The proliferation of online auctions has attracted significant research interest in understanding real-life bidding behavior. However, most of the empirical work has focused on business-to-consumer (B2C) auctions. A natural question is whether the findings obtained from B2C auctions are applicable to business-to-business (B2B) auctions, which often involve much higher stakes. In this paper, we examine how professional bidders choose their bidding strategies in multichannel, sequential B2B auctions. Using an extensive data set from the world's largest B2B market for cut flowers, we find a stable taxonomy of bidding behavior and identify five distinctive bidding strategies. In addition, we demonstrate that bidders' choice of strategies is associated with their demand, budget constraint, and transaction cost. These findings challenge the conventional view that bidders' bidding strategies will converge as they gain experience. We also analyze the economic impacts of different strategies. Our results provide useful implications for practical design of B2B auctions.
Consumer informedness plays a critical role in determining consumer choice in the presence of information technology deployed by competing firms in the marketplace. This paper develops a new <i>theory of consumer informedness</i>. Using data collected through a series of stated choice experiments in two different research contexts, we examine how consumer characteristics and observed behaviors moderate the influence of price and product informedness on consumer choice. The results indicate that different types of consumer informedness amplify different consumer behaviors in specific consumer segments. In particular, we found that price informedness is more influential among consumers in the <i>commodity segment</i>. They exhibit greater <i>trading down</i> behavior, which represents stronger preferences for choosing the products that provide the best price. In contrast, product informedness is more influential among consumers in the <i>differentiated segment</i>. This group exhibits greater <i>trading out</i> behavior, involving stronger preferences for choosing products that best suit their specific needs. These results suggest that firm information strategy should take into account consumers' characteristics, their past observed behaviors, and the impact of consumer informedness. We also discuss the theoretical contributions of this research and its broader implications for firm-level information strategy.