Research On The Impact Of Consumer Participation Behavior On Sellers Pricing Strategy In Online Trading

In order to mitigate the trading risk brought by information asymmetry, online trading platform allows consumers serve as the information publisher, enabling their right to deliver feedback comment of the shopping experience. As a result, according to consumer participation, information provided by the online trading platform can be classified into two categories, seller issued information and consumer participation behavior information. The consumer participation behavior information directly reflects consumers’ feedback on the products and seller services, which has a significant effect on buyers’ purchase intention. Considering the significant effect of the consumer participation behavior information on the online consumers’ decision-making, the seller will actively react to these information. The mechanism between consumer participation behavior and seller pricing strategy is elaborated and analyzed through case study in this paper.According to the change of consumer participation behavior information, two methods may be adopted by the seller to adjust the pricing strategy. One is raising the price, corresponding to the premium brought by consumer participation behavior information, while the other one is converting this advantage into a higher volume. As a result, model of pricing affected by consumer participation behavior and model of sales affected by consumer participation behavior are built respectively. The sellers’ reacting behavior to consumer participation behavior is discussed. Furthermore, price dispersion of the online trading product and pricing strategy of seller in different developing stages are analyzed.Researching results reveal that the seller will actively respond to the change of consumer participation behavior information and adjust their pricing strategy. Sellers raise the price of products according to the premium brought by quantitative polarity information of consumer participation behavior. But sellers chose not to change the price and turn the advantage brought by information strength to the increasing volume. However, the qualitative polarity information doesn’t have any significant effect on the product pricing and sales volume, which may result from its limited effect on the consumers’ decision making because of the information authenticity.The effect of consumer participation behavior information on the seller pricing strategy is analyzed in this paper, which is complemented by elaborating the relevant theories of consumer participation behavior mechanism. Additionally, the price dispersion of online market product and the seller pricing strategy are analyzed respectively. This paper may serve as auxiliary reference for the seller to adjust pricing strategy, which contributes to the perfection of the online trading platform and the improvement of trading mechanism.