of multi-access technologies on the level of interactive communication between the stakeholders in China and the Netherlands Communication Wireless data Wired and wireless voice Interactive TV between CN a NLb CN NL CN NL Buyers and More convenient in Exchange information Increased efficiency to Increased personal More interactive Allow to exchange sellers various exchange more instantly than communicate about and direct interaction. applications are allowed, personal information processes. More using email. Good for the product and Make the exchanges lead to more accurate to settle down more instant interaction. exchanges. People are details of exchanges more efficiently information exchange. exchange details, Customers are motivated to initial Increased interactivity due resulting in less fraud motivated to bid or the communication to increased contents of and other problem sell and communicate communication Buyers and Enable more instant Exchange information More free chatting and Not necessarily More fun and freedom are Not necessarily Buyers communication more instantly than group chatting among provides added value allowed during chatting provides added value between community using email. People community members to a community or a members who know are motivated to who know each other forum each other initial the communication Buyers and A new way for Useful for facilitating Enable voice Useful for facilitating Enable face-to-face Interesting application auctioneer auctioneers to spread a ‘live helpdesk’ or helpdesk, increased a ‘live helpdesk’ or customer service. in such as help desk. information or news to ‘chat sessions with the level of customer ‘chat sessions with the More personal buyers and for buyers auctioneer’. An service. Especially auctioneer’. interaction to report problem to alternative way for good when buyers are Especially good to auctioneers auctioneers to initiate in urgent situation or solve some specific the communication having the perplexing problem or issue with buyers problems Sellers and A new way for Useful for facilitating Enable voice Useful for facilitating Enable face-to-face Interesting application auctioneer auctioneers to spread a ‘live helpdesk’ or helpdesk, increased a ‘live helpdesk’ or customer service in such as help desk. information or news to ‘chat sessions with the level of customer ‘chat sessions with the More personal sellers and for sellers auctioneer’. An service. Especially auctioneer’. interaction to report problem to alternative way for good when sellers are Especially good to auctioneers auctioneers to initiate in urgent situation or solve some specific the communication having the perplexing problem or issue with sellers. problems. Total An alternative way to Enable instant Enable more efficient Increased interactivity Most efficient and Have highest impact effect join e-auctions. More communication and personal due to more person- impersonal due to providing a instant between communication interaction. Make communication. More completely new way communication. But stakeholders, between all the exchange and problem friendly communication of communication and S. Yang, E. van Heck limited effect due to especially valuable for stakeholders. solving more atmosphere will be the most personal simple form of buyers and sellers Customer service can efficiently. Limited enabled, lead to more interaction. Limited contents be improved effect on buyers and trust between effect on buyers and buyers stakeholders buyers a CN: China. b NL: The Netherlands.

The impact of multi-access technologies on consumer electronic auctions 57 ated from using voice applications and interactive TV, which benefit from these investments in the long-term due to is especially favourable between buyers and buyers, e.g. a gradually increased transactions and customer satisfaction. community forum, where people do not only share online ex- With regard to security and protection, Dutch auction- change experiences but also make friends and look for fun. eers did not agree that buyers and sellers would directly This dissimilarity can be ascribed to two reasons. One is benefit from more or better security, resulting from more again the different time period of the empirical studies. mature exchange processes, though they probably would Nowadays, online chatting and video chatting are more and perceive slightly more security when the auctioneer an- more popular among young people for fun. The popularity nounces that the security level on the auction platform of YouTube, a website allowing people to share videos and has been improved. Chinese auctioneers argued that cus- give comments on the videos, all over the world is a good tomers would definitely directly benefit from safer pay- example of how important young people find having fun on- ments, fewer violations, more protection of personal line. Currently, the majority of customers on electronic auc- information and fewer risks in electronic auctions due to tions are young people. Thus Chinese auctioneers are very more mature exchange processes. This was treated as an concerned about entertainment during the communication essential aspect to be improved when developing services between customers. In addition, since many electronic auc- in consumer electronic auctions by Chinese auctioneers. tions in China are completely free and are not expected to They further emphasized that auctioneers should also make make money in the coming years, they are fighting more explicit efforts in maintaining the security level, as once for customers instead of revenues. As such the consideration there is an accident, the consequences and influences could of a potential huge investment versus limited profit is prob- be much more sever than before. ably underrated by the interviewees of the selected auc- This dissimilar position may imply two concerns. One is tions. As long as there is a way to attract more people to the particularly high need for trust of Chinese customers. the auction platform, auctioneers would like to seize it. This In the interviews, Chinese auctioneers mentioned over and reflects one of the reasons why we expected to have dissim- over about the importance of security, as it is what custom- ilar research findings in China and the Netherlands, namely, ers are most concerned about and it insures the customer’s different cultures. As discussed, China’s culture underlines perception of trust towards online exchanges. As electronic long-term oriented relationship. In turn, Chinese consumer auctions are virtual, customers do not see the other party electronic auctioneers are more willing to sacrifice the and the product, they will never be encouraged to do online short-term benefits in order to gain the long-term profits. exchange if they do not perceive security and trust. Although trust is also required by Dutch customers, it is not as much of a concern as with Chinese customers. As Impact of multi-access technologies on expected noted earlier, Dutch customers may be more confident in success doing online exchanges due to the strong support and protection of laws while Chinese customers may be more care- The answer to the last sub research question ‘What are the ful due to the comparatively immature and decentralized impacts of multi-access technologies on the (expected) suc- laws. Moreover, with the notably increased number of par- cess of electronic auctions perceived by Chinese and Dutch ticipants in electronic auctions in recent years, the possibil- auctioneers?’ is examined from two perspectives, the ex- ity of online fraud and criminality is also growing. pected (dis)advantages due to more mature exchange pro- Therefore, compared to the time when Dutch auctioneers cesses and more interactive communication between were interviewed, Chinese auctioneers may be more aware stakeholders. In turn the comparison of the empirical re- of the security challenges in consumer electronic auctions. search findings in China and the Netherlands correspond to The expected (dis)advantages due to more interactive these two facets as well. communication were examined from several facets. Chinese Several online exchange characteristics, including cost, and Dutch auctioneers held similar positions on most of the convenience, security, trust, product representation, and facets. They both felt that stakeholders would share more customization, are investigated to conclude the expected information through either a single or multiple communica- advantages or disadvantages derived from more mature tion methods, subsequently, they would communicate more exchange processes. Chinese and Dutch auctioneers’ expec- frequently and spontaneously, especially without the con- tations are surprisingly congruous despite a slight inconsis- strains of space and time. Additionally, buyers and sellers tency on the topic of security. may enjoy more fun during the interactivity and visit the All the auctioneers asserted that buyers and sellers can auction platform more often. Consequently, the electronic benefit from monetary and non-monetary cost (i.e. time) auction can attract more customers and increase the savings, more convenient, automated, and friendly transac- chance to make a profit from increased number of success- tional procedures, higher level of auction security, more ful transactions. trust in the other parties and the exchanges, ameliorated The disparate beliefs pertain to the recognition of cus- product representation, and enhanced personalized services tomer loyalty due to enhanced interactivity between stake- that come with more mature exchange processes. holders. Dutch auctioneers expected that customers will get Along with the more mature exchange processes, the more bonded with the auction platform, as usually they number of successful transactions and higher efficiency in want to belong to a group or community. Whereas, Chinese transactions will be realized, and thus the cost per transac- auctioneers were not optimistic about this expectation. tion will diminish. Auctioneers did realize that they actually They argued that customers could also be willing to join di- should invest to achieve more mature exchange processes verse communities or buyers would like to compare the instead of saving cost directly. They believe that they will prices of the same product on several auction platforms.

58 S. Yang, E. van Heck The possible reason regarding this issue is the specialty of (2006) that when there are plenty of opportunities but with the auction platforms interviewed in the studies. Some of high uncertainty, in order to survive or succeed companies or the auctions in the previous research are specialized in a organizations are forced to make quick decisions. certain category of products. And those auctions confirmed It has been justified that national culture plays a role in that customers may become more bonded with them due to the dissimilar concerns about the implementation of the improvements in the transaction environment. However, multi-access technologies. This affirms the statement of among the auctions in the Chinese study, none have such Hofstede (1983) that culture has inevitable influences on a specialty. Compared to the other Dutch auctions which management. Regarding uncertainty avoidance, while have no specialty, the same argument was given; no positive Dutch auctioneers realized the positive influences of the ad- influence on customer loyalty is expected. It is true that vanced technologies on the communication between buyers when an auction is adept in certain products and serving a and sellers, they expressed the reluctance of using them in group of customers with special interest with the products, reality as it may create the opportunity for buyers and sell- it would be relatively easier for the auction to retain the ers to perform exchanges outside the auction platforms. customers. Once the auction is able to provide a better However, in China, due to the high level of trust required transaction environment, those customers might become to complete a transaction, buyers are only confident to more bonded with it. place a purchase order when they can be assured that the In summary, the research findings of the impact of multi- product they are purchasing is really the one they want. Chi- access technologies on the expected success of consumer nese auctioneers are more willing to implement the tech- electronic auctions are concurrent, notwithstanding the nologies in practice, because they believe that customers minor dissimilarities. This may also infer why the third and trust them more than individual players in the auctions fourth propositions are affirmed in both studies. and buyers may be more confident to purchase products when they can see the products more precisely through Conclusions and recommendations the advanced technologies. This difference is possibly due to the different uncertainty avoidance in the two contexts. Following the detailed analysis and comparison of research Another dimension of culture, namely, collectivism ver- findings in China and the Netherlands, in this section, we sus individualism, influences the perceived value of using answer the central research question, validate the proposi- voice technologies and interactive TV in the context of trade tions, present the research relevance, give recommenda- processes, especially in the process of dispute resolution. tions to consumer electronic auctions, and suggest some Chinese auctioneers are in favour of these two technologies future research topics. because they can increase the sense of trust and harmony This research has examined the generalizability of the during the communication between buyers and sellers due theory regarding the impact of multi-access technologies to the availability of verbal or even facial recognition. This on consumer electronic auctions built by De Ruiter and sense of harmony is usually required in problem solving in Van Heck (2004). Based on their empirical study in the Neth- interpersonal relationships in China (Ulijn et al., 2005), since erlands we performed a replication study in China. We have within a collectivism society everybody is supposed to look assumed that due to the dissimilarity of several dominant after the interest of another individual in the same group. facets in these two countries, the previous research findings But in the Netherlands, a society with a focus on individual- could be significantly different from the current one. There- ism, Dutch auctioneers did not perceive the same value. fore, we pointed the central research question ‘To what ex- Despite our expectations, we did not find the maturity le- tent does the influence of multi-access technologies on vel of E-commerce different in the auctioneers’ opinions consumer electronic auctions differ between two countries across the two contexts. A secure and efficient payment sys- with divergent contexts?’ tem is always a vital issue in electronic auctions, no matter In line with the outcomes presented above, it has been in which development stage of E-commerce (Kambil and van revealed that some facets, including technology adoption Heck, 2002). Whenever, it is possible to improve this ex- and national culture do yield dissimilar perceptions of elec- change process, auctioneers would like to strive for it. As tronic auctioneers regarding the effect of using multi-access a result, auctioneers in both China and the Netherlands per- technologies on consumer electronic auctions. ceive the positive effect of using multi-access technologies The enormous amount of potential customers in China on payment and settlement. Geography was not treated as a does make the decision of Chinese auctioneers different special issue for Chinese auctioneers. This is most likely be- from that of Dutch auctioneers. While Chinese auctioneers cause the places in China that are difficult to access also were very optimistic about the influences of multi-access lack the infrastructure of the internet. Therefore, they do technologies on the interactivity between buyers and buy- not anticipate a large group of customers in those areas. ers, Dutch auctioneers did not recognize any specific added Aside from the potential reasons for different results we value from that. Chinese auctioneers primarily focus their originally considered, the analysis brought forth an addi- efforts on having as many customers as possible – with the tional consideration – the temporal differences in the hope that this will yield future profits. This can be explained empirical studies. Due to the tremendously quick develop- by China’s long-term oriented relationship culture. Besides ment of the internet, access technologies, and the perfor- that, it has been noticed that once Chinese auctioneers think mance of electronic auctions, auctioneers in 2006 have a that the application of multi-access technologies can bring more concrete idea about the application of multi-access them competitive advantages or make them more appealing technologies in consumer electronic auctions and a more in the market, they will not hesitate to go for it. This is con- realistic understanding of the impact of using multi-access sistent with the argumentation of Krug and Hendrischke technologies on exchange processes, interactivity between

The impact of multi-access technologies on consumer electronic auctions 59 stakeholders, and the expected success of auctions. There- Recommendations for electronic auctions fore, the scope and the extent of the impact of multi-access technologies on consumer electronic auctions have been As stated at the beginning of this article one of the objec- perceived differently by Dutch and Chinese auctioneers. tives of this research is to provide electronic auctions with Nevertheless, none of the dissimilarities were considered some suggestions, the following recommendations have pivotal. Overall, both Chinese and Dutch auctioneers have been formulated based on the results of the research. detected the same potentials of multi-access technologies First, through the comparison of the two studies, it has on consumer electronic actions. Even though the emphasis been found that electronic auctions possessing some speci- of multi-access technologies on exchange processes has ality may gain higher customer loyalty. This means that if shifted from data-oriented to communication-oriented, this the products sold on the electronic auctions are specialized, difference is possibly related to existing technology trends they could meet the needs of a certain group of customers. – from radical to incremental. Moreover both Dutch and It would be easier for those customers to find a target prod- Chinese auctioneers confirmed that more sophisticated mul- uct on the electronic auction platform which possesses a ti-access technologies would lead to more interactivity be- speciality than on one without any such specialty, as more tween stakeholders. Furthermore, these improvements or less relevant search results will be displayed. Thus cus- would indirectly increase the expected success of consumer tomers can benefit from time saving and would probably electronic auctions. Thereby, the proposition (P1) of this re- prefer to join this electronic auction more frequently, at search ‘The local differences lead to different uses and im- least for a certain category of products. pacts of multi-access technologies on consumer electronic Second, the characteristic of mobility is considered to be auctions.’ should be rejected. This conclusion is probably very important to customers, as internet access is still not due to the prevalence of both the access technologies stud- available all the time. If the access technologies could re- ied in this research and the business of consumer electronic duce or even eliminate the restrictions of space and time, auctions. If either of them is local, the industry or the appli- more traffic on the electronic auction platform, and more cation of a certain initiative, the perceived impact or value exchanges in the electronic auctions can be anticipated, be- might be significantly different. cause customers can keep bidding or enjoying other services In the end, based on the research findings in the Nether- of the electronic auction anywhere at any time. lands and China, it can be argued that ‘ the use of more Finally, customers, especially buyers do wish to join the sophisticated multi-access technologies would improve the rating mechanism, but they need a more convenient way to maturity level of exchange processes, enhance the interac- give feedback when a transaction has been carried out. The tivity between stakeholders, and then further lead to the rules of giving or gaining credibility should be more carefully higher expected success of consumer electronic auctions’. considered and frauds or tricks of obtaining high credibility should be noticed and prevented. The referenced value of the present rating system has decreased in the eyes of cus- Research relevance tomers, despite their desire to use or refer to it. This research captures a notable interest in the auction research stream – the influence of technologies on markets, Future research particularly electronic markets. Malone et al. (1987) have already demonstrated the distinctive influences of ICT tech- This research and the previous one of De Ruiter and Van Heck nologies on the creation of electronic markets. They also (2004) have revealed the impact of the sophistication level suggested that taking advantage of the technology to fur- of multi-access technologies on consumer electronic auc- ther develop markets and improve the relationship between tions in China and the Netherlands by following a qualitative stakeholders in this business network requires further method. Nevertheless, a quantitative method can be thought. In turn, this study contributes to the theory devel- adopted to test the hypotheses proposed in the studies. By opment of this specific research stream. studying a large number of consumer electronic auctions in As discussed in the introduction, the different maturity various markets, it could be possible to make statements level of E-commerce in China and the Netherlands is a key about whether or not the proposed hypotheses are valid phenomenon driving our interest in executing this study. according to the statistics, and the statements could be gen- Apart from these two countries, many other countries are eralized over all consumer electronic auctions based on the also confronting with their different stages of E-commerce. statistical generalizability (De Ruiter and van Heck, 2004). And hence, this study in fact also explores the possibility to Moreover, the influence of technologies on electronic skip the stages between infancy and maturity or accelerate auctions can be studied from other angles. Vesa and Van the growth of E-commerce by making use of multi-access Heck (2005) analyzed the factors relevant for adopting mul- technologies. ti-access technologies in electronic markets. They also fo- Moreover, considering the hotly debated topic of global cused on how the same multi-access technologies, i.e. the versus local adaptations of generic application systems internet, wireless data, wired and wireless voice, and inter- (Pozzebon and van Heck, 2006) and the ambitions of foreign active TV, are adopted in consumer electronic auctions. investments in E-commerce, especially in emerging mar- However, in their study, they demonstrated that media kets, this study provides an insight to practitioners of richness and the ability to provide multiple modes of E-commerce not only in China but also in many other coun- communication relationships stimulate the adoption of tries, where E-commerce is not matured and other cultural multi-access technologies. In order to detect the analytic factors are different. generalizability, similar research in varied markets could

60 S. Yang, E. van Heck be considered, especially the emerging markets, such as nomic growth can only be realized when and if it is widely China, where electronic auction markets are flourishing in diffused and used (Hall and Khan, 2003). As proposed by recent years. De Ruiter and Van Heck (2004), whether or not consumers Furthermore, based on the empirical research findings, are willing to adopt the multi-access technologies is another both of the studies have explored that auctioneers had important aspect that needs further study. Customer per- paid attention to business cooperation with external ser- ceived value (CPV) is one of the most successful strategies vice providers. In the previous research, Dutch auctioneers that can help companies to develop new services (Dahlberg noticed that it is necessary for them to cooperate with and Mallat, 2002). It would be interesting to use customer some external service providers in order to achieve the perceived value in the context of the adoption of new ac- highest maturity level of exchange processes. Similarly, cess technologies in future researches. in our research, the Chinese auctioneers had already started cooperating with external service providers, e.g. for logistics and payment, as they noted the essentiality of the co-development of the services. Since both of the Acknowledgements studies happened to emphasize this issue, business cooperation would be an interesting variable to include in the fu- We would like to thank Stephan de Ruiter for his knowledge ture research. and experience sharing of the previous research in the Neth- Finally, it seems that we are in an age of novel things. erlands in 2003, all the managers and employees of the elec- Organizations and companies are never hesitant to intro- tronic auctions in China for their time and cooperation duce cutting-edge technologies. While many new technolo- towards our empirical research, all the other people who gies are very welcomed by consumers, many of them also contributed to our study, and the reviewers of this article suffer failure. The contribution of new technology to eco- for their time and valuable comments. Appendix. Scorecard of maturity level of exchange processes Search process: Score Description 1 None. There are no categories and there is no search engine, search process is not supported by access technology 2 The auction is organized in categories, but has no search engine 3 The auction is organized in categories. The auction has a search engine, which can be used to find keywords in description or names 4 The auction is organized in categories. Popular items are easy to find. These are items that have a high amount of bids or hits. The search engine can be used to find several keywords. The search engine is intelligent (it uses for instance Boolean operators) 5 The auction is organized in categories. Popular items are easy to find. These are items that have a high amount of bids or hits. The search engine can be used to find several keywords. The search engine is intelligent (it uses for instance Boolean operators). Auction sends a message via access technology to suggest buying opportunities, using preference profiles of users or watchdogs Pricing process: Score Description 1 None. Bidding is only possible by sending a message or the item(s) must be specified on a form 2 Bidding is possible via automated forms. These forms present the actual item 3 Bidding is possible via automated forms. These forms present the actual item. Auction gives feedback when a (higher) bid is made. Sellers/buyers can use a reserve price 4 Bidding is possible via automated forms. These forms present the actual item. Auction gives feedback when a (higher) bid is made. Sellers/buyers can use a reserve price. Auction uses more than one auction mechanism 5 Bidding is possible via automated forms. These forms present the actual item. Auction gives feedback when a (higher) bid is made. Sellers/buyers can use a reserve price. Auction uses more than one auction mechanism. Participants can use bidding agents or shopbots to automate the bidding process? Logistical process: Score Description 1 None. Auction does not have a logistical process, or is not supported by access technology 2 It’s easy for the sellers/buyers to communicate the location of their goods through access technology 3 The sellers/buyers are obligated to communicate a proposal for the logistical settlement. This is taken account for by using access technology or the policies prescript the logistical settlement

The impact of multi-access technologies on consumer electronic auctions 61 Appendix (continued) Score Description 4 The sellers/buyers are obligated to communicate a proposal for the logistical settlement. This is taken account for by using access technology or the policies prescript the logistical settlement. Auction uses a (preferred) third party for logistics although the seller does not have to send the items through the third party, or the logistical settlement is part of the item being sold and is transparent (i.e. real state) 5 The sellers/buyers are obligated to communicate a proposal for the logistical settlement. This is taken account for by using access technology or the policies prescript the logistical settlement. Auction uses a (preferred) third party for logistics although the seller does not have to send the items through the third party, or the logistical settlement is part of the item being sold and is transparent (i.e. real state). Sellers/buyers can receive track and trace information, concerning shipped goods, via access technology Payment and settlement process: Score Description 1 None. Auction does not have a payment and settlement process, or is not supported by access technology 2 It’s easy for the sellers/buyers to communicate their procedures through access technology. The auction is not involved 3 Sellers/buyers are obligated to mention their procedures through access technology, or the policies prescript the payment and settlement process 4 Sellers/buyers are obligated to mention their procedures through access technology, or the policies prescript the payment and settlement process. Auction supports a physical payment method (e.g. cash, pay per check, etc.), or the payment method is part of the item being sold. Auction uses a (preferred) third party that can be used for settlement (e.g. escrow services) 5 Sellers/buyers are obligated to mention their procedures through access technology, or the policies prescript the payment and settlement process. Auction supports a physical payment method (e.g. cash, pay per check, etc.), or the payment method is part of the item being sold. Auction also supports a digital payment method via the platform (e.g. online payment using SET. SSL, etc.), or via a third party (e.g. mobile payment, payment through Interactive TV, etc.). Auction uses a (preferred) third party that can be used for settlement (e.g. escrow services) Authentication process: Score Description 1 None. Auction does not have an authentication process, or is not supported by access technology 2 Sellers have to provide authentication information when they register an item through access technology 3 Sellers have to provide authentication information when they register an item through access technology. Authentication is mentioned in policies. Sellers, auction, or (preferred) third party has to provide some sort of quality assurance (e.g. warranty) 4 Sellers have to provide authentication information when they register an item through access technology. Authentication is mentioned in policies. Auction or (preferred) third party has to provide some sort of quality assurance (e.g. warranty) 5 Sellers have to provide authentication information when they register an item through access technology. Authentication is mentioned in policies. A (preferred) third party verifies the settlement process, or provides a quality assurance. Sellers can deliver samples (e.g. 3D video or audio), based on which (preferred) third party can verify product Product representation process: Score Description 1 None. The items can only be represented by a name, or the product representation process is not supported by access technology 2 The items have a textual description that is provided by seller, buyer, or auction 3 The items have a textual description that is provided by seller, buyer, or auction. The description can include an image 4 The items have a textual description that is provided by seller, buyer, or auction. The description can include an image. Seller can improve the visibility by using colours, bold typeface, or by improving the position. The description includes standardized product and quality specification language (e.g. quality scale) 5 The items have a textual description that is provided by seller, buyer, or auction. The description can include an image. Seller can improve the visibility by using colours, bold typeface, or by improving the position. The description includes standardized product and quality specification language (e.g. quality scale). Seller can add audio or video samples of the product Regulation process: Score Description 1 None. Auction does not have a regulation process, or is not supported by access technology 2 Auction warns sellers/buyers against inappropriate behaviour or illegal transactions through access technology (continued on next page)

62 S. Yang, E. van Heck Appendix (continued) Score Description 3 Auction warns sellers/buyers against inappropriate behaviour or illegal transactions through access technology. Auction has a control procedure to track inappropriate or illegal items. Sellers/buyers will be banned from the auction by removing the user id, or they will be placed on a blacklist 4 Auction warns sellers/buyers against inappropriate behaviour or illegal transactions through access technology. Auction has a control procedure to track inappropriate or illegal items. Sellers/buyers will be banned from the auction by removing the user id, or they will be placed on a blacklist. Participants of the auction are encouraged to report illegal activities via access technology 5 Auction warns sellers/buyers against inappropriate behaviour or illegal transactions through access technology. Auction has a control procedure to track inappropriate or illegal items. Sellers/buyers will be banned from the auction by removing the user id, or they will be placed on a blacklist. Participants of the auction are encouraged to report illegal activities via access technology. Auction actively uses the possibilities of access technology to track auction members violating rules and regulations Risk management process: Score Description 1 None. Registration is not required, or risk management process is not supported by access technology. People can participate anonymously 2 Sellers/buyers have to register. Auction warns sellers/buyers against the sanctions of giving false user information. Auction disclaims the responsibility of the correctness of user information 3 Sellers/buyers have to register. Auction warns sellers/buyers against the sanctions of giving false user information. Auction disclaims the responsibility of the correctness of user information. Auction enables password protection. Auction verifies user information by sending a verification message, or by checking credit card or physical address information 4 Sellers/buyers have to register. Auction warns sellers/buyers against the sanctions of giving false user information. Auction disclaims the responsibility of the correctness of user information. Auction enables password protection. Auction verifies user information by sending a verification message, or by checking credit card or physical address information, or by using access technology (based on mobile operator, set-top box, etc) 5 Sellers/buyers have to register. Auction warns sellers/buyers against the sanctions of giving false user information. Auction enables password protection. Auction offers secure identification based on access technology. Auction guarantees the correctness of the identity of sellers/buyers Influence process: Score Description 1 None. Auction does not have an influence process, or is not supported by access technology 2 Auction policies mention penalties (e.g. user id removal, blacklist, etc.) for opportunistic behaviour 3 Auction policies mention penalties (e.g. user id removal, blacklist, etc.) for opportunistic behaviour. Auction provides incentives for good behaviour (e.g. personalized page with user statistics) 4 Auction policies mention penalties (e.g. user id removal, blacklist, etc.) for opportunistic behaviour. Auction provides incentives for good behaviour (e.g. personalized page with user statistics). Auction uses a rating system to evaluate the credibility of sellers and/or buyers 5 Auction policies mention penalties (e.g. user id removal, blacklist, etc.) for opportunistic behaviour. Auction provides incentives for good behaviour (e.g. personalized page with user statistics). Auction uses a rating system to evaluate the credibility of sellers and/or buyers. Participants face lock-in effects through incentives (e.g. bonus systems, more personal communication systems, etc) Dispute resolution process: Score Description 1 None. Dispute resolution is not mentioned in policies, or this not supported by access technology 2 Auction policies mention dispute resolution. The policies provide means to solve disputes 3 Auction policies mention dispute resolution. The policies provide means to solve disputes. Auction has a helpdesk that can be used for dispute resolution 4 Auction policies mention dispute resolution. The policies provide means to solve disputes. Auction has a helpdesk that can be used for dispute resolution. Auction uses a (preferred) neutral third party for dispute resolution although the sellers/buyers do not have to resolve the disputes through the third party 5 Auction policies mention dispute resolution. The policies provide means to solve disputes. Auction has a helpdesk that can be used for dispute resolution. The auction always uses the same neutral third party for dispute resolution. Auction provides a warranty for the items sold

The impact of multi-access technologies on consumer electronic auctions 63 References Pinker, E., Seidmann, A. and Vakrat, Y. (2003) Managing online auctions: Current business and research issues. Management Belcher, J. (2006) China: Broadband giant, e-commerce infant, Science 49(11), 1457–1484. eMarketer, September 14. <http://www.emarketer.com>. Pozzebon, M. and van Heck, E. (2006) Local adaptations of generic Dahlberg, T. and Mallat, N. (2002) Mobile payment service application systems: The case of veiling Holambra in Brazil. development-managerial implications of consumer value Journal of Information Technology 21, 73–85. perceptions. IN Presented at 10th European conference on Ulijn, J., Rutkowski, A., Kumar, R. and Zhu, Y. (2005) Patterns of information systems, information systems and the future of the feelings in face-to-face negotiation: A Sino-Dutch Pilot Study. digital economy, ECIS 2002, Gdansk, Poland. Cross Culture Management 12(3), 3. De Ruiter, S. and Van Heck, E. (2004) The impact of multi-access Vesa, J. and Van Heck, E. (2005) Factors in adopting multi-access technologies on consumer electronic auctions. European Man- technologies in online consumer auction markets in Finland. agement Journal 22(4), 377–392. European Management Journal 23(2), 182–194. Fairchild, A., Ribbers, P. and Nooteboom, A. (2004) A success factor model for electronic markets: Deﬁning outcomes based on SHENGYUN YANG is a Ph. D. candidate at stakeholder context and business process. Business Process Rotterdam School of Management, Erasmus Management Journal 10(1), 63–79. University. Her researches focus on infor- Hall, B. and Khan, B. (2003) Adoption of new technology, working mation markets and consumer online paper 9730, National Bureau of Economic Research, Cambridge. auctions. Hofstede, G. (1983) The culture relativity of organizational practices and theories. Journal of International Business Studies 14, 75–89. Hofstede, G. (1993) Culture constraints in management theories. Academy of Management Executive 7(1), 81–94. Jap, S. (2001) The impact of online, reverse auctions on buyer- supplier relationship, working paper, Goizueta Business School, Emory University, Atlanta, US. ERIC VAN HECK is Professor of Information Kambil, A. and van Heck, E. (2002) Making markets. Harvard Management and Markets at Erasmus Uni- Business School Press, Boston. versity’s Rotterdam School of Management. Krug, B. and Hendrischke, H. (2006) Framing China: Transformation He is director of doctoral education at and institutional change. ERIM Report Series Research in Erasmus Institute of Management (ERIM). His Management, ERS-2006-025-ORG. research concentrates on electronic mar- Malone, T., Yates, J. and Benjamin, R. (1987) Electronic markets kets and business networks. His recent and electronic hierarchies. Communications of the ACM 30(6), books are Making Markets – co-authored 484–497. with Ajit Kambil – that was published by Paarlberg, J. (2001) Web auctions in Europe: An analysis of 194 Harvard Business School Press and Smart consumer web auctions in eight European countries’, Erasmus Business Networks – co-edited with Peter Vervest, Kenneth Preiss, University Rotterdam (M.Sc., thesis). and Louis-Francois Pau – that was published by Springer. ß

Multi-access Technologies and Electronic Auctions

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Multi-access Technologies and Electronic Auctions — Document Transcript