Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
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A Case Study on the Success Factors of B2C Reverse Auction Business Model

사례 연구를 통한 B2C 역경매 사업 모델의 성공 요인 분석

  • Received : 2016.04.18
  • Accepted : 2016.09.08
  • Published : 2016.09.30
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Abstract

The purpose of the study is to derive success factors of B2C reverse auction business model, a business model contributes to the recent innovative practices in e-commerce and service sector. Electronic reverse auction has been traditionally used to ensure the procurement convenience and purchasing efficiency in B2B or B2G settings, however, e-RA is now expanding its basis toward B2C commerce industry along the huge success of an online e-RA travel service provider Priceline.com. Recently, B2C e-RA business model is getting the spotlight in the Korean venture industry with a variety of startups in diverse areas. However, e-RA does not work perfect in all kinds of trade settings. Therefore, we conducted a multiple case study to find out the success factors of B2C business model as follows : First, large supplier basis is an important factor that constructs a quasi-perfect competition environment. Second, the high online and mobile accessibility or e-readiness of Korean consumers was also a critical aspect of the success of e-RA. Lastly, e-RA performs best when the supplier switching cost is low and the trading occurs infrequently.

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References

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