Featured Research

from universities, journals, and other organizations

Selling on eBay? Get higher bids with a red background

Date:
July 17, 2012
Source:
University of Chicago Press Journals
Summary:
The color red influences consumers to become more aggressive in online auctions and affects how much they are willing to pay for products as varied as video game consoles and Florida vacation packages, according to a new study. But the color blue can influence consumers to make lower offers when negotiating directly with a seller.

The color red influences consumers to become more aggressive in online auctions and affects how much they are willing to pay for products as varied as video game consoles and Florida vacation packages, according to a new study in the Journal of Consumer Research. The color blue can influence consumer offers when negotiating directly with a seller.

"Red background color induces aggression through a feeling of arousal and it increases aggression relative to blue or gray backgrounds. This causes individuals to make higher bids in auctions but lower offers in negotiations," write authors Rajesh Bagchi (Virginia Tech) and Amar Cheema (University of Virginia).

The authors asked consumers to imagine they were purchasing a Nintendo Wii video game console on eBay and then showed them identical products on a white computer screen with either a blue, red, gray, or white banner on the page.

Some consumers were shown a screenshot of an eBay auction and given the option to choose a maximum bid or pay a "buy it now" price of $149.99. Buyers offered higher bids when the screen had a red background.

A second group had the option to pay the "buy it now" price or make just one offer that the seller could either accept or reject. In this case, a red background had the opposite effect of reducing willingness to buy the product and consumers were willing to pay more when the background was blue.

Buyers think they are competing against other bidders in auctions. Therefore, a red background is advantageous to sellers as aggressive bidders will try to win by outbidding other potential buyers and therefore offer higher bids. In negotiations, however, buyers are competing against the seller and will try to get the best deal. In this case, sellers will benefit from a blue background.

"Just as influential as the product itself is its selling mechanism -- auction or negotiation -- which moderates the effect of color on willingness-to-pay," the authors conclude.


Story Source:

The above story is based on materials provided by University of Chicago Press Journals. Note: Materials may be edited for content and length.


Journal Reference:

  1. Rajesh Bagchi and Amar Cheema. The Effect of Red Background Color on Willingness-to-Pay: The Moderating Role of Selling Mechanism. Journal of Consumer Research, February 2013

Cite This Page:

University of Chicago Press Journals. "Selling on eBay? Get higher bids with a red background." ScienceDaily. ScienceDaily, 17 July 2012. <www.sciencedaily.com/releases/2012/07/120717100241.htm>.
University of Chicago Press Journals. (2012, July 17). Selling on eBay? Get higher bids with a red background. ScienceDaily. Retrieved July 25, 2014 from www.sciencedaily.com/releases/2012/07/120717100241.htm
University of Chicago Press Journals. "Selling on eBay? Get higher bids with a red background." ScienceDaily. www.sciencedaily.com/releases/2012/07/120717100241.htm (accessed July 25, 2014).

Share This




More Mind & Brain News

Friday, July 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Beatings and Addiction: Pakistan Drug 'clinic' Tortures Patients

Beatings and Addiction: Pakistan Drug 'clinic' Tortures Patients

AFP (July 24, 2014) A so-called drugs rehab 'clinic' is closed down in Pakistan after police find scores of ‘patients’ chained up alleging serial abuse. Duration 03:05 Video provided by AFP
Powered by NewsLook.com
New Painkiller Designed To Discourage Abuse: Will It Work?

New Painkiller Designed To Discourage Abuse: Will It Work?

Newsy (July 24, 2014) The FDA approved Targiniq ER on Wednesday, a painkiller designed to keep users from abusing it. Like any new medication, however, it has doubters. Video provided by Newsy
Powered by NewsLook.com
Can Watching TV Make You Feel Like A Failure?

Can Watching TV Make You Feel Like A Failure?

Newsy (July 24, 2014) A study by German researchers claims watching TV while you're stressed out can make you feel guilty and like a failure. Video provided by Newsy
Powered by NewsLook.com
China's Ageing Millions Look Forward to Bleak Future

China's Ageing Millions Look Forward to Bleak Future

AFP (July 24, 2014) China's elderly population is expanding so quickly that children struggle to look after them, pushing them to do something unexpected in Chinese society- move their parents into a nursing home. Duration: 02:07 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

    Health News

      Environment News

        Technology News



          Save/Print:
          Share:

          Free Subscriptions


          Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

          Get Social & Mobile


          Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

          Have Feedback?


          Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
          Mobile: iPhone Android Web
          Follow: Facebook Twitter Google+
          Subscribe: RSS Feeds Email Newsletters
          Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins