Impact of consumer behavior on online resale price and transaction closure

Bhagirath (), Neetu Mittal () and Sushil Kumar ()
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Bhagirath: Amity University Noida
Neetu Mittal: Amity University Noida
Sushil Kumar: Polytechnic University of Catalonia

Journal of Revenue and Pricing Management, 2022, vol. 21, issue 6, No 4, 623-637

Abstract: Abstract The consumer seller’s expected price for their old product in the resale online market is most of the time significantly higher than the potential buyer transaction price, which results in fewer chances of transaction closure. The proposed work aims to analyze the consumer seller and buyer behavior to drive a relationship among the seller expected price, transaction price, and probability of deal closure of resale product. Data of online resale platform are analyzed and used to develop machine learning models. The consumer seller expected and transaction price model results have been compared to derive the relationship with the probability of transaction closure. The change in predicted and the actual prices is judged by using statistical parameter's mean absolute percentage error (MAPE). This research can help businesses to understand customer expectations of resale price and helps customers to put right price for a high probability of the transaction.

Keywords: Consumer behavior; Resale price; XGBoost; MAPE; Online customer expectation; Transaction price; Probability (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41272-022-00381-y

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