Improving Sales in Online Auctions: The Impact of Emphasizing Corporate Social Responsibility in Item Descriptions

ABSTRACT

This study explores how emphasizing corporate social responsibility (CSR) in item descriptions relates to purchasing decisions for consumers buying goods through online auctions. We leverage herd mentality theory, the heuristic–systematic model (HSM), and signaling theory to develop a framework of how online auctions may be impacted by item descriptions touting CSR. We then utilize text analysis to examine 23,932 auctions and analyze how emphasizing CSR in item descriptions influenced actual purchase opportunities. In this study, we find that including more CSR terminology in an item description increases sales both directly and indirectly, via an increase in the number of bids. These findings can be leveraged by sellers to better promote their products, by using terminology that targets the desire of bidders to experience positive psychosocial and values-affirming sentiments when making purchases.

KEY WORDS AND PHRASES:

• Online auctions
• corporate social responsibility
• text analysis
• herd mentality
• heuristic–systematic model
• signaling theory

Disclosure statement

The authors have no conflicts of interest to disclose.

Additional information

Notes on contributors

Andrew S. Manikas

Andrew Manikas ([email protected]) is a professor in the Information Systems, Analytics and Operations Department in the College of Business at the University of Louisville. He received his Ph.D. degree from the Georgia Institute of Technology. Dr. Manikas’s research and teaching interests focus on corporate social responsibility and supply chain management.

James R. Kroes

James Kroes ([email protected]; corresponding author) is a professor in the Information Technology and Supply Chain Management Department at Boise State University’s College of Business and Economics. His research interests include sustainable operations management, transportation optimization, and manufacturing and retail supply chain management.

Shaunn Mattingly

Shaunn Mattingly ([email protected]) is an associate professor in the Department of Management in the College of Business and Economics at Boise State University. His research examines individual cognitions related to opportunity recognition, employee alignment with strategy, and entrepreneurial persistence.

Garrett A. McBrayer

Garrett Mcbrayer ([email protected]) is an associate professor in the Department of Finance in the College of Business and Economics at Boise State University. After an eight-year activity in the private sector, he received his Ph.D. from the University of Arkansas. Dr. McBrayer’s research centers on corporate social responsibility, information asymmetry, corporate finance, and investments, with a particular focus on firm transparency and financial contagion.