Transferring, Eliminating, or Both? The Strategic Impact of Resale Platforms and Consumer Learning on Coping with Consumer Uncertainty
For sellers of experience goods, consumer uncertainty threatens profits. Resale platforms and enhanced consumer learning are popular tools to manage this uncertainty, but their impacts differ significantly and require tailored strategies. Our research reveals critical nuances overlooked by prior studies: the resale platform’s negative effect is often underestimated because of its indirect influence on consumer waiting behavior, whereas consumer learning can harm sellers of high-cost goods when consumers are impatient. Critically, the profitability and environmental outcomes depend on production costs and consumer patience. Encouraging consumer learning creates a profit-environment win–win with patient consumers, whereas resale platforms excel with impatient consumers and high costs. Combining both mechanisms benefits sellers only when consumers are patient and costs are moderate ([Formula: see text]"). Key strategic imperatives emerge: (i) resale behavior: encourage selectively (beneficial mainly for high-cost goods), minimizing resale discounts; (ii) learning behavior: nurture consumer patience and avoid rushing purchases, especially for premium goods; and (iii) product upgrades: avoid frequent, minor updates. Sellers must move beyond one-size-fits-all approaches, aligning their uncertainty management (resale, learning, upgrades) with product economics and consumer patience to optimize profits and sustainability.
Authors
- Yusheng Wang
- Xin Robert Luo (ORCID: https://orcid.org/0000-0003-0122-7293)
- Xuanming Bai
- Yongjian Li
Institutions
- Hong Kong Polytechnic University (HK)
- Tianjin University (CN)
- University of New Mexico (US)
- Nankai University (CN)
Publication Details
- Journal
- Information Systems Research
- Published
- 2025-09-15
- DOI
- https://doi.org/10.1287/isre.2023.0659
- Primary Topic
- Digital Marketing and Social Media
- Type
- article
- Field-Weighted Citation Impact
- 0.00