Show Me The Goods

Consumers using online auction websites face the challenge of appraising products at a distance. Sellers and buyers in online auctions navigate this challenge by displaying and evaluating various cues, a critical one being use of photographs. Warranting theory predicts that cues less subject to control and manipulation by the presenter will be more influential in impression formation. Therefore, user-generated photographs which display the actual item should be more effective in generating successful auctions, more bidders, more bids, and higher prices, compared with stock photographs. A field experiment tested this prediction by systematically manipulating photographs for eBay auctions. User-generated photographs were found to have a positive effect on likelihood of selling and the number of auction bidders. Findings indicate that attracting more bidders is a possible mechanism for higher sale prices and also show a moderating role of bidder experience.