Extending variety seeking to multi-sided platforms: Impact of new retailer listing

Khadija Ali Vakeel, Fudurić, Morana and Edward C. Malthouse

Journal of Retailing and Consumer Services, 2021, vol. 59, issue C

Abstract: This study uses theories of variety seeking to examine how a new retailer listing on a multi-sided platform (MSP) affects consumer buying behavior. Using a unique dataset from an online MSP, we evaluate changes in purchase frequency with individual retailers after a new one is listed. Contrary to expectations, the results indicate that consumers increase their purchase frequency at existing retailers. Moreover, compared to consistency seekers, variety-seeking consumers show a higher positive effect as they buy even more. This result is observed for retailers in both competing and non-competing product categories. Finally, we discuss the theoretical contributions and implications for MSPs and retailers.

Keywords: Multi-sided platform; Retail platforms; Variety seeking; Propensity scoring models (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:59:y:2021:i:c:s0969698920313904

DOI: 10.1016/j.jretconser.2020.102382

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