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Impact of consumer behavior on online resale price and transaction closure

  • Research Article
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Journal of Revenue and Pricing Management Aims and scope

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.

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Acknowledgements

OLX India has provided data for our research and all the data are being used with the permission of OLX India. No direct data are shown in the result perhaps output of the model and comparison are only shared in the research.

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Authors and Affiliations

  1. Amity Institute of Information Technology, Amity University Noida, Noida, India

    Bhagirath & Neetu Mittal

  2. Polytechnic University of Catalonia, Barcelona, Spain

    Sushil Kumar

Authors
  1. Bhagirath
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  2. Neetu Mittal
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  3. Sushil Kumar
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Correspondence to Bhagirath.

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Bhagirath, Mittal, N. & Kumar, S. Impact of consumer behavior on online resale price and transaction closure. J Revenue Pricing Manag 21, 623–637 (2022). https://doi.org/10.1057/s41272-022-00381-y

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  • DOI: https://doi.org/10.1057/s41272-022-00381-y

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