Intensity of bidding drives desire to win and willingness to pay, U of A marketing researchers find.
By MICHAEL BROWN
How fast a competitor counters your bid during an auction will increase your desire to win—and likely your willingness to pay for the auctioned product, according to a new study by a pair of University of Alberta business professors.
“The more intense bidding is in an auction, the more likely it is that a buyer will be gripped by bidding frenzy,” said U of A marketing professor Peter Popkowski Leszczyc, who carried out the study with marketing colleague Gerald Häubl.
The researchers invited people to participate in what they were told was a live, campus-wide online auction. In actuality, the subjects were simply bidding against a program designed to oppose bids at various speeds.
“We found the quickness of being outbid by someone else causes consumers to perceive an auction as being more intensely competit...