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.

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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
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article

Transferring, Eliminating, or Both? The Strategic Impact of Resale Platforms and Consumer Learning on Coping with Consumer Uncertainty

Yusheng Wang, Xin Robert Luo, Xuanming Bai, Yongjian Li
Information Systems Research
Digital Marketing and Social Media
article

Transferring, Eliminating, or Both? The Strategic Impact of Resale Platforms and Consumer Learning on Coping with Consumer Uncertainty

Yusheng Wang, Xin Robert Luo, Xuanming Bai, Yongjian Li
article en

Abstract

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.

Information Systems Research
Hong Kong Polytechnic University (HK), Tianjin University (CN), University of New Mexico (US), Nankai University (CN)
Openalex Percentile: Top 67%
Digital Marketing and Social Media
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Transferring, Eliminating, or Both? The Strategic Impact of Resale Platforms and Consumer Learning on Coping with Consumer Uncertainty — Yusheng Wang, Xin Robert Luo, et al. · Information Systems Research (2025) | TGRS Research Map | TGRS