Small Buyers Adoption of Reverse Aggregation Electronic Markets: A Case Study on the Korean Auto Repair Industry

  • Lim, Seong-Bae (State University of New York-Geneseo) ;
  • Kim, Sung-Kwan (University of Arkansas at Little Rock) ;
  • Mitchel, Robert B. (University of Arkansas at Little Rock) ;
  • Hong, Soon-Goo (Dong-A University)
  • Published : 2004.12.01

Abstract

The purpose of this study is to investigate factors which can lead small buyers to participate in a Reverse Aggregation Electronic Market (RAEM). Five factors including search, selection, price, delivery, and Internet literacy were selected as possible factors which are expected to influence small buyers' participation in a RAEM. This paper focused on a RAEM of the Korean automotive industry in which the third party aggregator formed a group of small automobile repair shops (ARS) and amassed buying power for them by building a buyer' oriented electronic market (EM). Survey data were collected from small ARS in South Korea. The results of the empirical analysis indicated that fast delivery and support for Internet illiteracy are potential incentives that could influence buyers' decisions to join a RAEM.

Keywords

Reverse Aggregation;Electronic Market;Automotive industry