Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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E-market Consumer Responses to Platform Promotions: A Case of Korean E-marketplace

  • Yiying Zhang (School of Business, Hunan University) ;
  • Youngsok Bang (School of Business, Yonsei University) ;
  • Sang Won Kim (College of Business, Korea Advanced Institute of Science and Technology (KAIST))
  • Received : 2021.11.22
  • Accepted : 2022.09.28
  • Published : 2023.03.31
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Abstract

This study empirically investigates e-market consumers' responses to monthly platform discount coupons. Specifically, based on an archival data set obtained from a leading e-marketplace in Korea, our hidden Markov model reveals that there are two different types of consumers on the e-market, those who purchase relatively less but seek temporal seller discounts (Class 1) and those who buy relatively more but are less attracted by such discounts (Class 2). Class 1 consumers purchase products when platform coupons are available but are less likely to buy when platform coupons are all redeemed. On the other hand, Class 2 consumers are willing to purchase products even without platform coupons. Our latent groups demonstrate that the effect of platform promotion is not unidirectional but may depend on the consumer state and class. We discuss the theoretical contributions and managerial implications of our findings.

Keywords

Acknowledgement

This research was financially supported by the Yonsei University Research Grant of 2021 (2021-22-0112), the Yonsei Signature Research Cluster Program of 2022 (2022-22-0007), and the BK21 FOUR (Fostering Outstanding Universities for Research) in 2022.

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