Multichannel sales strategies have become common in consumer markets due to the usage of advanced information technologies. However, the interactions between multichannel prices in Business-to-Business (B2B) markets are largely underexplored. This paper investigates the impact of a pre-sales posted price channel on the performance of the century-old sequential B2B Dutch flower auctions. The pre-sales channel is conducted online ahead of the auctions. Only a specified fraction of each flower lot can be sold through the pre-sales. Given this limit, growers can decide on their participation, available quantity and selling price. Flowers that are not sold during the pre-sales are added to the auctions. Our analysis of over 2 million flower lots traded in 2015 reveals a higher total revenue for lots that are offered in the pre-sales as compared to lots that are not. The result holds true even for lots where no actual sales occurred in the pre-sales channel.

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38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
Rotterdam School of Management (RSM), Erasmus University

Truong, H. M., Ketter, W., Gupta, A. (Alok), & van Heck, E. (2018). Effects of Pre-sales Posted Price Channel on Sequential B2B Dutch Flower Auctions. In ICIS 2017: Transforming Society with Digital Innovation. Retrieved from

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