Research On The Forming Model Of The Price Dispersion In The Mode Of C2C

With the maturity of the Internet, a convenient and clipping web-transaction platform has been set up. EC, the brand new industry, has gained huge development these years with the comparatively lower transaction cost compared to the traditional market based on the development of the Internet. The theory and time of price dispersion in the traditional setting have been collided due to the burgeoning online market. The opening and convenience of the online market don't make itself the expected"non-frictional market". The price dispersion should be diminished, which means the price of the products with the same quality should be in the same place. Price dispersion is the paramount factor which should be referred to when the company plans to decide the price. Decreasing the price dispersion of the products of the online market and improving the market efficiency are the major channel which are considered to be the pathway of the development of EC in China. This research is directing at the demonstration research on the problem.This research discusses the influencing factors of the price dispersion from the aspects of electronic tradesman attribute and market attribute. This research also does the demonstration research on the influencing factors of the price dispersion of the online market according to the processing consequence of the SPSS13.0 which comes from the online observation of the price distribution of nearly 70 different types of mobile phones (taking Taobao as an example). The forming model of the price dispersion in the mode of C2C has been constructed from this paper.The research exhibits the result as follows: electronic tradesman and market attribute are taking effect on the price dispersion, but of which, the major influencing factor is market attribute. The sequence of the influencing magnitude of the influencing factors of the price dispersion is (from big to small): 1, consumer involvement; 2, the number of competitors in the market; 3, the duration in the market. In the electronic tradesman attribute, the duration in the market shows the positive relation to the price dispersion, but the reliability in fulfillment, shipping and handing, inventory position, consumer awareness and third party attestation show no relation to the price dispersion. In the market attribute, consumer involvement shows positive relation to price dispersion which improves with the improvement of the consumer involvement; however, the number of competitors shows negative relation to price dispersion which goes down with the enlargement of the competitors.