The Effect of Secondary Market Options on Shopping Behavior in the Primary Market

Abstract

Due to the emergence of online flea market apps, consumers have begun to shop in retail shops with the intention of reselling in the future. In this paper, the author examines the effect of secondary market options on the shopping behavior in the primary market. More specifically, the paper examined the attractiveness of resale conditions, such as resale price and duration until settlement, at the secondary market using conjoint analysis. The analysis results indicate that although price and product attributes are important in decision-making at the primary market, the conditions at the secondary market also have positive utility. Moreover, the sellers on the online flea market app have relatively low price sensitivity at the primary market, and marginal willingness-to-pay of the conditions in the secondary market is higher compared with other user segments. The presence of a secondary market has the potential to raise consumer’s willingness-to-pay at the primary market.

Keywords

• second-hand product
• secondary market
• willingness-to-pay
• conjoint analysis