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The Effect of Social Cues on Sniping Behavior in Internet Auctions: Field Evidence and a Lab Experiment

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  • Kamins, Michael A.
  • Noy, Avi
  • Steinhart, Yael
  • Mazursky, David

Abstract

This research explores how social cues presented in an online auction affect sniping behavior. Sniping is a strategy of placing a bid on an item in the very ending stages of an auction with a pre-determined ending time in an attempt to win the auction. Such a strategy conceals the intentions of the bidder until the last moments of the auction and minimizes the possibility of other opposing bidders submitting higher bids due to the short period of time left to respond. The research includes two field studies and a lab experiment indicating that sniping appears to be influenced by social factors, that is, when there are a greater number of bidders in the auction or the auction site provides social information about the bidders, the relative use of sniping increases. This research supports the perspective that bidders rely on others' bidding behavior and characteristics as an indication of the true value of the item on sale, and is one of the first studies in the literature which takes this perspective.

Suggested Citation

  • Kamins, Michael A. & Noy, Avi & Steinhart, Yael & Mazursky, David, 2011. "The Effect of Social Cues on Sniping Behavior in Internet Auctions: Field Evidence and a Lab Experiment," Journal of Interactive Marketing, Elsevier, vol. 25(4), pages 241-250.
    • Handle: RePEc:eee:joinma:v:25:y:2011:i:4:p:241-250
    DOI: 10.1016/j.intmar.2011.03.002
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    References listed on IDEAS

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    Cited by:

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    3. Adam, Marc T.P. & Krämer, Jan & Müller, Marius B., 2015. "Auction Fever! How Time Pressure and Social Competition Affect Bidders’ Arousal and Bids in Retail Auctions," Journal of Retailing, Elsevier, vol. 91(3), pages 468-485.
    4. Li, Rui & Chung, Te-Lin (Doreen) & Fiore, Ann Marie, 2017. "Factors affecting current users’ attitude towards e-auctions in China: An extended TAM study," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 19-29.
    5. Hofmann, Eva & Hoelzl, Erik & Sabitzer, Thomas & Hartl, Barbara & Marth, Sarah & Penz, Elfriede, 2022. "Coercive and legitimate power in the sharing economy: Examining consumers’ cooperative behavior and trust," Journal of Economic Psychology, Elsevier, vol. 93(C).
    6. Barbaro, Salvatore & Bracht, Bernd, 2021. "Shilling, Squeezing, Sniping. A further explanation for late bidding in online second-price auctions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    7. Martin, Ingrid M. & Kamins, Michael A. & Pirouz, Dante M. & Davis, Scott W. & Haws, Kelly L. & Mirabito, Ann M. & Mukherjee, Sayantani & Rapp, Justine M. & Grover, Aditi, 2013. "On the road to addiction: The facilitative and preventive roles of marketing cues," Journal of Business Research, Elsevier, vol. 66(8), pages 1219-1226.
    8. Adam, Marc T.P. & Astor, Philipp J. & Krämer, Jan, 2016. "Affective Images, Emotion Regulation and Bidding Behavior: An Experiment on the Influence of Competition and Community Emotions in Internet Auctions," Journal of Interactive Marketing, Elsevier, vol. 35(C), pages 56-69.
    9. Zakonnik Łukasz & Czerwonka Piotr & Zajdel Radosław, 2022. "Online Auctions End Time and its Impact on Sales Success – Analysis of the Odds Ratio on a Selected Central European Market," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 246-264, December.
    10. Steinhart, Yael & Kamins, Michael A. & Mazursky, David & Noy, Avraham, 2013. "Thinking or Feeling the Risk in Online Auctions: The Effects of Priming Auction Outcomes and the Dual System on Risk Perception and Amount Bid," Journal of Interactive Marketing, Elsevier, vol. 27(1), pages 47-61.

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