Discussion

We study consumer habits on eBay for two very different types of products: designer watches and DVDs. Using variables that correspond to theory, we find that - consistent with our expectations - both seller reputation and number of seller ratings are significant factors in auction pricing, and are more important for designer watches than for DVDs. Furthermore, our exploratory analysis on the impact of the quality of descriptions provided by sellers - which also exhibits a significant positive impact on pricing - identifies an important research area for future studies.

One caveat - and useful area for future research - is that online relationships are continually changing as users become more experienced and as eBay adjusts its interfaces and functionality.

Finally, in terms of areas for future research, it should be noted that academia is not alone in their pursuit of knowledge regarding consumer behavior on eBay or on the Internet in general. As large businesses realize the potential of the Internet, and in particular eBay, as a possible channel of distribution, they have begun to gather intelligence about this new mechanism. For example, Scot Wingo, CEO of Channel Advisors, recently spoke about his company's analysis of eBay auction pricing. He stated that his firm had identified that over 30 variables can impact price (Wingo, 2002). Thus, while considerable academic research has been conducted , there is much more that can be learned. By combining the statistical methods and objectivity of academia with the data access and resources of industry participations, there is great potential to gain even greater insights into consumer behavior on eBay and other E-Businesses.