Brand equity effects on bidding strategies in an online environment: Evidence from eBay coin auctions

Internet auction bidders seldom have all the information resources upon which they have learned to comfortably rely. This raises the possibility that internet auction participants depend more on brand related knowledge and employ bidding strategies consistent with heightened valuations of brand related information. This study empirically examines how differences in brand equity affect consumer online auction behavior on eBay. Branded products with objective values (certified coins) are examined for differences in bidding behavior across auctions. The results indicate auction participants employ incremental bidding strategies for preferred brands that have higher prices except when those brands were for coins of the highest quality. Auctions that had sellers who were not power sellers or which did not take Paypal are more prone to attract late or last minute bidders.