scholarly journals Do Amateur Sellers Adopt The Professionals Price Ending Formats? Lessons From The Used Car Market

2014 ◽  
Vol 30 (2) ◽  
pp. 387
Author(s):  
Marc Prieto

This study investigates the differences between professional retailers and amateur resellers in their adoption of different price ending formats. We conduct our analysis on a 1,700 ads car pool representative of the French used car market to demonstrate how seller profiles and car attributes impact price ending formats adoption. The results reveal that amateur sellers are more likely to use round ending prices than professionals, especially for expensive and high mileage cars. Furthermore, product attributes (extras) and obsolescence indicators significantly moderate the choices of price ending formats.

2010 ◽  
Vol 42 (28) ◽  
pp. 3619-3627 ◽  
Author(s):  
Arif Sultan
Keyword(s):  

2017 ◽  
Vol 14 (2) ◽  
pp. 137-159
Author(s):  
Farrah Arif ◽  
Sarah Suneel Sarfraz

This case features the challenges of a start-up website in the used car market in 2015 as its founding partners assess potential sources of profitable growth and ways to maintain their competitive advantage. Founded in Pakistan, PakWheels.com was a vertically classified automotive portal. The case goes on to illustrate how PakWheels.com successfully revolutionized the used-car trade channel by bridging the gap between the traditional retail channel of car dealers and buyers. Key discussion points of the case revolve around the turning point of PakWheels business, namely retention of users while sustaining the current business model, identification of key strategies for scaling up and monetization, and response to competitive threats to safeguard its market position. Through assessing these options and discussing this case, students will learn about strategic problems faced by online portals as well as how these unique businesses create value for end users.


Author(s):  
Ben Jackson ◽  
Genevieve Joy

Mahindra Firstchoice illustrates the process of ecosystem orchestration in the context of the second-hand car market in India. It describes how Mahindra Firstchoice mapped the ecosystem in relation to six key parties—consumers who were buyers, consumers who were sellers, car manufacturers, independent used-car dealers, independent car service workshops, and banks. It then identified the bottlenecks and ‘pain points’ that afflicted the six parties. The used-car market did not function properly because of lack of trust, information, and transparency and Mahindra Firstchoice worked with the parties to identify solutions to the market failures. These involved, amongst other things, the creation of third-party car inspection services, the establishment of a multi-brand car-dealer franchise, a warranty system, a bluebook of second-hand prices and transactions, and a car diagnosis and repair system.


2012 ◽  
Vol 102 (5) ◽  
pp. 2206-2236 ◽  
Author(s):  
Nicola Lacetera ◽  
Devin G Pope ◽  
Justin R Sydnor

Can heuristic information processing affect important product markets? Analyzing over 22 million wholesale used-car transactions, we find evidence of left-digit bias in the processing of odometer values, whereby individuals focus on the number's leftmost digits. The bias leads to discontinuous drops in sale prices at 10,000-mile odometer thresholds, along with smaller drops at 1,000-mile thresholds. These findings reveal that information-processing heuristics matter even in markets with large stakes and easily observed information. We model left-digit bias in an inattention framework and structurally estimate the inattention parameter. Empirical patterns suggest the results are driven by final customers rather than professional agents. (JEL D12, D44, D83, L81)


Author(s):  
Christopher Kopper

AbstractUntil now, research on the breakthrough of mass motorization has neglected the importance of the used car market. Empirical evidence proves that the used car market had a significant impact on the growth of car ownership and the purchase of cars among white and blue-collar workers. The transparency and flexibility of the used car market, the lack of price regulation and the degressive curve of used car prices facilitated car ownership among medium income Germans as early as the late 1950s. German car manufacturers recognized the potential of the used car market for the promotion of new car sales, but adopted different market strategies. US companies like Opel and Ford changed their models frequently to promote the sale of new cars and to accelerate the obsolescence of older models, whereas Volkswagen followed the strategy of incremental changes in order to create a higher value for used cars and to generate an additional benefit for new car customers.


2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Simine Vazire

When consumers of science (readers and reviewers) lack relevant details about the study design, data, and analyses, they cannot adequately evaluate the strength of a scientific study. Lack of transparency is common in science, and is encouraged by journals that place more emphasis on the aesthetic appeal of a manuscript than the robustness of its scientific claims. In doing this, journals are implicitly encouraging authors to do whatever it takes to obtain eye-catching results. To achieve this, researchers can use common research practices that beautify results at the expense of the robustness of those results (e.g., p-hacking). The problem is not engaging in these practices, but failing to disclose them. A car whose carburetor is duct-taped to the rest of the car might work perfectly fine, but the buyer has a right to know about the duct-taping. Without high levels of transparency in scientific publications, consumers of scientific manuscripts are in a similar position as buyers of used cars – they cannot reliably tell the difference between lemons and high quality findings. This phenomenon – quality uncertainty – has been shown to erode trust in economic markets, such as the used car market. The same problem threatens to erode trust in science. The solution is to increase transparency and give consumers of scientific research the information they need to accurately evaluate research. Transparency would also encourage researchers to be more careful in how they conduct their studies and write up their results. To make this happen, we must tie journals’ reputations to their practices regarding transparency. Reviewers hold a great deal of power to make this happen, by demanding the transparency needed to rigorously evaluate scientific manuscripts. The public expects transparency from science, and appropriately so – we should be held to a higher standard than used car salespeople.


The production of cars has been steadily increasing in the past decade, with over 70 million passenger cars being produced in the year 2016. This has given rise to the used car market, which on its own has become a booming industry. The recent advent of online portals has facilitated the need for both the customer and the seller to be better informed about the trends and patterns that determine the value of a used car in the market. Using Machine Learning Algorithms such as Lasso Regression, Multiple Regression and Regression trees, we will try to develop a statistical model which will be able to predict the price of a used car, based on previous consumer data and a given set of features. We will also be comparing the prediction accuracy of these models to determine the optimal one.


2013 ◽  
Vol 04 (06) ◽  
pp. 453-460 ◽  
Author(s):  
Yali Yang ◽  
Hao Chen ◽  
Ruoping Zhang
Keyword(s):  

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