Lemon And Marketing Strategies In Online Transactions Is Discussed

The Internet technology has been developing rapidly since the 1990s, according to the latest data released by CNNIC, at the end of 2009, the total number of Chinese Internet users reached 384 million, covering 28.9% of the whole country's people, the number is still increasing larger and larger. The Internet has profoundly changed people's lives, including major changes in people's shopping pattern. The emergence of the Internet technology has built a virtual electronic marketplace, contributed to the commodity trading transactions to the Internet transactions. In the year 2009, Chinese online shoppers reached 108 million, accounting for 28% of Internet users;the online trading turnover reached 267 billion Yuan, which shows that the Internet has become a very valuable marketing channel.However, the Internet breaks the limits of time and spaces, creating a virtual online market, as a result, the lemon problems in the online market are worsened.Compared with Europe, the United States, South Korea and other countries with high Internet penetration, China's online shopping penetration rate is still relatively low, although this ratio continued to rise. In the open online world, consumers often hear, see or encounter a variety of network security threats, and have the anxiety to the online transaction.These data and facts prove the existence of lemon problem in China's online market.Lemon problem is adverse selection problem in the product markets.Resulted from asymmetry information, Lemon problem reduces the efficiency of market transactions, sometimes even leads to the market failure.In view of the objective existence and the serious influence of the online lemon problem, this paper focuses on the lemon problems in the online market.The lemon problems in online market, compared with traditional markets, have their specific causes and manifestations.In accordance with purpose of the research, this paper induces four factors contributing to the online lemon problems, which are the consumers, online sellers, online products and the Internet itself. Also,the writer finds out that the online lemon problems mainly take place in three processes, i.e. when online sellers communicate with consumers, when consumers collect information and when consumers evaluate this information.According to Nelson, Darby and Karni, who made distinction among the search goods, experience goods and credence goods, employing the exploratory survey approach, from the perspective of consumer behavior, the writer finds out that product category has a significantly influence on consumer information search behavior, particularly in the consumer's depth of search, width of search and free-riding behavior of the search and so on. In other words,the online lemon problems are caused by experience and credence goods. Based on the above mentioned, this paper designed corresponding marketing strategies for online sellers, these strategies are:make the utmost of the role of intermediaries, reputation shifting strategy, contribute to the transformation of the product attributes, and consumer participative pricing strategies.