Research Is Needed To Explore Further Aspects Of Online Bidding

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Auctions are known to serve people in multiple ways from ancient times. People are drawn to them for many reasons, the primary one being the monetary benefits involved. However, there might be other aspects contributing to the fame of auctions, such as the joy and excitement of competing against a crowd for winning a deal.

In present times as well, online auctions turn out to be crowd pullers, with sites like eBay doing amazing business through online bidding. It is good to see online auctions becoming subject to research studies like the one conducted by two professors named Adam Galinsky and J. Keith Munighan from Management and Organizations Department of the Kellogg School of Management. They were also joined by Gillian Ku belonging to London Business School.

Their study published in the Journal of Personality and Social Psychology busts a few common myths about online auctions, such as:

• It is commonly perceived that bids starting with high initial bid price yield the highest ending price. Their study based upon actual bidders, however, proved that bid prices starting at a lower price attracted more number of bidders, which led to overall increased final bid price

• Their study also revealed that majority of people want to stay away from the economical repercussions of highly populated bidding venues, but they are drawn more towards such auctions due to their psychological tendencies to get more in more crowded places

• In addition, they revealed that their people’s commitment and loyalty to a particular brand also acts a factor to draw more people towards a particular auction

Conclusion

To explore different aspects of online bidding, there is a great need of further research and development on the subject. This also reveals the fact that this would remain a much highlighted online phenomenon in the times to come.