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- W2912361730 abstract "Enhancing repurchase rate has become the core competency of online stores in long-term development. The price reduction and advertising are two common ways for online promotion, the online stores are often only aware of influence of price and advertisement on first-purchase, while ignoring their effects on repurchase behaviors, and this would produce the risk of only concerned about short-term gains and ignore the long-term value. Based on the transaction data of TAOBAO, this paper focus on the influence of price and advertisement on repeat purchase rate using the nonlinear empirical models. We draw the following three innovative conclusions: (1) It exists inverted U-shaped relationship between the price and repurchase rate, which confirms the expectancy disconfirmation theory; (2) There is the U-shaped relationship between advertising investment and repurchase rates, which could be explained by the increasing returns to scale of advertisement. (3) By making a comparative analysis on the sensitivity of search, experience, and credence products, we find that the experience products have the largest price sensitivity and advertising sensitivity in the three categories. This study enrich the theory of consumer behavior in C2C environment and provide the necessary decision support for online stores." @default.
- W2912361730 created "2019-02-21" @default.
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- W2912361730 date "2012-01-01" @default.
- W2912361730 modified "2023-10-16" @default.
- W2912361730 title "Effects of Price and Advertisement on C2C Repurchase Behavior: A Study Across Search, Experience, and Credence Products" @default.
- W2912361730 doi "https://doi.org/10.2139/ssrn.2263385" @default.
- W2912361730 hasPublicationYear "2012" @default.
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